Impact on Federal Government if the Combined Continental Airlines and Texas International Airlines Fail To Meet Financial Obligations

GAO was requested to obtain information on the potential financial loss to the Federal Government if the combined Continental Airlines and Texas International Airlines fail to meet their financial obligations. The report addressed the following subjects: (1) essential air service to the Pacific; (2) aircraft loan guarantees; (3) potential revenue loss to the Treasury; and (4) the Airline Employee Protection Program.