Oct 8, 2004:Pilots May Bid For Avianca
Oct 7, 2004:Peruvian Airline Changes Owners Again
May 15: TSA Allocates $2.3 Billion to U.S. Carriers to Offset Security Costs
Peruvian Airline Changes Owners Again
Employees who three months ago bought out Peru's biggest airline, Nuevo Continente -- formerly known as Aero Continente -- have sold 100 percent of the stock to a private Peruvian firm, a spokesman said on Thursday.
"This was on the table since the start of September because of the need for greater capital investment than the employees could make," said the spokesman, who declined to be named. "We are not revealing the sale price for now," he added.
The new owner is Vuela Peru (Fly Peru), an aviation consultancy firm controlled by the Professional Air group, which has a number of commercial aviation businesses, the spokesman added.
The airline began flying as Nuevo Continente in July after being grounded by authorities for nearly two weeks, stranding thousands of tourists because of incomplete insurance.
Aero Continente had been unable to renew its former insurance policy because of a ban on contacts with companies or people with US links after Washington placed the airline's founder, Fernando Zevallos, on a list of foreign drug "kingpins," a charge he denies.
That action triggered sanctions against the airline. The legislation seeks to hit alleged drug traffickers in their wallets.
The sanctions ban the airline from flying to the United States. It had already been grounded by US authorities on its Lima-Miami route because of safety concerns.
Nuevo Continente has struggled to recover its market share since restarting operations.
(Reuters)
Pilots at Colombian airline Avianca will decide on Saturday whether it will make a bid for the airline in conjunction with an unnamed Arab investor in a last-minute attempt to prevent an officially approved purchase offer from a Brazilian magnate.
Representatives of Colombia's pilot union ACDAC will meet the unnamed investor in Dallas, on Saturday to discuss a possible USD$120-130 million bid for the airline, which is now emerging from bankruptcy, ACDAC president Alberto Padilla said late on Thursday.
The airline said in August that it could exit Chapter 11 bankruptcy protection proceedings in the United States by mid-October after winning approval from its creditors for a restructuring plan based around a sale to Brazil's Sinergy.
But the pilots are determined to stop Sinergy's offer, which they say does not guarantee the airline's future.
Sinergy, which is controlled by businessman German Efromovich, wants Avianca to complement its Brazilian regional carrier, Ocean Air. Efromovich's company has offered to make a USD$64 million cash injection into Avianca and assume its debt of about USD$300 million.
The competing plan would give the pilots 51 percent of shares and the Arab investor -- whom Padilla described only as "the sheik" -- the other 49 percent.
"We are talking, more or less, about USD$120-130 million. The sheik has offered to help us in the deal with a loan," Padilla said.
"We have something against us, which is time. We would have to present (the offer) to shareholders before November 15," he said.
"If we don't get this approved, I think that Avianca's options are very limited, because we will never allow the company to end up in the hands of Mr. Efromovich," Padilla said.
Avianca filed for Chapter 11 bankruptcy protection in New York in March last year, pressured by rising fuel and insurance costs and slow economies in Colombia and Venezuela. Because it has a subsidiary in the United States, the airline was able to take advantage of US bankruptcy law, which allowed it to keep operating while negotiating with creditors.
(Reuters)
NORTHEAST BOLIVIAN AIRLINES SA ("NEBA") is a Bolivian Charter Airline that will soon to take off from Cochabamba, Bolivia to provide charter services to other airlines, tour operators, cruise lines, sports teams, UN or military troop transportation and quite possibly VIP, head of state or music tours and similar productions. NEBA has taken delivery of its first of (3) Lockheed L1011 Tristar wide-body aircraft with 300 seats in a two (2) class configuration for worldwide charters, sub-service contracts, VIP flights and wet-lease programs leased from and financed by TRISTAR CAPITAL (Nevada) LLC of Carson City, Nevada USA. Bolivia was chosen as a viable investment target due to its political stabilization, the fact that Bolivia is an FAA Categroy 1 Country with very stringent certifcation and safety standards and in part due to low labor and facilites cost structure, due to high number of high quality well trained and experienced airline management, techncial personnel and flight crews. In addition Bolivia has a stratigic location in the center of South America that make it feasable to pick up charter or wet-lease programs from airlines and tour operators neighboring MERCOSUR countries.
