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"House Aviation Subcommittee Approves GA Relief Bill With GA Airport Provisions"

Thursday, December 13, 2001

House Aviation Subcommittee Approves GA Relief Bill With GA Airport

The House Aviation Subcommittee has just approved H.R. 3347, the General
Aviation Industry Reparations Act.  During subcommittee action today,
the bill was modified to ensure that general aviation airports (the
subcommittee limited it to only those that are part of the National Plan
of Integrated Airport Systems) are eligible to receive any of the funds
made available under the legislation.  As you will recall from
yesterday's Alert, we were pushing for this modification.

The bill as passed by the subcommittee would provide $2.5 billion in
direct compensation and $5 billion in loan guarantees to fixed based
operators, flight schools, GA manufacturers, persons engaged in
nonscheduled commercial aviation enterprises, and GA airports part of
the NPIAS for direct losses incurred after September 11 because of
ground stop orders and for incremental losses incurred through December
31, 2001, as a result of the terrorist attacks.  The Subcommittee also
included changes today that set a deadline for the issuance of grants
and loans, requires reasonable assurances that loans will be repaid, and
limits executive compensation, among other things.

As we mentioned in yesterday's Alert, the prospects for passage of this
legislation are slim given its price tag.  The bill now moves to
consideration by the Transportation and Infrastructure Committee,
although it does not appear as if the full committee will have a chance
to act on the bill prior to the end of the session, which is expected
next week.  The bill was also referred to the House Financial Services
and Budget Committees for their consideration as well, adding even more
hurdles to moving the bill forward.

We'll keep you posted on any further developments.

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