In spite of major cutbacks in service and heavy lay offs of airline personnel, officials at Rio Grande Valley airports say Continental Airline's announcement last week that it is downsizing service nationwide will not effect the company's service in the Rio Grande Valley. However, Continental's home base in Houston will be hit hard. The air carrier announced Thursday it is slashing eight percent of available seats in Houston. Hubs in Newark and Cleveland will also see cuts. And nine smaller cities will lose Continental service altogether. But service in McAllen, Brownsville, and Harlingen will not be affected. Continental services all three major airports in the Valley. Air carriers nationwide have been hit hard by both the escalating cost of jet fuel and by a shrinking demand for air service because of an unstable economy. But that development is offset by the arrival of the summer travel season and, to a lesser degree, because of the government's tax rebate program this summer. The rebates were touted as a way to stimulate spending among American consumers as a counter-measure to the sluggish economy. Economists are now saying with less air service available to passengers, many Americans who were planning on spending their rebates on vacations and travel may now opt to redirect those funds toward reducing credit card debt and to aid in mortgage management, a development the Bush administration had hoped to avoid. The administration argues that the stimulus rebates can only help the economy if consumers spend it, flooding the retail market with buyers. Using the funds to arrest debt, they say, will fail to provide for more spending in the marketplace. Because of the airline cutbacks in recent days and weeks, and the potential for more to come, summer travelers are advised to make reservations early and to check back periodically for cancellations or changes in flight itinerary. While airline cutbacks may discourage travelers from flying this summer, economists are suggesting highways may become busy with families and travelers who opt to drive to their destinations instead of fly. They say while gasoline prices are expected to continue a slow rise throughout summer, travelers at least won't need to worry about airline woes affecting their summer travel schedules.