No. of Recommendations: 2
The June 9 issue of Business Week has an article indicating that airlines are pursuing every possible cost cutting measure in these days of low travel and big losses.

One is they are applying pressure on their airports--where they pay huge fees for gate privileges and services--to reduce fees. They are even threatening to close hubs and move if this does not happen. So far airports have tried to co-operate by laying off employees to reduce costs.

Overall this points up the risk of investing in revenue bonds. If the airlines pull out and revenues to cover the bonds come up short, can tax payers be counted on to repay the bonds when they are due?

Caveat emptor!!
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