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Automatic Cuts Would Hurt Air Traffic, Industry Says

Automatic U.S. government-spending cuts scheduled to take effect next year could reduce airline traffic by as much as 10 percent or impose crippling delays for decades, according to a study commissioned by industry groups.

The cuts, known as sequestration, would take effect Jan. 2 if Congress can’t agree on a deficit-reduction plan. It would prompt thousands of job losses and billions of dollars in economic losses to the civilian aviation industry, the report released today by the Aerospace Industries Association and other groups said.