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Aviation and Space Stakeholders Ask Congress to Ease Burdens on Airlines WASHINGTON, D.C., April 2- Citing the national crisis in the airline industry today, the Aviation and Space Stakeholders urged Congress to include legislation in the FY 2003 Appropriations Supplemental to ease the burdens on the airlines and airports of recently-imposed unfunded security mandates. In addition, the stakeholders asked Congress to support full funding of the Airport Improvement Program (AIP) so that vital infrastructure upgrades remain on schedule. In a letter to all members of the House and Senate, the stakeholder group said, "Since September 11, 2001, the airline industry has suffered the loss of $18 billion and projections for losses for 2003 were expected to be at least $6.7 billion. With the start of military action in Iraq, the 2003 losses are now expected to grow by at least $4 billion above the earlier projections to $10.7 billion. Unless Congress acts now, we could lose an industry which underpins our national economy." The stakeholders cited a recent study which showed that $343 billion in sales and 4.2 million jobs were produced directly in civil aviation or in industries related to civil aviation, such as travel and tourism. In the same year, $255 billion in sales and 3.2 million jobs arose indirectly in other industries constituting the supply chain for the civil aviation community. The crisis in the airline industry, according to the stakeholders, is national in scope and threatens the future of hundreds of thousands of people in the travel and tourism industry. Two major airlines are in Chapter 11 and more are expected to follow. Vital service to many small and medium sized communities is threatened as thousands of flights are being eliminated. In the manufacturing sector, the Aerospace Industries Association estimates that civil aircraft sector sales will fall by nearly $20 billion between 2001 and the end of 2003. Aerospace employment also dropped by 106,000 since September 11, a decline of 13 percent, according to AIA. Legislative proposals under consideration by the House and Senate Appropriations Committees would address several of the unprecedented financial and regulatory burdens faced by the commercial air carriers. A draft $2.8 billion package would directly reimburse the airlines for $1 billion in security measures incurred since 9/11; waive the $2.50 per passenger security fee for six months, and extend war risk insurance for airlines for a year. Members of Congress have also started to craft possible budget amendments for airport security upgrades and restored service to rural communities. The Aviation and Space Stakeholders are comprised of 31 associations that represent the manufacturers, the airlines, other commercial, charter, airline service companies and general aviation operators, the airport operators, the aviation maintenance providers, the aircraft parts distributors, the labor unions, and professional societies. P.A. Rel 2003-15 04.02.03 -AIA- Contact: Matt Grimison, AIA |
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