By BJ Austin
http://stream.publicbroadcasting.net/production/mp3/kera/local-kera-709911.mp3
Dallas, TX – American Airlines CEO Gerard Arpey says the layoffs will be in the thousands as the airline cuts service to offset the skyrocketing cost of fuel. University of North Texas economist, Dr. Bernard Weinstein says all of North Texas will feel American's pain.
Weinstein: "This could be a pretty serious hit; not just because of any direct job losses associated with American's layoffs -- but the indirect or the multiplier effect because they a big player in the community. They do a lot of procurement in the Dallas Fort Worth area."
But Dr. Weinstein believes the region can weather the hit without too much disruption. He says that's not the case with the airline industry - which he says cannot survive in its current form. He sees more mergers and bankruptcies.
Weinstein: "It would not surprise me if a couple of years from now there are only two or three major airlines left in the United States and at that point there will be a call for re-regulation."
Dr. Weinstein says that means the government will set fares a lot higher. He says, in any event, the days of cheap air travel are over.