NYTimes.com Article: Airlines Ask for More Money, Citing Higher Security Costs

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Airlines Ask for More Money, Citing Higher Security Costs

September 25, 2002
By THE ASSOCIATED PRESS






WASHINGTON, Sept. 25 (AP) - The airlines asked Congress for
financial help today, saying security costs imposed after
the terrorist attacks are hampering their recovery.

Little more than a year after the government gave the
airlines $5 billion in cash, airline executives asked the
House aviation subcommittee to consider tax relief,
reimbursement for security costs and an extension of the
terrorism insurance policies issued by the government after
the attacks.

Leo F. Mullin, chief executive of Delta Air Lines, said
about 40 percent of the industry's expected losses of as
much as $7 billion this year could be attributed to
security costs.

Subcommittee members said they were willing to give the
airlines some temporary help in a bill they are considering
this week, but some lawmakers said the industry brought
some of its problems upon itself. "The carriers seem unable
to muster the discipline to reasonably price their
product," said Representative James Oberstar, Democrat of
Minnesota.

The airlines blame lower passenger volume and higher fuel
and security costs for expected losses of $6.8 billion to
$7 billion this year.

They also hope Congress will lower the amount they are
required to repay the government for the costs of screening
passengers and baggage.

Before Sept. 11, airlines paid for security. After the
attacks, the government took responsibility and airlines
agreed to reimburse the cost.

The airlines told the Transportation Security
Administration that they spent about $300 million on
security in 2000. But the Transportation Department's
inspector general said that the big airlines said before
Sept. 11 - and testified twice afterward - that they spent
$1 billion annually on security.

Michael Wascom, spokesman for the Air Transport
Association, a trade group, said the $1 billion figure was
only a rough estimate.

The airlines want temporary suspension of taxes and fees,
like the jet fuel tax, if the United States goes to war
with Iraq, Mr. Wascom said.

They also want more money for retrofitting cockpits with
bulletproof doors. Although the government will pay about
$14,000 a door, the cost is about $45,000, he said.

The airlines want the government to take responsibility for
screening caterers and food carts loaded onto airlines, Mr.
Wascom said. Now, he said, only minimal screening is done.

Finally, the airlines will ask for no increase in the
$2.50 security fee travelers pay every time they board a
plane.

http://www.nytimes.com/2002/09/25/business/25AIR.html?ex=1033961385&ei=1&en=daa537e07d927a2c



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