Unions Prod Obama To Fix Ailing Airline Industry

JOAN LOWY

WASHINGTON (AP) — Three decades of airline deregulation have helped make air travel more accessible to consumers through lower fares.

Now labor unions are questioning whether the industry is paying the price, and the Obama administration is listening.

Transportation Secretary Ray LaHood was holding a forum Thursday to discuss the state of the airline industry, which is mired in a severe economic slump and blamed for using a business model critics say undermines safety. The industry has suffered repeated shocks in recent years, including the 9/11 terror attacks, the SARS virus, volatile oil prices and the current economic downturn.

"U.S. aviation is facing severe economic uncertainty, and an open and frank conversation will help begin a continuing dialogue about the industry's future," Transportation Department spokeswoman Sasha Johnson said.

Airlines are offering the fewest seats to passengers, measured by available seats and distance traveled, in more than a decade. They have shed more than 158,000 full-time jobs since employment peaked in 2001 and lost an estimated $33 billion over the past decade. Thirteen airlines have filed for bankruptcy in the past two years.