FOR IMMEDIATE RELEASE:
COCHABAMBA, BOLIVIA (PRWEB)4 Sep 2003
TRISTAR CAPITAL (Nevada) LLC as owner/lessor and The Flightstar Group, Inc. of Florida as aircraft manager are pleased to confirm it has funded and delivered its first of three Lockheed L1011 passenger aircraft to NEBA or NORTHEAST BOLVIAN AIRLINES SA (NEBA) f/k/a Northeast Bolivian Airways Ltda.
Mr. John Poindexter, the managing member of Tristar Capital LLC and a Director-Board Member of NEBA confirms the first fully refurbished and custom painted Lockheed L1011-50 Tristar aircraft powered by ROLLS ROYCE RB211 engines is Stage 3 noise compliant as well as CAT 3 auto-land certified. The L1011-50 aircraft, formerly operated by TWA and refurbished by Hamilton Aerospace Technologies was delivered by TRISTAR CAPITAL LLC and flown non-stop 8.5 hours from Tucson, Arizona to Cochabamba, Bolivia arriving on the evening of July 12th.
Our L1011 aircraft is undergoing Bolivian DGAC (CAA) certification, reregistration to Bolivia, inspections and is being used for NEBA flight attendant and techical crew training.
TRISTAR CAPITAL (Nevada) LLC has completed the acquistion and purchase of 35% of Northeast Bolivian Airlines, SA and will sit on the board of directors. Tristar Captial LLC is also providing NEBA with an interim line of credit for tooling, equipment and working capital sufficent to take care of crew training, airline recertification and upgrading of the airline from a smaller 33 year old family owned airline operator to a truely ¨World Class Wide Body Charter Operation".
Northeast Bolivian Airlines SA currently has about 25 employees (about 50 full time employees are planned in the next quarter). There are 4 L1011 technical and airline business planning consultants on board or under contract from TRISTAR CAPITAL LLC that are working diligently to recertify the airline by October 1st, 2003.
Northeast Bolivian Airlines SA (NEBA) is planning to add 2 more Lockheed L1011´s in an identical configuration of 300 seats (28 business class and 272 economy) within the next 3 to 6 months. In addition NEBA is negotiating with a major European aircraft lessor for 3 Dornier 328 new generation 32 passenger regional aircraft to work as an EXPRESS affiliate of an established Bolivian airline.
In addition NEBA has entered into a letter of intent to acquire 2 Boeing 727-100C Cargo Stage III aircraft from FLIGHTSTAR CAPITAL (Nevada) LLC for startup of regional and intra South America cargo opertions or even hauling its own freight from Paraguay, Ecuador and Bolivia.
Northeast Bolivian Airlines SA and TRISTAR CAPITAL LLC may be seeking additional expansion capital or access to credit facilites or lease-financing of newer generation jet aircraft after it is fully operational, fully recertified and flying on contracts.
NEBA or NORTHEAST BOLIVIAN AIRLINES SA has a website with photos and information that is up and running.
Colombia's AreoRepublica opens new Miami route
Friday May 30, 7:59 pm ET
BOGOTA, Colombia, May 30 (Reuters) - Colombian airline AeroRepublica has won local approval to open a new route to Miami from the Andean nation's fourth largest city of Barranquilla, the Civil Aviation authority said on Friday.
The route is currently serviced exclusively by Colombia's flagship airline Alianza Summa, which offers daily flights from the coastal city of 1.6 million people.
AeroRepublica currently has a 26 percent market share in Colombia's commercial passenger market, and recently invested $70 million to upgrade its fleet.
Aeromexico flight attendants strike looms
Friday May 30, 6:31 pm ET - By Gabriel Moreno
MEXICO CITY, May 30 (Reuters) - Aeromexico, Mexico's largest airline, said on Friday it could not meet flight attendants' wage demands, making a threatened strike this weekend look inevitable.
