FAA’s ground stop affects more than just the airline industry

The computer outage forced thousands of canceled and delayed flights and that will impact more than just the airline industry.
Published: Jan. 11, 2023 at 4:51 PM MST
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PHOENIX (3TV/CBS 5) -When the nationwide ground stop was implemented early Wednesday morning and prevented planes from taking off, there were still plenty of other planes in the air, particularly on the East Coast.

But even after the ground stop was lifted and the air space saw more planes, the damage had already been done. “When incidents like this occur, every hotel and its managers have to figure out how to fill occupancy while dealing with last-minute modifications or cancellations,” Philip Ballard told On Your Side. He’s a travel expert and executive with HotelPlanner.

Ballard says events like Wednesday have a ripple effect and one of the first industries affected is the hotel industry. “Well, just think about one flight going to one city. Maybe it’s a group and there’s a room block of 30 or 40 people at one hotel. That affects the bottom line for that hotel that day. And multiply that times thousands and thousands of canceled flights.”

Besides hotels, Ballard says the ground stop also had a huge impact on car rental companies which had to scramble to accommodate postponed or canceled reservations. And just because the ground stop has been lifted, Ballard says there could be a lingering effect for a number of different industries. “What’s happening is that it’s causing a negative reaction for travelers who are thinking about traveling right now because they don’t want to deal with all these delays and disruptions, and they have just kind of had it,” he said.