DOT AMENDS AIRLINE 9/11 COMPENSATION RULES

DOT AMENDS AIRLINE 9/11 COMPENSATION RULES    The Department of Transportation (DOT) announced amendments to the rules for establishing procedures for air carrier compensation for losses as the result of the Sept. 11 terrorist attacks. The amendments provide additional details about how air carriers should apply for compensation under the Air Transportation Safety and System Stabilization Act, which was signed into law by President Bush on Sept. 22.
   “These rules will help carriers and the department complete the compensation process as soon as possible,” said Norman Mineta, secretary of Transportation.    Mineta added that, since Sept. 26, DOT has received applications from over 300 air carriers. He said that DOT has made payments to 31 of these carriers, totaling over $3.8 billion of the $5 billion authorized.
   DOT said that today’s amendments respond to comments by air carriers and other interested parties on the department’s Oct. 2001 airline compensation procedures final rule.
   The amendments concern such issues ass how compensation is calculated for indirect air carriers and “wet lease” carriers, as well as the accounting terminology and procedures to be used in reviewing the information that carriers submit with their applications.
   The rule is effective Jan. 2, 2002, comes from the act, which allows a total of $5 billion in compensation to be provided for “direct losses incurred beginning on Sept. 11, 2001, by air carriers as a result of any Federal ground stop order issued by the Secretary of Transportation or any subsequent order which continues or renews such stoppage; and the incremental losses incurred beginning Sept. 11, 2001, and ending Dec. 31, 2001, by air carriers as a direct result of such attacks,” as stated on the ruling.
   The rule may be obtained via the Internet at www.dot.gov/accomp.html.