Airlines unlikely to get extensive federal bailout By Susan Page, USA TODAY WASHINGTON =97 The White House isn't likely to propose the big aid package= =20 that hard-pressed airlines have requested, a senior administration official= =20 said Tuesday, to avoid "getting in the way" of what's seen as a necessary=20 restructuring of the industry. Bankruptcy is a "healthy" process to deal=20 with the drop in demand and high labor costs that the industry faces, the=20 official said. He called the costs of making a significant difference with= =20 a federal bail out too great. "We're not in a position to make a=20 fundamental difference from government largess," he said. The industry has= =20 requested $13 billion in government funding and tax breaks at a time when=20 the war in Iraq has worsened the airlines' dire financial problems. Some=20 modest aid might be approved, the official said, but "not anywhere near"=20 what the airlines would like. Airlines are pressing Congress hard for help,= =20 but any substantial aid package would face long odds without administration= =20 support. Senate Majority Leader Bill Frist, R-Tenn., said Tuesday that=20 Republicans are discussing a possible aid package and indicated that the=20 airlines' case would get a hearing. The administration official, who spoke on condition that he not be=20 identified by name, indicated that President Bush sided with those advisers= =20 who had argued against aid. They include Treasury Secretary John Snow and=20 Budget Director Mitch Daniels. On the other side were Andy Card, White=20 House chief of staff, and Transportation Secretary Norman Mineta, who urged= =20 that the administration propose some relief. The White House hasn't=20 announced its intentions, but the official said it was clear to him that=20 the opponents of the package would prevail. Airlines must restructure, he= =20 said, some through bankruptcies. He said it wouldn't jeopardize service=20 because of the ready supply of airplanes and airline personnel. But more=20 bankruptcies are likely to reduce consumer choices and airline jobs.=20 Industry analysts say American Airlines, the nation's largest, could face=20 bankruptcy reorganization. United Airlines, the second-largest carrier, is= =20 in bankruptcy court and could be pushed to liquidation. UBS Warburg analyst= =20 Sam Buttrick said he doesn't expect significant federal support unless=20 there's more domestic terrorism. The drop-off in demand since the war began= =20 has not been devastating, jet fuel prices are dropping and "labor costs are= =20 about to tumble," he said. Contributing: Kathy Kiely, Dan Reed *************************************************** The owner of Roger's Trinbago Site/TnTisland.com Roj (Roger James) escape email mailto:ejames@xxxxxxxxx Trinbago site: www.tntisland.com Carib Brass Ctn site www.tntisland.com/caribbeanbrassconnection/ Steel Expressions www.mts.net/~ejames/se/ Site of the Week: http://www.thehummingbirdonline.com TnT Webdirectory: http://search.co.tt *********************************************************