"Senate May Consider Aid To Airlines Post-Katrina"

Wednesday, September 7, 2005

Senate May Consider Aid To Airlines Post-Katrina
By Denise Marois
Aviation Week


Several Senators yesterday said they are willing to consider helping
airlines that lost service because of Hurricane Katrina and also face
escalating fuel prices, though at least one key member contended it's too
soon to say whether a cut to jet fuel taxes is feasible. 

Sen. Conrad Burns (R-Mont.), chair of the Senate Commerce aviation
subcommittee said he's trying to schedule a hearing on what kind of
assistance to give airlines. Yesterday, the Senate Energy and Natural
Resources Committee, of which Burns is a member, held a hearing on the
rising cost of gasoline prices, and Burns said he hoped to address the
plight of airlines. Commerce Chair Sen. Ted Stevens (R-Alaska) said he could
seek to suspend the fuel tax for airlines, but that it's not in his
committee's jurisdiction; he doesn't plan any hearings that are not directly
related to helping victims of Katrina. 

Sen. John Cornyn (R-Texas), a member of Senate Budget said he is "certainly
amenable" to considering suspending the tax on jet fuel, but Senate Finance
Chair Sen. Charles Grassley (R-Iowa) said it's too soon to consider it.
"Right now, my approach to helping airlines is very generic," he said,
adding he wants to see what effect pension reform has on the industry.
"Another factor is we have only had a 30% increase in gasoline for one week,
so I want to see how long that is going to be kept up before we know the
impact." 

Grassley added he doesn't want to make public policy "based upon one week of
increases in prices. We didn't do that for the farmers when they were
getting $4.00 for a bushel of corn instead of $2.00 when we got a shortage
of corn," he said.


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

http://www.californiaaviation.org/dcfp/dcboard.php


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