=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SF Gate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2002/10/02/n= ational1459EDT0678.DTL ---------------------------------------------------------------------- Wednesday, October 2, 2002 (AP) House panel approves airport aid, but it may be too late LESLIE MILLER, Associated Press Writer (10-02) 15:05 PDT WASHINGTON (AP) -- A House subcommittee approved a bill Wednesday to help struggling airlines, but the effort may be too late to become law this year. The congressional session is nearing an end and senators have yet to act on similar legislation. The House Transportation Committee's aviation panel approved loan guarantees, terrorism insurance and new ways to ease 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. He said it was about "half of what the airlines said they need to get on= a stable economic footing." Airline executives say they expect their carriers to lose $7 billion this year because fewer people are flying since the Sept. 11 attacks, and because of security costs. The subcommittee chairman, Rep. John Mica, 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," said Mica, R-Fla. 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 troubl= ed airlines if the United States goes to war with Iraq. Should Congress authorize force against Iraq and oil prices rise by 25 percent, the subcommittee 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 ounces, which could generate $305 million annually. Airlines were banned from carrying heavier mail after the terror attacks. The subcommittee 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. Michael Wascom, spokesman for the Air Transport Association, said the airlines are optimistic that Congress is focusing on the industry's financial problems. "The overwhelming majority of aviation committee members recognized the industry's serious financial situation and took decisive action today that will save the airlines and their passengers hundreds of millions of dollars," Wascom said. 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: House Transportation and Infrastructure Committee: www.house.gov/transportation. =20 ---------------------------------------------------------------------- Copyright 2002 AP