Looks like were all in trouble. Some of us may not be around.
CEO: Airline future 'perilous'
Six airline CEOs appeared before members of the House transportation committee today to give update the state of the airline industry. They warned that the industry faces a "perilous" future unless fuel prices fall or airfares rise. Continental CEO Gordon Bethune described the industry's financial condition as "perilous," and said the skies are only "getting darker," according to Reuters . One of the most anticipated topics at the hearing was United's bid to secure a federal loan guarantee, part of Congress' post 9/11-bailout package. Rivals say United doesn't deserve the loan because its problems predate the 9/11-related loan program. United CEO Glenn Tilton has said his airline faces an uncertain future if it does not win approval for the loan guarantees. At least one competitor was not sympathetic. "The problem with aviation policy today is that there is a gross mismatch between the barriers to entry and the barriers to exit," AirTran CEO Joe Leonard will say in prepared testimony, according to The Wall Street Journal (subscription required) . "We should keep the exit doors open and let inefficient carriers — be they low cost or high cost — fail." Rep. John Mica (R-Fla.), chairman of the House aviation subcommittee, seemed to agree. He warned that airlines in trouble "must be prepared to fend for themselves. Congress is not going to underwrite losing airline operations," Updated at 1 p.m. ET
CEO: Airline future 'perilous'
Six airline CEOs appeared before members of the House transportation committee today to give update the state of the airline industry. They warned that the industry faces a "perilous" future unless fuel prices fall or airfares rise. Continental CEO Gordon Bethune described the industry's financial condition as "perilous," and said the skies are only "getting darker," according to Reuters . One of the most anticipated topics at the hearing was United's bid to secure a federal loan guarantee, part of Congress' post 9/11-bailout package. Rivals say United doesn't deserve the loan because its problems predate the 9/11-related loan program. United CEO Glenn Tilton has said his airline faces an uncertain future if it does not win approval for the loan guarantees. At least one competitor was not sympathetic. "The problem with aviation policy today is that there is a gross mismatch between the barriers to entry and the barriers to exit," AirTran CEO Joe Leonard will say in prepared testimony, according to The Wall Street Journal (subscription required) . "We should keep the exit doors open and let inefficient carriers — be they low cost or high cost — fail." Rep. John Mica (R-Fla.), chairman of the House aviation subcommittee, seemed to agree. He warned that airlines in trouble "must be prepared to fend for themselves. Congress is not going to underwrite losing airline operations," Updated at 1 p.m. ET
