SBTV.com is a small business where employees log a lot of air miles. SBTV.com CEO Susan Wilson Solovic and our team of journalists and contributors seem to be in constant motion and in the air covering the stories of the nation's small firms. Getting to these stories has become more difficult. Many airlines are reducing routes, cutting capacity on remaining flights and increasing fares. Analysts say fewer people will be able to fly in the near future and some cities may lose air service as a result of the changes.
A new study issued this month by the Business Travel Coalition and Airline Forecasts finds more turbulence ahead for business travelers. In fact, researchers describe it as a "catastrophe." The study finds $130 barrel oil prices will increase yearly airline costs by $30 billion, while airlines will be able to generate only $4 billion in fare increases and incremental fees. The researchers say as a result several large and small airlines will end up in bankruptcy, and of those, some will be forced to liquidate. A full copy of the study is available free online.
These changes and challenges in the air are under review by lawmakers. The House Committee on Small Business will hold a hearing tomorrow on the problems. The session is titled: "How the Air Transportation Crisis is Hurting Travelers, Entrepreneurs and the Economy." The hearing will take place in Room 1539 of the Longworth House Office Building. The Committee will examine how increases in airfares and flight delays are impacting travelers, small firms and the economy. The Congressional panel will receive testimony from the travel industry, airlines and business travelers. Look for updates in daily news on SBTV.com