FAA Aviation Forecast Conference Proceedings (16th)
FEDERAL AVIATION ADMINISTRATION WASHINGTON DC OFFICE OF AVIATION POLICY AND PLANS
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On August 2, 1990, Iraq invaded Kuwait. With the resultant U.S. military build-up, the Civil Reserve Air Fleet CRAF program activated approximately 50 U.S. air carrier aircraft on August 17 for the first time since the program was instituted in fuel doubles, from fifty-five cents in July to one dollar and eleven cents in October. The U.S. airlines were unable to increase their operating revenues to match the unanticipated jump in operating expenses. As a result, many airlines found themselves in financial difficulty. Continental Air Lines field for bankruptcy on December 3rd, with Pan American filing on January 8th. In fact, ATA estimates an industry loss of over 2 billion in calendar 1990. Depending on the length and severity of the current crisis, the much discussed, steady consolidation of the industry could be accelerated.
- Commercial and General Aviation