US Congress passes airline war relief legislation
The American Congress has voted to appropriate funds to help reimburse airlines for some of the additional security costs they have incurred since September 11, 2001. This measure, included in a bill to finance the Iraq war, provides valuable relief for US carriers operating in a difficult economic environment made worse by the effects of the war.
In response, American Airlines company, one of the lobbyists on behalf of the US airline industry, issued a statement saying that the action by Congress, in addition to improved prospects for an early end to the war in Iraq, offer much-needed optimism to industry.
American Airlines stated it believes that while the one time federal payment is much needed, it is still necessary for the carrier to achieve four billion dollars in permanent, annual structural cost savings, including $1.8 billion in employee savings, to survive.
On March 31, the company reached tentative agreements with the company's three major unions to restructure labor contracts; employees are now in the process of voting on ratification of those agreements. — (menareport.com)
© 2003 Mena Report (www.menareport.com)