US airlines are warning that a war in Iraq will create "serious risk" of mass industry bankruptcy and liquidation and are asking for a "holiday" from $9 billion in annual taxes if war breaks out.
The US Air Transport Association (ATA) released a report last week predicting disaster for already suffering US airlines if war goes ahead.
"Without government action, the outlook for the airline industry is bleak," says ATA president and chief executive James May.
Airlines want taxes to be waived from when any war begins until a year after the conflict concludes.
ATA's "most likely" scenario in the event of a war is industry-wide losses of $10.7 billion for the year.
US House of Representatives aviation subcommittee chairman John Mica warns airlines that budgets are constrained and tax relief may not be possible. "While we are sympathetic, realistically there is only so much we can do," he says.
Source: Flight International
