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House, Senate Move On Airline Relief Bills

 

April 2, 2003

 

The House and Senate yesterday came closer to approving financial help to the airline industry, including laid-off workers, but House lawmakers included a provision capping executive salaries and benefits at last year’s rates.  The supplemental spending measure passed by House Appropriations contained $235 million for airport modifications to install explosives-detection equipment.

 

Senate appropriators during a markup of the President’s Fiscal Year 2003 war supplemental approved a package worth $3.5 billion, a compromise between the Republican-proposed $2.8 billion airline aid and additional funds requested by Sen. Patty Murray (DWash.) that would also help laid-off airline workers. Murray said the money would also increase funds to airports to pay for security.  The deal is expected to go to the Senate floor this week. Senate Republicans, outraged over airline executives’ bonuses paid at a time of increasing bankruptcies and industry job losses, pledged last week that they would include language in any aid bill to cap executive compensation for airlines seeking federal relief.

 

As of press time yesterday, there was no indication that such language was included in the amendment approved by Senate appropriators.  The House approved an amendment to the supplemental introduced by Chairman Rep. Bill Young (R-Fla.) at the request of Republican leadership to grant $3.2 billion in aid to the airlines. But the measure will go forward with an amendment introduced by Rep. Martin Sabo (D-Minn.) that caps executive compensation at 2002 levels.  Ranking Member Rep. David Obey (D-Wis.) protested, “I don’t know what we ought to do for the airline industry,” noting airlines have sought federal help “every two, three, four years.” While acknowledging the extraordinary circumstances the industry faces in the aftermath of the Sept. 11 terror attacks, he said that even without the attacks airlines would have filed for bankruptcy and that the government should consider regulating airlines as a “necessary public utility.” 

 

The airlines are “always on the lookout for exceptions to the normal capitalist rule,” he said, vowing this would be the “last time I will vote to contribute a dime to the airlines” until the government decides it needs to be more closely regulated as a public utility.  Young, in introducing the $3 billion assistance package, said he did not believe it belonged in the war supplemental and that money for airline aid should come from the aviation trust fund. But Republican leaders agreed to draw the money from the general fund.  Democratic Whip Rep. Steny Hoyer (D-Md.) threw in his support but said he wanted assurance that appropriators would in future address the needs of airline workers. Minority Leader Rep. Nancy Pelosi (D-Calif.) has said that aid for airline employees laid off as the result of the terrorist attacks should be included in any package to help the industry. –DM

 

 

 

 

Source: Aviation Daily, April 2, 2003

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