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US airlines fear financial impact of Iraq war
WASHINGTON US airlines said on Thursday they plan to starkly illustrate to Congress and the Bush administration the financial impact that any war with Iraq would have on their industry, including the strong possibility of more bankruptcies.
Airline chief executives met to polish their message that war could cost them up to $4 billion per quarter, and to start briefing key lawmakers to underpin their appeal for more government help.
So far Congress has been unwilling to extend another hand to the carriers after approving a $15 billion package of cash and loan guarantee assistance for losses incurred after the 2001 hijack attacks, which accelerated the worst-ever industry downturn.
One key lawmaker, John McCain, said at a hearing last month he wanted to see more "self-help" at big airlines before considering another round of assistance. McCain chairs the Commerce Committee, which oversees aviation matters. Nevertheless, the airline executives plan to canvass the capital in the coming weeks to highlight the industry experience of the 1991 Gulf War that aggravated prolonged financial problems and contributed to several bankruptcies.
Big name carriers that disappeared during the early 1990s included Eastern and Pan Am. "We're in much worse shape than we were then," said Michael Wascom, a spokesman for the industry's chief lobbying group, the Air Transport Association. "It took us five years to recover the first time."
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