Crash piles ‘misery upon misery’ for airlines - experts

The American Airlines crash in New York will have a disastrous effect on the airline industry whether it was caused by a terrorist attack or not, aviation experts said today.

The global aviation industry is already suffering huge losses as a result of the September 11 terrorist attacks on New York and Washington.

A steep fall in passenger numbers, increased security costs and the cancellation of flights in the immediate aftermath of the attacks have all hit the industry hard.

Phil Butterworth-Hayes, civil aviation editor of Jane’s Information Group, said the crash would have serious financial implications for every airline.

And he warned it would pile ‘‘misery upon misery’’ on British Airways, which is in partnership with American Airlines and has announced thousands of job losses in the wake of September 11.

He said: ‘‘This crash will have a huge knock-on effect for the airline industry. Confidence in air travel was badly dented after September 11 and it will be even more so now.

‘‘It will be misery upon misery for British Airways especially because it has a substantial partnership with American Airlines.’’

American Airlines, which lost two planes on September 11, was already facing massive losses before today’s crash and is currently reliant on a multi-million dollar bail-out package from the US Government.

The US airline could be crippled if relatives of the passengers sue for damages, he said.

‘‘A lot depends on what actually caused this crash. But if the airline is found in any way culpable for a security or maintenance lapse, the relatives of the deceased could take them to court.

‘‘American Airlines has already taken a big hit with September 11. A crash of any nature has a very large effect on an airline and American Airlines will not be the same after this crash.’’

Jennie Campbell, transport analyst with City fund managers Gerrard, said all airlines would suffer as a result of the crash.

‘‘Even if they are able to prove there was no terrorist connection, this will dent people’s confidence.

‘‘It was a relatively new plane, used international-wide, and people would have expected them to be reasonably safe.

‘‘If it was not a terrorist attack then it is extremely bad timing because it is going to reinforce people saying they are not going to fly unless they absolutely have to.

‘‘BA will be hit because of its relationship with American Airlines but I think it’s going to be hard for all airlines.’’