For Immediate Release CONTACT: Press Office
June 26, 2008 (202) 226-3636
Committee
Examines Air Travel Crisis and How It’s Hurting Entrepreneurs and the Economy
Click here to view witness testimony.
Click here to view video of the hearing.
“These air travel problems
are having a devastating impact on both business travelers and the tourism
industry. Increasing the cost and time of business or leisure travel is a
sure way to make the economic downturn worse,” said Chairwoman Nydia M.Velázquez.
“It’s time large airlines recognize what their continued price hikes and
diminished service mean for the nation.”
A drop in foreign travel to
the
“The FAA has known about a
looming infrastructure problem for years, but they have failed to ensure the
system can handle today’s volume of aircrafts—let alone tomorrow’s,” said
Chairwoman Velázquez. “For their part, the major airlines claim they are bearing
the burden. But it’s clear they’re more interested in protecting their monopoly
than engaging in the sort of market competition that improves service for
customers.”
Entrepreneurs—including restaurant
owners, retailers and travel agents—make up 97 percent of the travel and
tourism industry. Along with passengers,
they are the ones who feel the impact of price hikes and delays most. Last
year alone, they saw a marked decrease in air transport related business, and
most expect the summer travel season to be among the lowest in the past 20
years. Such trends threaten to erode local
economies and are likely to bring further job losses in a wide range of
industries.
“Massive delays and rising
ticket prices are well beyond the point of inconvenience. Oversimplifying this complex problem would be
a mistake,” said Chairwoman Velázquez. “The
American air travel system is broken, and the resulting crisis is having a
serious impact on our economy.”
# # #