"The company is not in a position to offer any increase. The position until now is a zero increase and that is why the union says the airline is not making an offer," an Aeromexico spokesman who asked for anonymity told Reuters.
The Professional Association of Flight Attendants (ASSA) has asked for a 15 percent wage rise but says the company has refused to make them a salary increase offer.
The union has threatened to go on strike indefinitely at 12:01 a.m. (0501 GMT) on Sunday if its demands are not met.
Like many airlines around the world, Aeromexico has hit tough times since the Sept. 11, 2001 attacks in the United States.
The company, owned by Mexico's state-controlled Grupo Cintra, recently announced it will cut 400 jobs this year from a work force of 6,500 people and ground four of its 70 planes to reduce costs.
"We hope this position changes, that (Aeromexico) takes into account the deterioration there has been in our income," ASSA secretary general Arturo Aragon told Reuters.
The union represents 1,300 flight attendants.
Aragon said Aeromexico had asked its members to give up 10 percent of their earnings through a 5 percent drop in their base wage and cuts in allowances and overtime to save $6 million.
Delta Air Lines Song Takes to the Air
Press Release Source: Saturday May 17, 6:30 am ET
The World's Most Innovative Low-Fare Service Debuts Boston Service First Flight Departs from Boston to West Palm Beach
Song(TM), Delta Air Lines' new service developed to change customer expectations for high-quality, low-fare air travel, begins service from Boston on Saturday, May 17 with its maiden voyage from Logan International Airport to Palm Beach International Airport.
The inaugural flight departs Boston at 8:10 a.m. and is scheduled to arrive in West Palm Beach at 11:16 a.m. Additionally, the first flight from West Palm Beach departs at 12:10 p.m. and is scheduled to arrive in Boston at 3:11 p.m. Song will initially be scheduled for two daily roundtrip flights between Boston and West Palm Beach, and plans to add service from Boston to Tampa, Orlando, Ft. Lauderdale and Ft. Myers.
"A new era in air travel has taken off," said John Selvaggio, president of Song. "We are reintroducing fun, excitement and, most importantly, choice into the travel experience; we are very excited to be introducing service to Boston."
"With low fares, roomy leather seats and frequent non-stop flights to Florida, Logan passengers are getting the latest in airline service," said Massport CEO, Craig P. Coy. "The Boston market continues to attract premier customer service and innovation from the world's airlines and we are proud to welcome Song to Logan International Airport."
Song, which will provide direct non-stop service initially between cites in the Northeast United States and key Florida leisure destinations, plus Atlanta, Las Vegas and San Juan, will offer over 144 daily non-stop flights by October. Additionally, Song will service all three New York metro area airports - JFK, LaGuardia and Newark - the only low-fare service to do so.
Song will meet air travelers' individual and ever-changing needs through a variety of innovations, several of which are industry firsts. These include:
Regular updates to amenities and services based on customer feedback. Customers have the ability to vote on products and services via the Song Web site: www.flysong.com.
Web site to allow passengers to find low fares across a range of dates. When searching for flights at flysong.com, customers can instantly view additional low fares by selecting a wider range of dates rather than starting the search process from the beginning, for an experience that offers more information and flexibility.
The most advanced in-flight entertainment technology available (October 2003). Song is partnering with Matsushita Avionics Systems and EchoStar Communications Corporation (NASDAQ:DISH - News) and its DISH Network(TM) satellite TV service to provide a complement of on-board amenities, which will include:
Personal video monitors at every seat with "touch screen" technology and credit card "swipe" capability.
Live, all-digital satellite television programming from DISH Network.
Digitally-streamed MP3 audio programming, which will allow passengers to create a personal play list from an extensive library of audio files.
Pay-per-view programming available on demand, which will feature a wide-range of current offerings for all ages.
Multi-player interactive games that allow play between passengers.
Interactive iXplor moving map program with zoom capabilities and points of interest information.
Connecting gate information broadcast directly to personal in-seat video monitors.
Expandable in-flight entertainment technology which will facilitate the opportunity to integrate additional services in the future such as in-flight shopping and on-line product purchase capabilities.
