You have been sent this message from psa188@juno.com as a courtesy of the Washington Post - http://www.washingtonpost.com To view the entire article, go to http://www.washingtonpost.com/wp-dyn/articles/A6862-2003Jan31.html Airlines Want Government Help in Event of War By John Crawley<p> The U.S. airline industry, worried that a war with Iraq could trigger more bankruptcies, said on Friday it was forming a plan soon for easing cost pressures caused by taxes and rising fuel costs.</p><p> The airlines have yet to develop a consensus on what to seek in the plan, according to executives of their chief lobbying organization, the Air Transport Association.</p><p> But they have developed a broad outline of a plan to present to Congress and the Bush administration soon. They have already informally asked the White House to give them access to the nation's strategic petroleum reserves to mitigate an expected spike in jet fuel prices in the event of an Iraqi conflict.</p><p> The industry is also likely to ask the government to at least lift the taxes and fees imposed since the Sept 11, 2001 hijack attacks for aviation security.</p><p> Congress resisted that request amid worsening industry finances and bankruptcies last year at United Airlines <UAL.N> and US Airways <UAWGQ.OB>. The Transportation Department has not supported that option either.</p><p> Other options may include asking the government to temporarily relax anti-trust laws to permit them to discuss scheduling, airline executives have said.</p><p> Sen. John McCain, an Arizona Republican and the chairman of the Senate Commerce Committee, said earlier this month that the airline industry needed to take more "self help" measures before they can expect any meaningful assistance from Congress.</p><p> Airlines contend that aviation security should be a government expense because of its role in protecting national security since the Sept 11 hijack attacks. The tax pays part of the cost for government-run screening operations for passengers and baggage at airports.</p><p> Carriers have long complained that the security tax of up to $10 per round-trip is eroding their bottom line because they cannot pass the cost on to passengers. The biggest airlines continue to lose money and have had to cut fares to compete in a softer market while many of their expenses continue to rise.</p><p> The industry association also said it is beginning to see some evidence that war fears have prompted some reduction in overseas bookings for travel this spring.</p><p> "We're in an economic state today that this industry hasn't faced before and I think the CEOs are very much in accord that they have to pull together to accomplish some of these objectives, so I suspect we will have a strong accord on a specific plan," said James May, the airline association's incoming president and chief executive.</p><p> Wall Street estimates the major U.S. carriers lost between $8 billion and $10 billion in 2002, and the industry is worried that an Iraq war could push more of them into bankruptcy.</p><p> Some major U.S. airlines, including No. 1 American Airlines, have recently hired bankruptcy lawyers, sources told Reuters last week. While that does not mean these carriers are ready to file for bankruptcy protection, it does signal that they are keeping their options open.</p><p> American posted a $3.5 billion loss in 2002 and its stock has plunged. Shares of AMR Corp. were off 11 cents, or 3.7 percent, to $2.81 in midday trading on the New York Stock Exchange. </p>