Airlines ask for war subsidy

Airline executives are seeking assurances of financial support from Congress to protect them from the financial ruin they say would befall the industry during another war with Iraq.

The airlines are seeking tax breaks, insurance backstops or other government support. The executives say a war would drive up fuel and insurance prices and drive down the number of passengers with fears that al Qaeda and Iraqi military operatives might seek reprisal, just as the industry is beginning to regain financial footing after the September 11 attacks.
Sen. Harry Reid, Nevada Democrat, mentioned the airlines' concerns during a congressional debate this week on whether the United States should take military action against Iraq.
Executives from United Airlines, American Airlines, Delta Air Lines and other airlines met with Mr. Reid; Senate Minority Leader Trent Lott, Mississippi Republican; House Minority Leader Richard A. Gephardt, Missouri Democrat; Rep. John L. Mica, Florida Republican; and others on Capitol Hill in recent days.
The House Transportation subcommittee on aviation will hold a hearing Tuesday on airlines' financial plight, including potential effects of a war with Iraq.