House committee passes airline aid package

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House committee passes airline aid package
 <mailto:jseiberg@thedailydeal.com> by Jaret Seiberg
Updated 08:10 PM EST, Oct-2-2002


 =20

WASHINGTON =97 Bowing to fierce industry pressure, the House
Transportation aviation subcommittee voted Wednesday, Oct. 2, to extend
terrorism insurance and provide more financial relief to airlines.=20

The unanimous voice vote was mostly symbolic. The legislation has little
chance of enacting its plans in the few weeks Congress has left before
it adjourns for the fall elections. The Senate has not acted on a
similar measure and lawmakers still must pass the various appropriations
bills for the fiscal year that began Tuesday, Oct. 1.

The aviation bill would reopen the government's $10 billion loan
guarantee program if the United States attacks Iraq; continue the $100
million limit on each airline's liability from a terrorist attack;
extend the terrorism insurance program for airlines; and establish a
deadline for the U.S. Postal Service to determine how to screen mail so
it could be carried on commercial jets.

"Simply put: the airline industry continues to struggle with rising
security costs and shrinking revenues," said Rep. John Mica, R-Fla., and
chairman of the subcommittee. " One major carrier has already filed for
bankruptcy and others may soon follow... This legislation will cut
costs, fairly share the security burden, and help bring airline workers
back to work without raiding the taxpayer=92s pocketbook."

The vote came on the same day that airline executive pleaded with the
Senate Commerce Committee for relief.=20

"We request for relief from the government-imposed consequences of the
war on terrorism now uniquely borne by the airline industry," Delta
Airlines Chairman Leo F. Mullin said. "Because the repercussions of 9/11
have extended beyond anyone's expectations, our industry is experiencing
an unprecedented financial crisis."

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