Time is running out for the new aid package desperately sought by the US majors. The outgoing Congress that crafted the $15 billion assistance package after 11 September will have completed its term by year-end and could adjourn sooner.
The proposed package, although slimmed down, is likely to collapse when Congress adjourns this month or next. It has also run into resistance from taxpayers, suspicious of any form of corporate aid in the light of US business scandals.
The airlines are calling for the terrorist war risk insurance programme to be made permanent, instead of extended in increments of 60 or 90 days. They also want reimbursement for such expenses as the cost of installing armoured cockpit doors, and possibly suspension of a new $2.50 per segment security fee imposed on all US flight tickets. The top six US airlines claim this will cost them a combined $1.6 billion in 2002.
In pleading for the aid, American Airlines chairman Don Carty spoke of a danger of industry-wide collapse and the House Aviation Subcommittee, chaired by John Mica, unanimously passed a measure that would extend airline war risk insurance coverage for a year at current premiums. This bill would also reopen a federal loan guarantee programme if the USA goes to war with Iraq, with up to $3 billion on the table. While the bill would also loosen current restrictions on carrying mail in the holds of passenger aircraft, it would not, however, eliminate the $2.50 security fee, nor would it cancel the monthly security fee airlines must pay to the US Department of Transportation.
Mica predicts that even when this Congress returns for a rare, and possibly brief, final session between the November elections and the end of the term, other issues could drown out aviation aid. His panel's aid measure faces opposition from members who insist the package includes aid for some of the 100,000 airline employees laid off or facing furlough.
Jim Oberstar, the influential senior Democrat Representative on the House Transportation Committee says: "Congress acted quickly to stabilise the financial condition of the airlines, but has done little to help aviation workers who lost their jobs as a result of last year's terrorist attacks."
The likely forum for last-minute issues would seem to be the bill creating a new homeland security department, but this measure is being stalled by partisan gridlock. The senior senator, Robert Byrd of West Virginia, filibustered the measure to delay consideration until he was sure that all senators had actually read the bill. Another senator, Illinois Republican Peter Fitzgerald, remained so angered over congressional pressure to reach a compromise on the expansion of Chicago O'Hare that he vowed to block all aviation legislation.
Making relief even more unlikely is the legislative reality that any disputes between the House and the Senate would have to be resolved and such compromises are usually a lengthy process. Northwest Airlines chief executive Richard Anderson says that no form of relief could be expected this year, but sees "a reasonable likelihood" that some issues such as insurance would be addressed next year.
DAVID FIELD WASHINGTON
Source: Airline Business
