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Newspaper
Southern Illinoisan
Location
Carbondale, Illinois, United States of America
Date
Sep 23, 2001
Page
30
Boeing executives steer a safety and reassurance push to revive air travel and restore confidence amid large layoffs and industry losses. Mulally urges passengers to fly, cites safety campaigns, and outlines plans to redesign planes and seek federal aid while noting airlines fly less than 80 percent of schedules.
BoeingCo agreed to pay 92.5 million to resolve a 1997 class action alleging it doctored financial records to hide production problems before its McDonnell Douglas merger. The suit followed plans to recover production after suspending 747 and 737 Next Generation lines, triggering a 1.6 billion charge and a stock drop.
Northwest Airlines announced a 10 000 job reduction, about 19 percent of its workforce, amid post September 11 layoffs. The carrier will slash service by 20 percent, joining Boeing and other airlines in payroll cuts since the attacks, while Delta signals possible future cuts.
Washington reports a rise in credit card delinquencies with 30 or more days past due at 3.93 percent in April to June, up from 2.99 percent in January to March, signaling strains from weakening economy and job cuts.
Boeing's Sonic Cruiser, a bold next generation airliner, could benefit as a deep industry downturn prompts layoffs and lower demand for superjumbo jets. Analysts say aviation's altered outlook may boost the concept as Airbus faces market shifts and airline caution.
Airlines warn travelers to expect tighter security and new rules. Curbside check in ends, off site baggage check stops, and random bag searches may occur. Electronic tickets stay valid but some airports require counter check in. Two to three hours now advised for domestic and international flights. Airlines offer refunds or free rescheduling for trips through late September. Some fares fall later, with Get America Flying promos noted.
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