Minnesota Congressman to introduce airline aid bill

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Minnesota Congressman to introduce airline aid bill

WASHINGTON (AP) =97 Sen. Norm Coleman said Wednesday he plans to introduce=
=20
legislation that would provide $2.7 billion in airline aid to help the=20
industry cope with financial losses from a war with Iraq. "I got a dog in=20
this hunt," said Coleman, a freshman Minnesota Republican, who plans to=20
introduce the bill Thursday. "I got Northwest Airlines laying off 4,900=20
people. The ex-mayor in me looks at unfunded mandates." Coleman said in a=20
telephone interview that his bill was not a bailout but rather a package=20
aimed at reimbursing airlines for security-related federal regulations.
His legislation would direct the federal government to:
=95 Reimburse airlines for security screenings and fortifying cockpit doors;
=95 Purchase tickets for Federal Air Marshals, instead of having them ride=
=20
for free;
=95 Impose a 1-year moratorium on air carrier and air passenger fees, which=
=20
would be picked up by the federal government;
=95 Provide a $100 million limit for airline liability for third-party=20
damages, such as injuries to people in a building or on the ground.

Eagan, Minn.-based Northwest Airlines announced last week that it will lay=
=20
off 4,900 people due to the war in Iraq and a significant drop in=20
reservations. A Northwest spokesman, Kurt Ebenhoch, said, "We understand=20
that Senator Coleman is working on legislation, and we appreciate his=20
efforts on behalf of Northwest Airlines and our 44,000 employees." Coleman=
=20
said he hoped his proposal could be included in the $75 billion=20
supplemental budget plan that President Bush has requested to help pay for=
=20
the war. The White House proposal does not include any airline aid, but=20
several congressional leaders from both parties said they will push for=20
such assistance. Rep. Jim Oberstar of Minnesota, the ranking Democrat on=20
the House Transportation Committee, has already proposed a $4 billion=
 package.

Oberstar's legislation would commit the federal government to reimbursing=20
airlines for any financial losses stemming from the war, extend their=20
war-risk insurance coverage and briefly offer federal loan guarantees so=20
carriers can absorb fuel price jumps.
Coleman said he plans to work with Oberstar to get something through=20
Congress, but he said he didn't want to include loan guarantees."I wanted=20
to keep mine focused on homeland security measures," Coleman said.=20
Oberstar, meanwhile, said he didn't support Coleman's proposed moratorium=20
on the $2.50-per-passenger security surcharge, which the airline industry=20
has advocated. If the moratorium passed, Oberstar predicted, airlines would=
=20
pocket the money, even as taxpayers picked up the cost of the security=20
through taxes. "Why should taxpayers pay twice?" he asked. After the Sept.=
=20
11, 2001, attacks, Congress gave airlines $5 billion in cash and $10=20
billion in loan guarantees. Still, two of the largest carriers, United=20
Airlines and US Airways, are bankrupt, and American Airlines is teetering=20
on bankruptcy. "As security has increased, so have government mandates,"=20
Coleman said. "The purpose of my bill is to lighten the burden Washington=20
has placed on the airline industry."


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