U.S. airlines issue a warning on the negative impact of a government shutdown

Groups representing U.S. airlines and travel associations have issued a warning to congressional leaders on the impact of a U.S. government shutdown.

“Government shutdowns harm the U.S. economy and degrade the redundancies and margins of safety that our National Airspace System is built upon,” wrote the Modern Skies trade group. “In fact, short-term shutdowns of just a few days, or even threatened shutdowns that are averted in the eleventh hour, negatively affect the NAS and the traveling public,” read the warning.

Shutdowns were noted to be extremely detrimental to the passengers and shippers as well as the aviation community because they force the FAA to, among other things, suspend air traffic controller and technician hiring and training, delay the implementation of safety initiatives, postpone maintenance and repair work to critical air traffic equipment, suspend air carrier pilot check rides, delay airworthy inspections for aircraft, defer the analysis of voluntary safety reporting, and suspend work on modernization programs.

The letter also pointed out the broader economic risk of a U.S. government shutdown, noting that the U.S. aviation industry contributes more than 5% of GDP and supports over 10 million jobs. The group said that a 35-day shutdown in 2018-2019 cost the economy $3 billion in lost activity that was never recovered, according to the Congressional Budget Office.

Airline stocks: American Airlines (AAL), Delta Air Lines (DAL), Southwest Airlines (LUV), United Airlines (UAL), JetBlue Airways (JBLU), Alaska Air Group (ALK), Allegiant Travel (ALGT), Spirit Airlines (OTC:SAVEQ), Mesa Airlines (MESA), SkyWest (SKYW), Sun Country Airlines (SNCY), and Frontier Group (ULCC).

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