Donald J. Carty, American Airlines Chairman yesterday told members of The Wings Club in Manhattan that the lessons of September 11 have changed the airline industry forever.

Carty said that American and the industry are still faced with formidable problems in a number of areas:

- Security. He said the government and the airlines must make sure that aviation security remained an important part of national security.

- Industry infrastructure. The lack of sufficient air traffic control capability, airports and runways remained a serious industry problem.

- Airline profitability. If airlines cannot begin to generate a reasonable return for their shareholders, they will not be able to invest in aircraft and facilities to help the airline industry re- energize the US economy.

- Supply and demand. Customers are coming back to the industry, but they are paying very low fares.

- Labor relations. Airlines and their unions need to find better ways to settle disputes, and the government may need to play a role.

- Consolidation. The large US carriers should be able to survive in the short term, but acquisitions of other carriers appear unlikely for a number of reasons.

http://news.airwise.com/stories/2002/02/1014211392.html