Cancelled, Perhaps for Good

Dozens of cities are impacted by Friday's FAA decision to allow Airlines to Stop Regional Service.

American Flights Cancelled

  • Worcester, Massachusetts
  • Aspen Colorado
  • Eagle, Colorado

Delta Flights Cancelled 

  • Erie, Pennsylvania
  • Flint, Michigan
  • Lincoln, Nebraska
  • Williston, North Dakota

United Flights Cancelled

  • Fairbanks, Alaska
  • Kalamazoo, Michigan
  • Myrtle Beach, South Carolina

60 Cities Under Review

Those are some examples. The airlines have targeted 60 cities. 

An objection period lasts through next Thursday when the transportation department will make a final ruling.

Should Airlines Cancel Flights?

Yes. Airlines should decide, not the government. 

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But under the "Cares Act" airlines had to keep a minimum number of flights to locations that it had served before the pandemic hit.

However, the "Cares Act" allowed for exceptions. 

Expect about 60 exceptions. 

Cities will not completely be without nearby service. For example, Worcester, Mass., is a little over an hour’s drive from Boston Logan. 

Regional Impact

Customers will be inconvenienced a bit, having to drive an additional hour or two (we will find out the details shortly).

But the regional businesses, including car rental companies, nearby restaurants, nearby hotels, and all the people working at such places will take a hit.

No V-Shaped Recovery

Factor in local disruptions, with a general overall change in attitudes towards leverage, eating out, business travel, and working at home.

The combination is nasty. The recovery will be shallow and take years.

Global COVID-19 Risk Ranges Up to $82 Trillion

For further discussion, please see Global COVID-19 Risk Ranges Up to $82 Trillion

Mish

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