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House drafting bill for airlines'I don't want to feed dinosaurs that might disappear'
From Patty Davis (CNN Washington Bureau)
WASHINGTON (CNN) -- One day after major airlines came to Capitol Hill warning that they face an unprecedented financial crisis, legislation is being drafted in the House to help them. A bill could be introduced as early as this week. The Aviation Subcommittee chairman, Rep. John Mica, R-Florida, is working on a bill that would extend war risk insurance for the airlines and possibly allow them to apply once again for $10 billion in loan guarantees, a Mica spokesman said. The deadline for applying was June and several airlines either didn't apply or were turned down. Mica will look into the airlines' complaint that they simply can't afford to pick up the nearly $4 billion tab for aviation security costs, the spokesman said. At the very least, House members are considering reimbursing airlines for the costs of installing reinforced cockpit doors, for airline seats given up to federal air marshals and for the costs of their explosive detection machines now being used by the federal government. "The federal government has done a two-step, mandating security requirements of the airlines and not coming through with the funds," said the spokesman. "The intent all along has been to introduce a bill this week. It rests in large part on crafting a bipartisan agreement with Democrats in the House." Agreement in principle
A spokesman for Rep. James Oberstar -- a key Democrat on aviation issues -- said there has been an agreement in principle with Republicans on extending war risk insurance and reopening the loan guarantee program for airlines. Discussions continue on how much to reimburse the airlines' security costs. Both Republican and Democrats say they don't want to bail out airlines that are suffering because of their own mismanagement. "I don't want to feed dinosaurs that might disappear," Mica said. Mica said he doesn't support giving the airlines more cash on top of the $5 billion infusion Congress gave airlines after the September 11 terror attacks. The airlines say they're not asking for that this time. Last week the Senate Commerce Committee passed a bill extending war risk insurance for airlines. But that bill does not address reimbursing airlines for security costs. That issue will likely come up next Wednesday when the committee, headed by Sen. Ernest Hollings, D-South Carolina, holds a hearing on the airlines and the economy.
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