CNNMoney.com
Companies Economy International Corrections Pre-market Trading After-hours Trading Winners/Losers/Actives Bonds Currencies Commodities World Markets Money Magazine Real Estate Taxes Jobs Ask the Expert Money 101 Autos Mutual Funds The Help Desk Loan Center Best Places to Live Ask the Expert Ultimate Guide to Retirement Retirement Calculators Best Funds Best Places to Retire Fortune Brainstorm Tech Apple 2.0 Blog Big Tech Blog Sectors and Stocks Tech Talk Resource Guide Small Business Makeovers Questions & Answers Small Business Video 100 Best Places to Launch FSB 100 Fortune Small Business Fortune 500 Brainstorm Tech Investing Management C-Suite Rankings Main Create Portfolio Edit Portfolio Create Alerts Edit Alerts

More air travel misery on the way

As the economy picks up, so will air travel. That could mean more delayed flights, according to a new report by the Brookings Institution.

EMAIL  |   PRINT  |   SHARE  |   RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
By Aaron Smith, CNNMoney.com staff writer

Do you expect to be better off financially in 2010?
  • Yes, a lot
  • Yes, a little
  • About the same
  • No, worse off

NEW YORK (CNNMoney.com) -- If you think flying is a miserable experience now, just wait until 2010.

Air travel has been declining since 2008 as a result of the recession. But it is expected to pick up next year, resulting in more headaches for travelers, according to a study released Thursday.

The study from the Brookings Institution, a nonprofit public policy organization based in Washington, said the downturn in travel has a "silver lining of freeing up airport capacity and improved on-time arrival rates. But these silver linings will disappear...in 2010."

The result: More delays.

This adds to the current hardship of traveling, considering that in every year since 2000, at least 15% of flights have been delayed at least 15 minutes, the study said.

Part of the problem is the "antiquated" air traffic control system, and the difficulties in establishing the more advanced Next Generation Air Transportation System, or NextGen, which is still three to nine years away from implementation, according to Brookings.

"Once reason that policymakers can feel confident that such performance will continue to suffer is the reality that the same antiquated air traffic control system will be in place to manage our every-busier skies," the study said.

High-speed rail could free the skies

Air passenger travel in 2008 and 2009 has suffered its most significant declines since the terrorist attacks of Sept. 11, 2001, and the recession is to blame, reported Brookings.

Air travel in the United States experienced its first annualized drop in September 2008 since the World Trade Center and Pentagon attacks of 2001, and these declines continued through March 2009, according to the most recent data from Brookings.

This is in stark contrast to the gains that occurred between 1990 and 2008, when U.S. airports increased passenger and flight levels by 60%, the institute said.

Brookings offered several solutions to alleviate air travel congestion when it picks up again, including increased investment in rail corridors. This would help free up the skies, the study said, noting that half of all flights are between cities that are less than 500 miles apart.

The challenge for high-speed rail travel is that it must be able to compete with air travel. The study noted that "at distances of less than 400 miles high-speed rail can meet or beat air travel times, while the capability wanes up to and past 500 miles."

As part of his stimulus plan, President Obama is pledging $13 billion into an ambitious high-speed rail project.

David Castelveter, spokesman for the Air Transport Association, the airline industry group, said that cutting capacity is not the problem, because it occurs on the "least popular routes." Also, he said the airline industry is reluctant to end short-range flights.

"We can continue to serve the small communities we serve today, and not eliminate it, as these studies suggest," he said.

Castelveter said the air traffic control system must be modernized. A change from radar to digital satellite technology would reduce the spacing between flights and relieve congestion, he said.

"Whether it's next year, or [the next] two years, the economy will ultimately recover and the industry will attempt to grow," Castelveter said. "Our great concern is the fact that this government has yet to move forward aggressively with modernization of the air traffic control system."  To top of page

Features
Markets Last Change
Dow Jones 10,318.16 -14.28 / -0.14%
Nasdaq 2,146.04 -10.78 / -0.50%
S&P 500 1,091.38 -3.52 / -0.32%
10-year Bond 100 2/32 Yield: 3.36%
U.S.Dollar 1 euro = $1.486 -0.005
November 20, 2009 12:00 AM ET
CompanyPrice% Change
D.R. Horton Inc 10.44 -14.78%
Dillard Department Stores Inc 15.67 9.73%
YRC Worldwide Inc 1.24 9.73%
Dell Inc 14.45 -8.95%
Nov 20 3:53pm ET †
More Galleries
Most (and least) affordable cities to buy a house Here are the 5 metro areas where the average American family can afford to purchase a median-priced home -- and the 5 where they can't. More
Heroes of the Economy: Where are they now? In March, CNNMoney profiled people making personal sacrifices to help others during the recession. Did their efforts pay off? CNNMoney checks in. More
11 big Black Friday deals An early peek at holiday ad circulars shows that post-Thanksgiving shoppers can score crazy deals -- like an LCD HDTV for half price, or a Nikon camera marked down 40%. More
Sponsors

© 2009 Cable News Network. A Time Warner Company. All Rights Reserved. Terms under which this service is provided to you. Privacy Policy
Copyright © 2009 BigCharts.com Inc. All rights reserved. Please see our Terms of Use.
MarketWatch, the MarketWatch logo, and BigCharts are registered trademarks of MarketWatch, Inc.
Intraday data provided by Interactive Data Real-Time Services and subject to the Terms of Use.
Intraday data is at least 20-minutes delayed. All times are ET.
Historical, current end-of-day data, and splits data provided by Interactive Data Pricing and Reference Data.
Fundamental data provided by Morningstar, Inc..
SEC Filings data provided by Edgar Online Inc..
Earnings data provided by FactSet CallStreet, LLC.