Business

Chris Cantell Discusses Business: US air travel option shrink amid carrier strife
by Ivana Macakova

US air travelers have to face the rising prices of oil, soaring ticket prices, vanishing bargain fares, the new baggage fees. The changes press them to cut down the number of flights, airplanes and also employees. The changes are concerned in the smaller regional airports which already have lost all service. This is evident mainly in the East and Midwest. Though United didn`t specify which flights should be trimmed, several carriers cut down also flights to leisure destinations like Las Vegas, Honolulu, Orlando which are less profitable but with the strong demand. The airlines want to focus on higher-priced and more profitable routes mainly because of high fuel prices. Airline consultant Robert Mann said that some destinations have flourished only thanks to low air fares. But this reason isn`t sufficient for airlines, they primary have to follow the oil prices, which are still increasing. The largest airports may see only a small decline in flight options.Chairman of the House aviation subcommittee, Jerry Costello, said that he supported the small airports in rural areas by federal subsidies, but it was taking a long time to see the results. Next changes remain the taking about 70 more jets out of service and also eliminating about 1,100 additional jobs. Regarding the reduction of job positions, airlines plans to cut an additional 900 to 1.100 jobs, in addition to 500 previously announced job reductions. These numbers mean cutting nearly 3% of its 55.600 workers.United also plans to scrap its entire fleet of 94 Boeing B737s and also 747s which are least fuel-efficient planes. Besides the larger reduction in domestic capacity, it also is scaling back international capacity by 4 to 5%. In spite of the impact on travelers, industry analysts said the cutbacks were necessary.

related story: http://www.nydailynews.com/money/2008/06/04/2008-06-04_united_airlines_cutbacks_latest_problem_.html

by Ivana Macakova for PocketNews (http://pocketnews.tv)

PocketNews is a new real-time news broadcaster delivering the latest and hottest news right to your pocket ! With global clients who want to be kept up to date, PocketNews is everyone's way of keeping in touch with the World.<br><br><font size=2>These news are original content from young talents around the world and are selected for you by Chris Cantell.</font><br>

Posted by: Jana Kalicka

Labels: Business, CantellTV, Chris Cantell, Christopher Cantell, digital broadcasting, SigEx Foundry, SigEx Telecom

posted by Blog TechSource @ 5:31 AM