In the past 10 years, this Committee has witnessed dramatic ‘ups and downs’ in the airline industry.  For a state like Alaska, which depends on aviation more than any other mode of transportation, the seemingly constant state of turmoil and uncertainty is very concerning.

Over the last week and a half, Congress has debated the need to modernize the nation’s aviation infrastructure.  This modernization has important implications for both our busiest cities and rural areas, like Alaska.  Unfortunately, other issues made this impossible.  I hope that Congress will continue to work to modernize our aviation infrastructure.

Today, we turn to the financial state of the airlines.  On Monday of this week, crude oil rose to over $120 a barrel.  Already, many of the airlines and their employees have gone through difficult bankruptcy proceedings and restructuring.  If the price of oil continues to increase, or even remains stagnant at over $100 a barrel, sustainability of U.S. air carriers is going to be significantly impacted and we may see consolidation through elimination instead of mergers. 

Obviously, one solution to the crude oil problem is increased domestic production, but that is an issue for another hearing.