Case – The U.S. Airline Industry Public Support
Case – The U.S. Airline Industry Public Support
August 26, 2013
Arguments In Favor of the Federal Government Providing Support to the U.S.
Airlines
“To preserve the continued viability of the United States air transportation system” is the title of a bill introduced before congress, by Rep. Don Young (R-AK), September 14, 2001, in response to the
September 11 attack. The title of the bill is the overriding argument justifying federal support to the U.S. airlines. “If planes don’t fly, the whole economy shuts down,” said Sen. Jay Rockefeller (D-WV).
Airlines play a crucial role in facilitating commerce, providing jobs, and bringing the people of geographically distant communities closer together. Specifically, proponents’, such as Scott C. Gibson,
Sr. VP and Managing Officer at SH&E, arguments include these key points:
The industry employs hundreds of thousands of American citizens. Assistance would avoid shut down cost of unemployment benefits, welfare payments and tax loss;
The Industry impacts businesses that feed off of the airline industry. The airline industry spends upwards of $100 billion annually on goods and services.
The industry is the most reliable and cost effective on earth and is considered key to the competitiveness of the American economy. Aid would ensure strong competition in the airline industry with consequent benefits to the American people.
Additional arguments for federal support include:
With federal assistance, small communities that had scheduled air service prior to 9/11 could continue to receive essential, adequate air service without interruption.
Prior to the 9/11 attack, the outlook for the airline industry was not good. Losses had been forecast in the billions of dollars. The 9/11 events exacerbated the problems within the airline industry. The industry had moved from a “troubled” industry to an “endangered” business, as noted by Gibson. In light of this situation, Senator Kay
August 26, 2013
Arguments In Favor of the Federal Government Providing Support to the U.S.
Airlines
“To preserve the continued viability of the United States air transportation system” is the title of a bill introduced before congress, by Rep. Don Young (R-AK), September 14, 2001, in response to the
September 11 attack. The title of the bill is the overriding argument justifying federal support to the U.S. airlines. “If planes don’t fly, the whole economy shuts down,” said Sen. Jay Rockefeller (D-WV).
Airlines play a crucial role in facilitating commerce, providing jobs, and bringing the people of geographically distant communities closer together. Specifically, proponents’, such as Scott C. Gibson,
Sr. VP and Managing Officer at SH&E, arguments include these key points:
The industry employs hundreds of thousands of American citizens. Assistance would avoid shut down cost of unemployment benefits, welfare payments and tax loss;
The Industry impacts businesses that feed off of the airline industry. The airline industry spends upwards of $100 billion annually on goods and services.
The industry is the most reliable and cost effective on earth and is considered key to the competitiveness of the American economy. Aid would ensure strong competition in the airline industry with consequent benefits to the American people.
Additional arguments for federal support include:
With federal assistance, small communities that had scheduled air service prior to 9/11 could continue to receive essential, adequate air service without interruption.
Prior to the 9/11 attack, the outlook for the airline industry was not good. Losses had been forecast in the billions of dollars. The 9/11 events exacerbated the problems within the airline industry. The industry had moved from a “troubled” industry to an “endangered” business, as noted by Gibson. In light of this situation, Senator Kay