US travel industry fearful of war

Thursday, 20 Nov, 2002 0

The US travel industry is preparing itself for a huge drop in business if the war with Iraq goes ahead.

With businesses still suffering from the effects of September 11, some industry veterans are predicting a war will lead to a repeat of 1991, when travel came to a standstill during the Gulf War.

The Air Transport Association is estimating a war could cause a decline in yearly airline sales from between $1 billion and $5 billion. An ATA spokesman said airlines with Atlantic and Pacific routes would realign flights to cope with a change in demand.

Continental chairman and chief executive Gordon Bethune said airlines have asked for a wartime relaxation of competition rules so that they can collectively adjust their schedules.

Meanwhile, a poll of travel agents throughout the US found many predicting they would have to lose staff during a war because of the loss of business.



 



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