Could Evansville Lose Airline Service?

News Release: From: Business Travel Coalition Evansville Among Communities Most Likely to Lose Airline Service High Fuel Prices Threaten Airline Service Across The Country; Catastrophic Effects Could Reach Beyond Aviation to Broad Spectrum of Local Businesses and Travelers RADNOR, PA, June 25, 2008—Evansville’s air service could become an unwitting victim of high fuel prices, as multiple U.S. airlines are likely to default and fail in the coming months while other airlines retrench, according to a recent study, “Oil Prices and the Looming U.S. Aviation Industry Catastrophe: A Hole in the Transport Grid,” conducted for Business Travel Coalition (BTC). In fact, Evansville was identified as one of the 100 regional markets most likely to lose some or all service, according to subsequent analysis by BTC. With airlines unable to rely on Chapter 11 reorganization due to a tight credit market, it’s very likely that at least one – and perhaps several – major airlines could be liquidated entirely this year and early next, joining the growing list of smaller U.S. airlines that have already ceased operations in 2008. This could happen even sooner if fuel prices rise further. This crisis does not bode well for the economies of communities at risk across the U.S., including Evansville. Moreover, with the overnight loss of major airlines, numerous local businesses will be impacted, from restaurants and manufacturers to florists, jewelers and grocery stores – all of which rely directly on air cargo somewhere in their supply chains for fast movement of their essential goods. A study released earlier this week, “Beyond the Airlines’ $2 Can of Coke: Catastrophic Impact on the U.S. Economy from Oil-price Trauma in the Airline Industry,” thoroughly analyzes the impacts of a failed airline industry on the country. “Liquidations at major airlines would have catastrophic effects on the economy, drastically reduce service in cities large and small, and impact people in Evansville whether they work at the airport, rely on air service for business or leisure travel, work in one of many industries that use air cargo for their livelihoods or serve local offices of national companies that have located in Evansville because of its easy airline access,” said BTC Chairman Kevin Mitchell. “The fuel crisis is having an impact beyond the gas pump and is now likely to cause irreparable harm to businesses large and small through a significant reduction in air service.” According to the Coalition, leaders in Washington must take swift and sure action to stop the catastrophe from devastating Evansville’s air service. These actions include eliminating manipulation of commodities markets; strengthening the U.S. dollar against foreign currencies; and incentivizing producers to increase energy supplies, refine capacity and develop new environmentally responsible aviation fuels. Furthermore, the Coalition urges concerned citizens in Evansville to (1) contact their elected officials in Washington to raise their awareness of this impending fuel-driven airline industry catastrophe, (2) communicate how it will specifically impact Evansville and (3) suggest what policy priorities should be considered. BTC recently launched www.SaveMyAirport.com for citizens to learn more about this topic and to help them engage their elected officials. To download “Oil Prices and the Looming U.S. Aviation Industry Catastrophe…,” go to http://tinyurl.com/6qhh99 To download “Beyond the Airlines’ $2 Can of Coke…,” go to http://tinyurl.com/63wxy2 For a list of the markets most likely to lose service, go to http://tinyurl.com/67bjv2