04 September 2006

US airline industry bounces back at a cost

The Associated Press in a new article claims that the US airline inustry is recovering after the loss of 150,000 positions, the bankrupcy of 10 companies and total losses of up to $40 billion after the September 11 attacks.

But according to the AP reporter this was a much needed disaster for the troubled industry.
He claims that as airlines jam-pack their planes (due to fleet reductions) and do not give out any free food, blankets or pillows as they are heading back to profitability.

The same source quotes "Carriers also used force majeure clauses and the threat of bankruptcy as powerful tools to lay off workers, rewrite labor contracts, cancel aircraft orders and outsource maintenance, catering and other services".

Strangely all this seems like a backward trend and not forward step for the aviation industry.

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