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Travel Agency Although business travel by air is projected to increase 10 to 15 percent in the next year, it will not be enough to salvage an industry going bankrupt.

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Aloha Airlines Oct 22, 2004 (AXcess News/SHFW) Washington - Although business travel by air is projected to increase 10 to 15 percent in the next year, it will not be enough to salvage an industry going bankrupt, according to a report released Wednesday.

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Travel Agent The Business Travel Coalition said that low-cost carriers such as Southwest, AirTran and JetBlue are attracting increasing numbers of business travelers from older "legacy" carriers such as Delta, Continental and United.

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Travel Agents "We may travel much more, but we're not paying the fares we used to pay because we can't afford it," said Peter Buchheit, director of travel and marketing for Black & Decker, of Towson, Md. Buchheit said that, while Black & Decker employees formerly traveled on Delta Airlines, nearly 80 percent of their flights are now booked on AirTran.

Discount Airfares Once ridiculed by major airlines as "cattle cars," low-cost carriers have been a significant threat to the industry's Big Six legacy airlines since the mid-1990s. Often, the Big Six are forced to match prices with low-cost carriers in markets that were once monopolies.

Travel Deals Additional factors, such as oil prices, pilot pension costs and technological alternatives to travel have undermined commercial airlines, said coalition Chairman Kevin Mitchell.

Air Fares "Virtually every forecast since 2000 or 2001 by analysts has been too rosy," he said. "Often by billions of dollars."Advertisement

Travel Insurance Mitchell called for a "deeper airline restructuring" if legacy airlines are expected to last, even through 2005. He asked Congress to provide aid to the industry, citing a deeper economic impact to all sectors of travel and business, including hotels and rental cars, if airlines fail.

Travel State Gov "Virtually everybody missed the drop in yields, and there's too much capacity in the system," said Vaughn Cordle, chief analyst for Airline Forecasts, a Washington-based research organization. He said congressional action was "highly unlikely" for political reasons.

Travel Trailer Cordle also said that business customers, who used to make up 60 to 70 percent of air travel, account for only 30 percent of tickets today.

Ata Airlines "I believe that the best place for the industry workouts is in the bankruptcy courts. If the fuel prices stay above $50 per barrel, you

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