Impact on Federal Government if the Combined Continental Airlines and Texas International Airlines Fail To Meet Financial Obligations
CED-82-33: Published: Feb 3, 1982. Publicly Released: Feb 16, 1982.
Additional Materials:
- Full Report:
Contact:
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.
The Airline Deregulation Act of 1978 guarantees essential air transportation for any point in the United States to which any carrier:(1) is providing service pursuant to a certificate issued under the Federal Aviation Act, or (2) is authorized by that certificate to provide service, but the service was suspended on the Airline Deregulation Act's date of enactment. The Federal Aviation Administration operates a statutory aircraft and equipment loan guarantee program and the Federal Government is authorized to guarantee loans for the purchase of aircraft and spare parts. Should Continental Airlines go out of business, the tax revenue loss to the Federal Government, in the opinion of GAO, will be less than the tax revenue generated by the services Continental provided. Much of this revenue would likely be provided by other airlines who picked up the foregone services. Even if the other airlines stepped in, the labor, capital, and other resources currently employed by Continental would transfer eventually to other occupations and provide tax revenue to the Treasury. The Airline Deregulation Act provides a protection program for airline employees who either lose their jobs or have their pay reduced as a result of deregulation, with the exception of certain classes of employees. Congress enacted the Airline Employee Protection Program because it believed cessation of 40 years of airline economic regulation might result in temporary adjustments in the labor requirements of some air carriers.
Jan 7, 2021
-
Aircraft Noise:
Better Information Sharing Could Improve Responses to Washington, D.C. Area Helicopter Noise ConcernsGAO-21-200: Published: Jan 7, 2021. Publicly Released: Jan 7, 2021.
Dec 18, 2020
-
Automated Technologies:
DOT Should Take Steps to Ensure Its Workforce Has Skills Needed to Oversee SafetyGAO-21-197: Published: Dec 18, 2020. Publicly Released: Dec 18, 2020.
Dec 17, 2020
-
Emergency Responder Safety:
States and DOT Are Implementing Actions to Reduce Roadside CrashesGAO-21-166: Published: Dec 17, 2020. Publicly Released: Dec 17, 2020.
Nov 24, 2020
-
Reagan National Airport:
Information on Effects of Federal Statute Limiting Long-Distance FlightsGAO-21-176: Published: Nov 24, 2020. Publicly Released: Nov 24, 2020.
Nov 19, 2020
-
Federal-Aid Highways:
States and Local Governments Reported Benefits to Federal Highway Fund Swapping, but Impacts Cannot be Definitively DeterminedGAO-21-88: Published: Oct 20, 2020. Publicly Released: Nov 19, 2020.
Nov 16, 2020
-
Aviation Certification:
FAA Needs to Strengthen Its Design Review Process for Small AirplanesGAO-21-85: Published: Nov 16, 2020. Publicly Released: Nov 16, 2020.
Nov 9, 2020
-
Aviation Safety:
FAA's Office of Aviation Safety Should Take Additional Actions to Ensure Its Workforce Has Needed SkillsGAO-21-94: Published: Nov 9, 2020. Publicly Released: Nov 9, 2020.
Oct 29, 2020
-
Puerto Rico:
Perspectives on the Potential to Expand Air Cargo OperationsGAO-21-21: Published: Oct 29, 2020. Publicly Released: Oct 29, 2020.
Sep 30, 2020
-
Supplemental Material For GAO-20-686:
Transit Asset Management: Survey of TAM Program ParticipantsGAO-20-687SP: Published: Sep 30, 2020. Publicly Released: Sep 30, 2020. -
Transit Asset Management:
FTA Should Clarify Performance Data and Develop a Plan to Guide Future Program ImprovementsGAO-20-686: Published: Sep 30, 2020. Publicly Released: Sep 30, 2020.
Looking for more? Browse all our products here