"House Panel Approves Airport Aid"

Wednesday, October 2, 2002

House Panel Approves Airport Aid


WASHINGTON (AP) -- A key House panel approved a bill Wednesday to help
struggling airlines, but the effort may be too late to become law this
year as Congress nears the end of its session and the Senate hasn't yet
acted on a similar bill. 

The House Transportation Committee's aviation panel endorsed a package
of loan guarantees, terrorism insurance and new procedures to lighten
some security costs that airlines say are devastating the industry. 

Rep. James Oberstar, D-Minn., said the bill could save the industry $1.5
billion by extending government-sponsored terrorism insurance, fully
reimbursing the cost for bulletproof cockpit doors and allowing airlines
to carry mail. 

``(That's) half of what the airlines said they need to get on a stable
economic footing,'' Oberstar said. 

Leaders of some of the nation's largest airlines are asking Congress for
the aid, saying they expect to lose $7 billion this year because fewer
people are flying since the terror attacks of Sept. 11, 2001, and
because of security costs. 

Subcommittee Chairman John Mica, R-Fla., said the bill would cut costs,
share the security burden and help bring airline workers back to work
without raiding taxpayers' wallets. 

``If we fail to act, the airline industry could be another victim of the
Sept. 11th attacks,'' he said. 

The subcommittee agreed to extend the terrorism insurance policies
issued by the government after the hijackings last year and to limit to
$100 million each airline's total liability for people injured or killed
on the ground or in buildings during an act of terrorism. 

It also agreed to reopen a loan-guarantee program for financially
troubled airlines if the United States goes to war with Iraq. Should
Congress authorize force against Iraq and oil prices rise by 25 percent,
the committee voted to give them loan guarantees and lines of credit to
buy jet fuel. 

Another measure would bring in more money for airlines -- restoring
their ability to carry U.S. mail weighing more than 12 oz., which could
generate $305 million annually. Airlines were banned from carrying
heavier mail after the terror attacks. 

The committee also ordered the administration to reimburse airlines in
full for bulletproof cockpit doors. The airlines say the stronger new
doors cost $45,000 each. The administration is paying them a fraction of
that amount. 

The bill, supported by a unanimous voice vote of the panel's Republicans
and Democrats, must still be approved by the House Transportation
Committee and then the full House before it goes to the Senate. 

Rep. Bill Pascrell, D-N.J., said it was unlikely the bill will become
law because it's so late in the session. 

Addressing Mica, he said, ``You know and I know that this bill will
never see the light of day on the president's desk.'' 

On the Net: 

Web site for the House aviation subcommittee:
http://www.house.gov/transportation


 Do you have an opinion about this story?
Share it with other readers in our CAA Discussion Forums

http://www.californiaaviation.org/cgi-bin/dcforum/dcboard.cgi?conf=DCConfID8

*****************************************