Turbulence Ahead for Major Airlines

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Air travel used to be controlled by the Civil Aeronautics Board, which assigned routes to the airlines, thereby eliminating competition. Then came de-regulation under President Carter in 1978. Since then, the business has bounced back from economic slumps in the 1980-s and 90-s. But then came September 11. Now, the airline business is roaring back, with American, United and four other so-called -majors- selling tickets again. The irony is they-re losing money. A new generation of companies, led by Southwest and Jet Blue, is offering not just cheaper fares, but better service, including on-time arrival. That-s great for flying customers, but how long can it last? Warren Olney speaks with travel writers, airline analysts, economists, and representatives of the airlines' trade association and pilots' association about the uncertain future of an evolving industry. Making News: Arafat Appoints New Head of Security Backing down in the face of rioting in the Gaza Strip, Yasser Araft has replaced his cousin Moussa Arafat as head of security. Award-winning journalist Daoud Kuttab, director of the Institute of Modern Media at Al Quds University in Jerusalem and host of an Internet radio station in Amman, Jordan, has more. Reporter's Notebook: Are Authorities Keeping Olympic Doping Cases Secret? When the Olympic Track and Field trials ended yesterday in Sacramento, Marion Jones and Torri Edwards were part of America-s preliminary Olympic team-even though they-re both involved in ongoing doping investigations. How many other athletes also are suspect-without sports fans or their competitors being told about it? David Wharton raises that issue in today-s Los Angeles Times.
Air travel used to be controlled by the Civil Aeronautics Board, which assigned routes to the airlines, thereby eliminating competition. Then came de-regulation under President Carter in 1978. Since then, the business has bounced back from economic slumps in the 1980-s and 90-s. But then came September 11. Now, the airline business is roaring back, with American, United and four other so-called -majors- selling tickets again. The irony is they-re losing money. A new generation of companies, led by Southwest and Jet Blue, is offering not just cheaper fares, but better service, including on-time arrival. That-s great for flying customers, but how long can it last? Warren Olney speaks with travel writers, airline analysts, economists, and representatives of the airlines' trade association and pilots' association about the uncertain future of an evolving industry.
  • Making News: Arafat Appoints New Head of Security
    Backing down in the face of rioting in the Gaza Strip, Yasser Araft has replaced his cousin Moussa Arafat as head of security. Award-winning journalist Daoud Kuttab, director of the Institute of Modern Media at Al Quds University in Jerusalem and host of an Internet radio station in Amman, Jordan, has more.
  • Reporter's Notebook: Are Authorities Keeping Olympic Doping Cases Secret?
    When the Olympic Track and Field trials ended yesterday in Sacramento, Marion Jones and Torri Edwards were part of America-s preliminary Olympic team-even though they-re both involved in ongoing doping investigations. How many other athletes also are suspect-without sports fans or their competitors being told about it? David Wharton raises that issue in today-s Los Angeles Times.

Credits

Host:

Warren Olney