June 25, 2008

"Beyond the Airlines' $2 Can of Coke: Catastrophic Impact on the U.S. Economy from Oil-Price Trauma in the Airline Industry," a report released by the Business Travel Coalition, argues that liquidations at the Big Six U.S. airlines could have a major negative effect on the U.S. economy as a whole. The paper discusses nine separate impacts that such actions would have on the economy in areas such as tourism, employment, reduced purchases from suppliers and more. As the paper asserts, "Failure of one large airline would disrupt the travel of 200,000 to 300,000 passengers per day and thousands of tons of goods. The almost-full planes of remaining airlines would not be able to absorb much of these volumes. Failure of multiple airlines would paralyze the country and our American way of life, leaving us less productive, more isolated, less happy and more vulnerable." On Thursday, congresswoman Nydia M. Velazquez (D-N.Y.) will present the report for discussion during a hearing of the U.S. House Small Business Committee, which she chairs.