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Prognosis '96 Transportation


Industry Outlook -- Services: TRANSPORTATION

PROGNOSIS '96--TRANSPORTATION

Positives

-- Airline capacity should grow more slowly than traffic, meaning fuller planes and higher fares.

-- Railroads are boosting productivity with computerization and faster locomotives.

Negatives

-- Airlines will be hard-pressed to win cost reductions from labor when profits are soaring.

-- The trucking industry is suffering from excess capacity.

-- Railroads have yet to sign contracts with about a dozen unions.Return to top

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