(IATA)-member carriers have increased dramatically since Sept. 11, 2001. IATA economists predict better times in the near future for European carriers. European carriers are recovering faster than post-Sept. 11th U.S. Carriers. .
European air traffic is estimated to increase 4-5% on European routes; however, the war with Iraq could drastically alter those numbers. If the conflict with Iraq is prolonged American Society of Travel Agents is preparing for a 15-20% decrease in travel to Europe from the United States. Nearly all passenger and cargo airlines are predicted to see decreases in yields and volumes.
The IATA is planning on diversions of routes around the Middle East. Months of reduced traffic should be able to be handled by most airlines due to increased cash reserves in 2002. Unfortunately, some airlines are not in financial shape to deal with reduced traffic. These carriers are most likely to fail or require serious restructuring. Hopefully the war in Iraq will be short and the airlines will not be too negatively affected.
Although fuel costs and terrorism are a huge challenge for the industry, one of the biggest challenges is unit labor costs and unfunded government mandates plus extra security requirements. The war with Iraq hit during a time of a fragile industry recovery. Whether long or short, the war will dramatically affect the industry and those working in it. .
After Sept. 11th and due to the war with Iraq, many commercial aerospace jobs are disappearing; however, jobs in the defense sector are becoming more available. Both the Joint Strike Fighter (JSF) and new requirements in homeland security are opening up more jobs in the defense sector of the aerospace industry. Although the rise in defense sector jobs can not make up for the downsizing of commercial aerospace jobs, it is still comforting knowing that there are people out there hiring. There are a few issues that complicate hiring in the defense sector.