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Carriers on the brink.

Article Excerpt
Ranging from country-specific warnings to bans on all non-essential travel, corporate security policies issued in light of the war in Iraq are exacerbating chronic airline problems at a critical juncture for industry restructuring.

Much of the ailing U.S. commercial aviation sector is on the brink of disaster, with a UAL Corp. liquidation and an AMR Corp. bankruptcy as possibilities by the summer. Uncertainty around the war, global terrorism, economic recovery and further corporate travel restrictions triggered last week will accelerate deteriorating airline revenue and traffic trends, but it is unclear to what degree and for how long.

Several travel managers told BTN their companies have not yet restricted travel but stand ready to do so should events warrant, while others said all non-essential travel has been grounded, at least for the moment. Many are relying on the federal government for guidance.

"We are following the State Department. Right now it still is just a caution, but if that changes we will follow whatever recommendation is provided," said Cindy Heston,...

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