Home Economy Turmoil deepens in US air industry

Turmoil deepens in US air industry

By IRNA

New York : The turmoil in the US airline industry deepened as the fourth US low-cost carrier in less than a month filed for bankruptcy, and American Airlines cancelled nearly 600 additional US flights for inspections.

In all, American has canceled more than 3,000 flights this week, in a wave that began Tuesday.

The actions, coupled with earlier cancellations at other airlines, have left passengers stranded coast to coast, disrupted businesses and tapped a deep well of ire against the airlines.

Earlier this week American, the world’s largest carrier, said that it would face tens of millions of dollars in new costs to pay for the grounding of its Boeing MD-80 aircraft to inspect wiring and reimburse passengers.

The industry troubles continued as Frontier Airlines Holdings became the latest budget carrier to file for bankruptcy protection.

Frontier, based in Denver, said it had filed for protection after its main credit card processor tried to hold back substantial proceeds from its ticket sales. But the airline said it would continue to operate its full schedule of flights and honor ticket reservations.