The decline in business travel during the recession may have stung the airline industry, but it has absolutely pummeled the chauffeured limousine industry.

Over the last two years, about 45 percent of the nation's licensed limousine companies have gone out of business, said Scott Solombrino, president of Dav El Chauffeured Transportation Network, one of the world's largest limo companies. He estimates that about 5,000 firms operate today, down from about 9,200 two years ago.

Part of the decline can be attributed to tighter corporate travel budgets. But perhaps a bigger reason limo companies are hurting is because business executives don't want to be seen spending extravagantly. It's called the AIG effect, an expression coined after American International Group Inc. sponsored a luxury retreat just days after accepting a federal bailout.

"No one is in a hurry to have 100 limos parked in front of their Wall Street firm or hotel," Solombrino said.

- Hugo Martin, Los Angeles Times