Agency says Iraq war could cost airlines another $10 billion CHICAGO, (Reuters) =97 The war in Iraq could easily add $10 billion to world= =20 airline losses and deepen what is already the worst crisis in the history=20 of commercial aviation, the International Air Transport Association said=20 Saturday. In the gloomiest forecast yet of the impact of the war on the=20 industry, the association said it expects international passenger travel to= =20 drop 15 to 20% during the war, depending on the region of the world. The=20 IATA's forecast was the latest evidence of how devastating the outbreak of= =20 war in Iraq is for a key part of the global economy. Airlines have already= =20 reported accumulated losses of $30 billion since the Sept. 11, 2001 attacks= =20 in the United States reduced air travel. During the war, many companies=20 have ordered employees to only take essential business trips while tourists= =20 worldwide are canceling or postponing air travel altogether. International= =20 bookings have plunged, particularly in the United States, where many people= =20 are choosing to stay home. Airlines all over the world have been=20 curtailing schedules, especially international routes to and from the=20 Middle East, and many have had to cut jobs to stay in business. BANKRUPTCIES WEIGH Three U.S. airlines are already in bankruptcy protection =97 United= Airlines,=20 US Airways and Hawaiian Airlines =97 while the world's largest airline,=20 American, is also teetering on the brink. "The people who've always relied= =20 on American to get them to that business meeting in New York or that family= =20 reunion in Los Angeles are instead buying no-frills tickets on the Internet= =20 or worse still =97 deciding to stay home," American Chief Executive Officer= =20 Donald Carty told employees in Chicago on Friday. "On top of all this, our= =20 nation has taken action against Iraq." As the U.S.-led war on Iraq began=20 this week, four of the top six U.S. airlines =97 American, United,=20 Continental and Northwest =97 announced cuts in schedules. A host of major= =20 airlines in Europe and Asia also have curtailed international schedules.=20 United, Northwest, Continental and Air Canada have gone even further,=20 imposing job cuts or temporary furloughs of employees. While the job losses= =20 by Air Canada and Continental were not just the result of the Iraq war,=20 both United and Northwest cited the war as a major factor in their=20 respective cuts. Of the top six U.S. carriers, only Delta and Southwest=20 have not made cuts since the start of the war. Spokesmen for each airline=20 declined to comment Saturday on whether any job- or flight-schedule cuts=20 are planned. Southwest, a low-fare carrier considered one of the most=20 efficient in the industry, was also the only major U.S. carrier not to make= =20 cuts after Sept. 11, 2001. MERGERS THE ANSWER? Governments must help airlines tap financial markets for cash and allow=20 them to merge to survive the crisis, IATA Director General Giovanni=20 Bisingnani said on Saturday. "We need the economies of scale that mergers=20 and acquisitions can provide," he said. Many countries, especially in=20 Europe, have national ownership restrictions on airlines. Bisingnani said=20 those restraints must go. After Sept. 11, the U.S. government established=20 an emergency loan program for airlines, but has been stringent about=20 approving the credit guarantees. Late last year, it rejected an application= =20 from No. 2 U.S. carrier United Airlines and the airline filed for=20 bankruptcy protection days later. Now U.S. carriers and some members of=20 Congress are calling for the government to step in again to help struggling= =20 airlines cope with the decline in business from the Iraq war. Rep. James=20 Oberstar of Minnesota, said on Friday the airline job cuts announced this=20 week "clearly demonstrates the need" for Congress to approve an assistance= =20 package for airlines. "We must not force the airlines to bear a=20 disproportionate share of the direct and indirect costs of a war with=20 Iraq," Oberstar said. He has proposed an airline aid bill in the House .=20 Meanwhile, IATA said it has set up a task force to help its 270 member=20 airlines plan and operate their routes during war. *************************************************** The owner of Roger's Trinbago Site/TnTisland.com Roj (Roger James) escape email mailto:ejames@xxxxxxxxx Trinbago site: www.tntisland.com Carib Brass Ctn site www.tntisland.com/caribbeanbrassconnection/ Steel Expressions www.mts.net/~ejames/se/ Site of the Week: http://www.thehummingbirdonline.com TnT Webdirectory: http://search.co.tt *********************************************************