As President Reagan used to say, “Well, there you go again.” Last
week, the chief executive officers of Delta, American, Northwest
and AirTran testified before the House Aviation Subcommittee in
Washington. Their subject? They need more federal aid to stay
afloat.
You’ll remember that within 72 hours of the Sept. 11 tragedies
at a time when rescue workers were still searching the rubble for
survivors the airlines’ million-dollar lobbying machine already had
a draft bill presented on Capitol Hill asking for billions in
direct taxpayer grants and guaranteed loans. At the time, ARTA
completely opposed the federal bailout and we took a lot of
criticism for it. Now, we’re proudly resuming our opposition to
federal aid. It’s time to let the marketplace not Congress
determine which airlines stay in business.
Here are the facts: Before Sept. 11, the airlines were already
projected to lose $3.4 billion in 2001. Their troubles started well
before Sept. 11, with bloated labor contracts, out-of-control
operating costs and what ARTA believes to be an illegal campaign to
put travel agencies out of business.
Now, I have to echo what Business Travel Coalition President
Kevin Mitchell said in a recent statement: “U.S. major network
airlines have refused to take any responsibility whatsoever for the
financial crisis gripping their industry and have not addressed
fundamental cost and productivity problems that are the root of
their problems. It is time for the marketplace to punish and reward
management and labor decisions in the airline industry.”
We’re filing opposing comments with the House subcommittee, and
we may ask ARTA agents in key Congressional districts to start
calling their House members. As small retail travel agents, we face
free-market forces every day and it’s high time that the airlines
do the same.
