Less travel at Newark airport has ripple effect

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Less travel at Newark airport has ripple effect

NEWARK, N.J. (AP) =97 The Best Western Newark Airport West is less than two=
=20
years old, in a prime location across a highway from Newark Liberty=20
International Airport, one of the nation's busiest air hubs.  In the last=20
few weeks, the hotel no longer comes close to filling all 75 rooms. "We're=
=20
usually very busy during the week, but we've been very, very slow," said=20
Ennette Brea, front office manager. "Our guess is the whole war issue.=20
Nobody wants to travel." The war in Iraq has exacerbated a worldwide=20
decline in air travel that began after the 2001 terrorist attacks and=20
continued as the economy weakened. Fears about a new flu-like virus brought=
=20
another round of canceled bookings and flights. The slowdown is of=20
particular note in northern New Jersey, which has lost thousands of air=20
transportation jobs since 9-11, as well as jobs and tax revenue from hotels=
=20
and other industries catering to travelers.

The Best Western put some workers on four-day weeks to avoid layoffs, and=20
cut its orders of newspapers and Danish pastry, which are offered free to=20
guests. The hotel's occupancy is running about 25-35 percent this month,=20
down from 70-90 percent a year ago, Brea said. Olympic Limousine, which has=
=20
cars and shuttle buses taking travelers from Monmouth and Ocean counties to=
=20
Newark Liberty, also reports less demand. "The war will impact the service,=
=20
but probably less than 5 percent," said Roland Lopez, vice president of=20
operations for the Wall-based service. Even so, he said last month's=20
revenues were up 10 percent from the year before, when travel was way down=
=20
from 9-11 fallout.

The slowdown's effects have not been uniform. The Newark Airport Marriott,=
=20
the only hotel within the airport's maze of roads, is doing "very well,"=20
according to general manager Walter Ensminger. "Our location has definitely=
=20
helped us," he said. Diversification has helped Air Brook Limousine=20
mitigate the effects of war, fears of terrorism and a slumping economy,=20
said Steve Glasberg, assistant to the chairman. "The leisure business has=20
been less affected than business travel by the cutback in air travel,"=20
Glasberg said from the company's Rochelle Park base. "Many people are=20
canceling overseas trips in favor of local trips in the New York-New Jersey=
=20
area."

Air Brook now offers tours to such destinations as Mystic Seaport in=20
Connecticut and the Culinary Institute of America in Hyde Park, N.Y. "So=20
they enjoy themselves and, by the way, spend a lot less money" and Air=20
Brook keeps its 200 sedans, vans and buses on the road, Glasberg said. The=
=20
Newark labor market accounts for nearly 90 percent of the state's 15,300=20
air transportation jobs. That is down nearly 19 percent from pre-9-11=20
levels. The airport has about 24,000 workers, but not all are considered=20
part of air transportation. Hotel employment also has dropped since the=20
terrorist attacks.

The immediate future offers little encouragement. The dominant carrier at=20
Newark Liberty, Continental Airlines, is offering one daily flight to Paris=
=20
and London instead of two until May 1. That was announced March 18, when=20
the war brought cancellations and falling reservations. The airline also=20
will fly smaller aircraft to Amsterdam and Rome. Continental has also=20
scrapped the four flights it had to Hong Kong each week, until at least=20
June 1. "We think the bookings were down because of SARS," said spokesman=20
Rahsaan Johnson, referring to the new respiratory virus that began in Asia.

This summer, Houston-based Continental plans to reduce capacity systemwide=
=20
by 2 percent, but will continue serving all current destinations, Johnson=20
said. The airline, the No. 5 U.S. carrier, also plans additional layoffs in=
=20
addition to the 1,200 job cuts announced last month. Donald Scarry,=20
principal economist at New Jersey Economics in Mount Laurel, said the war=20
may ultimately bring more travelers to the airport. "When the war stops and=
=20
we hit the reconstruction phase, Newark will be a particular beneficiary"=20
because that will involve many businesses based in the Northeast that will=
=20
be flying overseas, Scarry said.

A comparison of the number of flights and passengers at Newark Liberty=20
International
Passengers      2003            2002
January         2,073,698       2,038,747
February        1,926,024       1,920,925
March   n/a *           2,,559,520

Flights         2003            2002
January         32,919          33,025
February        28,837          30,775
March   n/a *           34,172

Source: Port Authority of New York and New Jersey.
* =3D Not available.


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