U.S. airlines to get $2.3 billion in cash reimbursements

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U.S. airlines to get $2.3 billion in cash reimbursements

WASHINGTON (Reuters) =97 American Airlines, Delta Air Lines, and bankrupt=20
United Airlines are each getting more than $300 million in cash for=20
reimbursed security costs, the government said Wednesday. The=20
Transportation Security Administration said it had notified 66 U.S.=20
airlines that their cash reimbursements were being electronically=20
transferred into their accounts. Federal law requires that the=20
disbursements be completed by Friday. Nine of the carriers, including all=20
the major airlines, signed agreements that limit compensation of top=20
executives as a condition of receiving the assistance. The aid was approved=
=20
by Congress last month to help the industry shake its worst-ever downturn.=
=20
Travel has been off sharply since the September 2001 hijack attacks, and=20
the slump worsened during the Iraq war.

Lawmakers agreed to reimburse airlines $2.3 billion in security costs the=20
carriers had paid the government since February 2002. Much of that came=20
from a passenger security fee of up to $10 per round trip the industry was=
=20
forced to absorb because tickets have been deeply discounted to attract=20
business. Congress agreed to suspend that fee between June 1 and Sept. 30=20
to save the airlines an additional $700 million. The fee helps pay for=20
airport security improvements mandated after the attacks. It is the second=
=20
major aid program approved by Congress for the airlines since the attacks=20
on New York and Washington. The first was a $15 billion package of cash and=
=20
loan assistance that was approved in late 2001. Under the new aid program,=
=20
Delta will receive $390 million; American, $360.9 million; United, $300.2=20
million; US Airways , $216 million; Southwest Airlines $271 million;=20
Northwest Airlines $205 million, and Continental Airlines, $173 million.


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