WASHINGTON, Sept. 24 (UPI) -- WASHINGTON, Sept. 24 (UPI) -- At the urging of the White House, the Congress passed Friday a $15 bailout for the airline industry in the wake of the Sept 11 attack which sent economic ripples through the airlines which have seen a marked drop off in passenger because of security worries.
The assistance package was signed by President Bush on Saturday.
"`This will help the airlines maintain short-term stability as they work toward long-term viability for the benefit of all the workers and companies that depend on air travel,'' said the president in a national radio address Saturday.
The bailout helps the flailing airline industry in a number of regards, but does not extend to actual assistance to the nearly 100,000 airline workers laid off in the wake of the attack which economically roiled the industry.
This comes at time when the industry was already on the ropes economically from large amounts of debt and high operating cost, along with declining ridership because of the already slowed U.S. economy before the attacks
Now with business travelers -- one of the mainstays of the industry -- dropping out from the flight line in droves post attack, the industry is looking at a 20 percent or more drop in ridership in the near term. This compounded with the multi-billion dollar loss from four day of being grounded after the attack have left the airlines reeling.
Further compounding problems in the industry was the question of airline insurance in the wake of the terrorist attacks which used hijacked planes and missiles. Baring government intervention on the issue, the insurance industry was faced with withdrawing coverage from the airlines, effectively grounding them once again.
The assistance package is meant to provide support to the industry until next June, when industry officials are forecasting a hopeful return to at least the pre-attack level of ridership.
The package includes $5 billion in immediate compensation for losses stemming from nearly four-day shutdown of operations at Sept 11, and the huge drop off in business since that date; with the remaining $10 billion being for loan guarantees in order to pay for higher insurance premiums and security costs.
There are no provisions -- in this package at least -- for the nearly 100,000 persons laid off in the last several weeks. Also the airlines have warned of further potential of layoffs
However, Sen. Jean Carnahan, D-Mo., is drafting a $3.75 billion package designed to help out-of-work airline workers, that includes health insurance, unemployment benefits and training. The Senate is expected to take up the measure for consideration within the next several weeks.
