Attempts to get airline aid may fall short

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Attempts to get airline aid may fall short
By Dan Reed, USA TODAY

Hundreds of airline employees are expected to fan out across Capitol Hill
on Tuesday and Wednesday in an industry-orchestrated effort to win at least
$9 billion in immediate federal aid that some carriers may need to survive.
But the high-profile campaign may not yield much. Expressions of
understanding and concern are abundant. However, neither Congress nor the
Bush administration have settled on a specific plan that would help
carriers already in bankruptcy court avoid liquidation, or help those
teetering on the brink of insolvency avoid having to file Chapter 11. The
White House said Monday that no aid package would be included in the $80
billion supplemental budget the president will send to Capitol Hill to pay
for the war in Iraq and its aftermath. Bush spokesman Ari Fleischer said
any airli ne aid should be considered "separate and apart" from the
supplemental request.

Meanwhile, senior staff members for the Senate and House committees that
deal with most aviation policy issues also indicated Monday that passing an
effective and timely airline financial aid package is a long shot, at best.
Senate Aviation subcommittee Chairman Trent Lott, R-Miss., is sympathetic
to airline requests for relief from security-related costs imposed by
government since the Sept. 11 terrorist attacks. But many of the industry's
problems began well before then, he says. Duane Woerth, president of the
Air Line Pilots Association, says airlines and their workers are asking for
help only with financial problems tied directly to terrorism, war and
national security issues, not those related to business mistakes or the
soft economy. "If a hurricane had ripped through Florida, FEMA would be
coming up with $5 billion in aid almost overnight because the government
would realize that there's no way the businesses and economy in that area
could be prepared for or sustain that kind of unexpected hit," Woerth says.

Airline labor is more than doing its part to help the airlines through
their worst financial crisis by taking pay and benefits cuts, he says. The
USA's nine largest airlines have lost $18 billion the past two years. The
war is expected to push this year's losses to almost $11 billion. In other
airline developments Monday: Delta followed the lead of most other big
carriers by trimming its April capacity 12%, mostly in international
markets. Airline stocks tumbled Monday on investors' worries that war with
Iraq will be protracted. The stocks of Continental, Delta, Northwest and
AMR, parent of American Airlines, lost 11.3% to 17.2% of their value Monday.

Contributing: Kathy Kiely and Richard Benedetto

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