Finance directors of leading carriers at the finance committee of the International Air Transport Association IATA estimated that net losses for international scheduled traffic and domestic US traffic could easily exceed $10 billion in 2001 only.

The industry believes is its only chance to survive the national tragedy and the financial crisis facing the industry is to reduce costs and receive immediate and significant U.S. government financial support.

AMERICAN AIRLINES:

Notified employees that it is forced to reduce jobs by at least 20,000. The employment losses result from the airline's 20 percent schedule reduction, the complexity of new security procedures, and a sharp reduction in passenger traffic - all creating a state of emergency at American and across the entire airline industry.

American said its mission is to operate a safe and secure airline while it and the rest of the industry struggles to survive. In addition to the job cuts, American said it has identified significant product and service changes - especially those things that increase the amount of ground contact with airplanes and that ensure a more dependable operation given the new security regulations.

UNITED AIRLINES

In response to reduced flight schedules in the wake of the September 11 terrorist attacks, United Airlines announced that it will furlough approximately 20,000 employees. The furloughs will affect all work groups of the company and will begin as soon as practicable.

"These actions are extremely painful ones, but they are absolutely critical to maintaining our ability to continue operating and meeting the needs of our customers over the near term," said James E. Goodwin, United's chairman and chief executive officer. "The entire industry is being severely affected by the consequences of September 11." United's flight schedule has been reduced by 20 percent to approximately 1,900 daily flights.

DELTA AIR LINES

Without immediate and significant U.S. government financial support, most of the airlines that make up the nation's commercial air transportation system will go bankrupt, Delta Air Lines Chairman and CEO Leo F. Mullin told members of Congress testifying on behalf of the Air Transport Association and its member airlines before the House Transportation and Infrastructure Committee. "Under current circumstances and without immediate financial support from the government, a number of carriers could be driven to bankruptcy within 60 days and the future of aviation could be severely threatened, U.S. air carriers have taken steps to shrink in size and are expected to announce the layoff of more than 100,000 employees".

Mullin told legislators that the several day shutdown of the airline industry, the projected long-term reduction in passenger demand and airline revenues, significantly increased costs. This, in addition to the consequences from the liability issues resulting from the events on September 11th, will generate crushing losses for the industry.

AIR FRANCE

In view of the current international situation and the uncertainty of its impact on the air transport industry, Air France ha decided it's Fleet reducing capacity, various Airbus A310-200s/300s, a Boeing B747 freighter, Boeing B747-200s will be retired early, leased Airbus A321s will be withdrawn once their lease expires . These measures will enable Air France to step up its policy of upgrading, streamlining and rationalizing its fleet.

As a precautionary measure, all planned recruitment will be postponed and the Company's investment programme will be carefully reviewed. The global economic climate, hard hit by the recent terrorist attacks in the United States, has forced Air France to review their commercial offer, particularly where North America is concerned.

BRITISH AIRWAYS

Announced a series of measures to address the anticipated reduction in demand from passengers following the tragic events in the USA. The measures include a reduction in flying of 10 per cent, in addition to previously announced reductions, the withdrawal of 20 aircraft from the British Airways operation, the loss of 7,000 jobs.

Chief Executive Rod Eddington said "We face exceptional conditions which have forced us to take very tough decisions, the tragic events in the USA will undoubtedly have a significant impact on the demand for air travel in the months ahead. We have taken the necessary steps to curtail expenditure and sadly to cut our workforce. "Despite the difficult market, our balance sheet remains strong and we are a well-established business. However, we must act now to protect British Airways for the long term."

A reduction of 10 aircraft from the long-haul fleet will be achieved initially by advancing the retirement of the Boeing 747-200 fleet from Spring 2002 and then by withdrawing other wide-bodied aircraft. Six Boeing 767s and four narrow-bodied aircraft will be withdrawn from the short-haul operation.

KLM

Schedule changes - As of October 1, 2001 by the latest, KLM will reduce the capacity (available seats) on several routes. This is a result of the tragic events in the United States, which have lead to a decrease in demand for air transport. This means that several scheduled flights will be cancelled as of October 1, 2001.

LUFTHANSA

Lufthansa approved a comprehensive package of drastic measures. Revises its profit forecast in the wake of terrorist attacks in the US - Executive Board approves comprehensive package of measures to bolster profitability "The aviation industry has been hit badly by the consequences of the terrorist attacks. It will require immense efforts on the part of all Lufthansa staff if we are to avoid an operating loss this year," Lufthansa CEO and chairman Jürgen Weber said.

The Board agreed to shelve plans to order up to 15 Airbus A380s and four Boeing 747-400 wide-body jets. There will also be further spending restrictions. In principle, Lufthansa will not recruit any new staff Group-wide. Urgent adjustments are being made to route network. Flights discontinuing has already been announced.

BOEING

Given the impacts of the horrific attacks of September 11, and the resulting capacity reductions now anticipated by its airline customers, Boeing's Commercial Airplanes unit is setting in place plans to reduce its employment by approximately 20,000 to 30,000 people by the end of 2002. (See full news transportando.net Sept. 24 )