ARE TRAVEL MANAGERS PREPARED FOR THE
POSSIBILITY OF AIRLINES FILING CHAPTER 11?


(November 2002) United Airlines' recent application for a loan guarantee through the Air Transportation Stabilization Board has raised some questions about possible airline bankruptcies, the government's role, and the overall affect on corporate travel. The following responses reflect the opinions of ACTE members based in the United States:

  1. Are you in favor of an immediate loan guarantee from the federal government to United Airlines, and to all carriers that meet the guarantee criteria?

    2. 38% Yes
    55% No

  2. Do you think if the Air Transportation Stabilization Board (ATSB) approves the loan guarantee for United Airlines, it will prevent the airline from filing Chapter 11?

    3. 39% Yes
    61% No

  3. Do you think that loan guarantees should be available for other segments of the business travel industry (hotels, surface transportation, and support services who depend on business travel)?

    4. 17% Yes
    83% No

  4. Do your airline agreements include a requirement for the carriers to maintain the same level of service throughout the term of the agreement?

    5. 50% Yes
    50% No

  5. Have you requested a shorter termed agreement from your airline partners?

    6. 11% Yes
    16% Not yet, but we intend to
    73% No

  6. Do your airline agreements include a provision that in the event your company fails to meet its market share goals, the airlines' sole and exclusive recourse is to terminate the agreement upon written notice to you?

    7. 53% Yes
    47% No

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