Taxpayers for Common Sense Action
Stop Airline Bailout.
Only one day after terrorists crashed two commercial jets into the World Trade Center, airline industry lobbyists were behind the scenes laying the groundwork for a multibillion-dollar plan to bailout the industry. Their lobby efforts succeeded when the Senate passed an unprecedented $15 billion package in aid to the industry, which included $5 billion in cash grants and $10 billion in loan guarantees.
This bailout plan clearly pays for industry losses incurred before September 11th, meanwhile the airlines awarded their executives $120 million in salaries and bonuses in 2001. The law also assigns liability to the government for claims related to the hijackings that exceed the airlines’ insurance coverage. Critics say this measure could require additional appropriations to the federal insurance fund, and provides a disincentive for the insurance industry and airlines to negotiate low premium costs.
The Senate passed the Air-Transportation System Stabilization Act.