SENATE AIRLINE BAILOUT PROVIDES $500 MILLION FOR CARGO AIRLINES
The U.S. Senate's $15-billion airline emergency package passed Friday provides $500 million for all-cargo carriers, according to the Air Transport Association.
“We are gratified that our nation’s airlines will not become the first economic casualty of this war,” said Carol Hattett, ATA president and chief executive officer.
Under the bailout plan, the Air Transportation Safety and System Stabilization Act would provide $10 billion in federal loan guarantees and credits, subject to such terms and conditions as President Bush deems necessary. It would also provide $5 billion in compensation for direct losses incurred beginning on Sept. 11.
According to the ATA, passenger-only airlines and combined passenger/cargo airlines would be eligible to share $4.5 billion of the total $5 billion provision. Cargo-only airlines would be eligible to share the remaining $500 million.
While this measure is lauded by some, others in the aviation industry think that drastic measures may not be the best solutions for drastic situations.
Daniel Fernandez, Secretary General of the International Air Cargo Association, was optimistic about the package, but wanted the industry and the government to make moderate moves to as they try to keep the airlines and air cargo industries from toppling. It is too soon to forecast what needs to be done, in terms of air cargo security and spending packages, Fernandez said. “What we feel, as an industry, is that we don’t want to play into the hands of the terrorists.”
Members of the Air Transport Association include Airborne Express, Emery Worldwide, Evergreen International Airlines, FedEx Corporation, Polar Air Cargo and United Parcel Service.
SENATE AIRLINE BAILOUT PROVIDES $500 MILLION FOR CARGO AIRLINES
