Lawmaker waits for White House signal on airline aid

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Lawmaker waits for White House signal on airline aid

WASHINGTON (Reuters) =97 A key Republican lawmaker said Thursday he was=20
reviewing possible aid to U.S. airlines and waiting for a White House=20
signal on if and when Congress should mitigate their expected losses from=20
the Iraq war. With the biggest carriers saying they could face up to $4=20
billion in losses from a prolonged conflict, Florida Republican Rep. John=20
Mica said he was examining options for assistance. These include reopening=
=20
a loan guarantee program that was initially established to help airlines=20
recoup losses after the Sept. 11, 2001, hijacked plane attacks. But Mica,=20
chairman of the House transportation panel's aviation subcommittee, said he=
=20
was waiting for the White House and more senior Republican congressional=20
leaders to decide on a course. "I get my direction from higher authorities=
=20
and leadership, when the White House and leadership are ready to move," he=
=20
told a news conference on an aviation security issue. Two senior Senate=20
Republicans, John McCain of Arizona and Trent Lott of Mississippi, wrote to=
=20
the White House earlier this week asking whether the Bush administration=20
planned to offer an aid plan. Transportation Secretary Norman Mineta said=20
the administration would be ready to move quickly to help the airlines if=20
necessary, but he offered no timetable or proposals.

Big U.S. carriers said last week that any Iraq conflict lasting a maximum=20
of 90 days could produce $4 billion in losses, push the weakest carriers=20
into bankruptcy or liquidation, and cost 70,000 jobs. They have proposed=20
several options in lobbying Congress and the administration in recent=20
weeks. Airlines want the government to assume more aviation security=20
expenses, guarantee long-term high-risk liability insurance, and provide=20
some relief from soaring fuel costs. Don Carty, the chairman and chief=20
executive of American Airlines, said the industry's message appears to=20
resonating with policy makers. "We're beginning to hear more from=20
Washington," Carty told the airline's employees in Fort Worth Thursday.=20
Carty said the lobbying campaign is picking up momentum and said there was=
=20
a chance the government will step in if the Iraq crisis drags on. An=20
opportunity could come in the next few days, when the administration is=20
expected to propose an emergency spending bill for Iraq war expenses. But a=
=20
White House official declined to say Thursday whether that measure would=20
include airline aid.

"We've talked with the airlines. Of course we'll continue to do that. We=20
recognize the issues they face. We're listening to the airlines. We=20
understand what their concerns are and we are studying the situation," the=
=20
official said. Mica told reporters he might try to get a separate airline=20
security provision into the emergency spending bill =97 a proposal that the=
=20
government pay to equip U.S. commercial aircraft with defenses against=20
shoulder-fired missiles. As for airline relief, he said he was examining=20
fuel taxes; the possibility of making war risk insurance permanent; and=20
reimbursing airlines for other post-Sept. 11 mandates like strengthening=20
cockpit doors. Democratic Rep. James Oberstar of Minnesota introduced=20
legislation on Wednesday that would provide between $4 billion and $5=20
billion in aid to the airlines, some of it right now.


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