Delta CEO says airlines still need more help from Congress

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Delta CEO says airlines still need more help from Congress

WASHINGTON (AP) =97 The head of Delta Air Lines said on Wednesday that the=
=20
entire airline industry could go bankrupt if the government doesn't pick up=
=20
costs for aviation security. Leo Mullin, Delta's chief executive, said=20
Congress ought to pay for aviation security and eliminate the $2.50 tax=20
levied on each segment of a flight. "Without these steps, the government=20
will by default come to own the airlines," Mullin said at a lunch sponsored=
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by the Aviation Safety Alliance. He said he expects the airline industry to=
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lose about $10 billion this year because of higher security costs and fewer=
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passengers. Before Sept. 11, airlines paid for passenger screening, but=20
after the attacks the government took responsibility and airlines agreed to=
=20
reimburse the cost.
Mullin said revenue losses due to security restrictions, new bulletproof=20
cockpit doors, seats taken up by federal air marshals and the $2.50 tax=20
cost Delta $670 million last year. Congress has twice helped the airlines=20
since Sept. 11. In November 2001 President Bush signed into law a $15=20
billion aid package that included $5 billion in cash assistance and a $10=20
billion loan guarantee program.

Last month, Congress enacted a law to extend government-issued war-risk=20
insurance and to limit liability against companies for the terrorist=20
attacks. Rep. John Mica, R-Fla. =97 chairman of the House aviation=20
subcommittee =97 said the law would save airlines $1 billion. Denver-based=
=20
airline consultant Michael Boyd said airlines are being squeezed by=20
security costs. But, he said, Mullin "might as well go to the Salvation=20
Army and ask them to pick them up." The federal budget suffered a $159=20
billion deficit for the 2002 budget year, and some analysts have said war=20
with Iraq could cost between $99 billion and $1.9 trillion over a decade.=20
Pia Pialorsi, spokeswoman for Sen. John McCain, R-Ariz., incoming Senate=20
Commerce Committee chairman, said it's too early to tell if Congress would=
=20
agree to more aid for airlines. "Senator McCain will look at the financial=
=20
state of the industry," she said. Mullin said one element of the aid=20
package =97 the $10 billion loan guarantee program =97 has outlived its=20
usefulness. He said he had no reason to disagree with the loan board's=20
recent decision to reject a request by United Airlines for a $1.8 billion=20
loan guarantee, and that no more loan guarantees should be issued. "We=20
ought to call it quits on that," Mullin said.


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