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Traveler's Aid: Airline Restructuring (8/16/02)

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Diana Nyad chats with Marketplace business analyst, and longtime airline industry observer, David Johnson about what this week's news from USAir, United and American means about the direction of the industry. David says we'll see airfare wars with ailing carriers desperate to get people in seats after the Labor Day travel slowdown. He also explains to Diana the dichotomy of the airlines moving away from the hub-and-spoke network. On the one hand, it will give travelers more options for direct flights, but it will make traveling less convenient. It also saves money, but is more expensive. Ultimately, if the airlines arenít able to return to profitability, we could see the industry get re-regulated. Stay tuned...

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