Group to ask Congress for plan in case of failures

Tuesday, Oct. 12, 2004 | 10:49 a.m.

A group representing business travelers is expected to ask Congress today to draft plans in the event that several major airlines are forced to liquidate.

The group, the Business Travel Coalition, said in a statement that the country must be prepared for a "catastrophic failure" of the industry and urged lawmakers to authorize the National Academy of Sciences to develop policies that could be put in place should the industry reach such a crisis point.

Without action now, the federal government could be overwhelmed by the demands of airlines, their unions, investors, airports and others affected by the industry's crisis, said Kevin P. Mitchell, chairman of the group.

He noted that half of the traditional airlines could be operating under bankruptcy protection within a month, and the level could increase to 70 percent by the end of 2005.

US Airways and UAL Corporation's United Airlines are already bankrupt, and Delta Air Lines could file for Chapter 11 as soon as this month unless it is able to slash its costs.