At the beginning of 2008, ATA and the airlines were focused on helping Congress pass a meaningful FAA reauthorization bill to direct the modernization of the air traffic management system and to establish a fair funding mechanism in which all system-user groups pay proportionally for the services they use. In the end, however, Congress put off that debate until next year, extending the existing funding mechanism through March 2009.

As 2008 wore on, energy prices became the main focus. Skyrocketing energy prices and a slowing economy had a serious impact on all Americans and businesses, including airlines. Crude-oil prices peaked at $147 per barrel; unregulated oil speculation contributed significantly to this situation. While a slowing economy finally caused this bubble to burst, jet fuel prices remain more than three times 2000 levels. In the first nine months of 2008, U.S. airlines had already spent $4.4 billion more on fuel than they had in all of 2007.

These factors forced unprecedented efforts to reduce fuel consumption and increase efficiency. By December, capacity had been reduced more than 10 percent, with hundreds of airplanes parked and many capital projects shelved. Still, airlines have not come close to earning back the $27 billion in net losses incurred since 2000, and they are likely to lose another $5 billion in 2008.

In this tremendously difficult environment, ATA is calling on the government, as never before, to first "do no harm." More on this in the next installment.

And now, here's what was most important to YOU in 2008.