Posted on: Thursday, October 3, 2002

Airline aid bill may be too late for passage

By Leslie Miller
Associated Press

WASHINGTON — A House subcommittee approved a bill yesterday to help struggling airlines, but the effort may be too late to become law this year. The congressional session is nearing an end and senators have yet to act on similar legislation.

The House Transportation Committee's aviation panel approved loan guarantees, terrorism insurance and new ways to ease security costs that airlines say are devastating the industry.

Rep. James Oberstar, D-Minn., said the bill could save the industry $1.5 billion by extending government-sponsored terrorism insurance, fully reimbursing the cost for bulletproof cockpit doors and allowing airlines to carry mail.

He said it was about "half of what the airlines said they need to get on a stable economic footing."

Airline executives say they expect their carriers to lose $7 billion this year because fewer people are flying since the Sept. 11 attacks, and because of security costs.

The subcommittee agreed to extend the terrorism insurance policies issued by the government after the hijackings last year and to limit to $100 million each airline's total liability for people injured or killed on the ground or in buildings during an act of terrorism.

It also agreed to reopen a loan-guarantee program for financially troubled airlines if the United States goes to war with Iraq. Should Congress authorize force against Iraq and oil prices rise by 25 percent, the subcommittee voted to give them loan guarantees and lines of credit to buy jet fuel.

Another measure would bring in more money for airlines — restoring their ability to carry U.S. mail weighing more than 12 ounces, which could generate $305 million annually. Airlines were banned from carrying heavier mail after the terror attacks.

The bill must still be approved by the House Transportation Committee and then the full House before it goes to the Senate.