Premium branded beverage and food choices available on-board
for purchase, including:
- Stolichnaya Bloody Mary cocktails and Kahlua White
Russians
- The "Song Sunrise," a cocktail created for Song containing
a blend of Stolichnaya Vodka and fresh cranberry and
orange juices and served in the first-ever in-flight
martini glasses
- Pizzeria Uno pizzas
- Cinnabon Breakfast Coffee Cakes
- Lender's bagels
- Yoplait and Stonyfield Farms organic yogurts
- Fresh, seasonal organic fruit
Complimentary Coca Cola(TM) products, including Dasani water.
A simple unrestricted low-fare pricing structure with most one-way fares expected to be no more than $299.* Song will provide customers simple, user-friendly pricing options, including 14-day, 7-day, 3-day, walk-up fares and sale fares. Fares will not require a Saturday-night stay.
33 inches of seat pitch, or more legroom, throughout the entire aircraft. This is the most legroom available from any low-fare service's fleet and more than most major carriers.
Frequent flyer benefits through the Delta SkyMiles(R) program and other partner programs.
Simple, one-step connections with Delta's worldwide service, including interline with SkyTeam(TM) members and other partner airlines.
"Our customers will play a major role in the development of Song," said Selvaggio, a 30-year veteran of the airline industry. "They will be able to vote products and services onto the aircraft. They will be able to make each flight what they want it to be."
Selvaggio added, "We've put a great deal of thought into everything we will offer, understanding that each time a person flies, he or she has different expectations. They may be on business and want the ability to prepare for a meeting. They may be flying with children and need something to keep them entertained. Or they may be flying for pleasure and are looking for a way to relax on board. We will be able to serve each of those customers on Song, on every flight."
Assets Unique Among Low-Fare Segment
Technology: Unlike its competitors, Song has the advantage to leverage Delta's world-class technological infrastructure to create the world's first all-digital airline product, thereby offering customers a wide-range of conveniences, including:
Dedicated Web site - www.flysong.com. On the Web, Delta's technology infrastructure will support flysong.com, a simple, easy to use, information-rich site on which customers can purchase tickets, find lower fares, check-in for flights and print boarding cards from the convenience of their home or office.
First-ever book to ticket automation. (Available in fall 2003) Over the phone, customers will book and complete purchases directly with Song through voice-recognition technology.
Self-service kiosks. At the airport, self-service kiosks will continue to help customers avoid lines by electronically executing high-demand transactions.
Efficient gate and boarding. At the gate, exclusive gate information displays will ensure that customers remain informed up-to-the-minute. Additionally, gate and boarding technology will facilitate efficient, expedited boarding.
Cost savings through higher aircraft utilization: Delta has developed a process that facilitates Song's aircraft utilization rates to be among the highest in the industry - 12.7 hours per day, a 22 percent improvement over mainline Delta's average 757 aircraft.
"Song is an aggressive initiative to compete in the low-fare market," concluded Selvaggio. "We will not only offer low fares but lower operating costs, so we can be successful where previous attempts by other major airlines have failed."
Song is an innovative low-fare service, which will provide non-stop flights between the Northeast and key Florida leisure destinations, plus Atlanta, Las Vegas and San Juan, with over 144 daily flights on 36 Boeing 757 aircraft. All Song flights are operated by Delta Air Lines. Song tickets can be purchased by visiting flysong.com or by calling 1-800-FlySong.
TSA Allocates $2.3 Billion to U.S. Carriers to Offset Security Costs
Press Releases: U. S. DEPARTMENT OF HOMELAND SECURITY, Transportation Security Administration
FOR IMMEDIATE RELEASE : May 15, 2003 - TSA 03-26
The Transportation Security Administration (TSA) sent out letters to 66 U.S. air carriers today informing them that their share of $2.3 billion will be electronically transferred into their accounts this week. The funds are for expenses and revenue forgone related to aviation security and are required by law to be disbursed by May 16, 2003.
"Air travel is a vital part of our nation's economy and a key aspect of the quality of life of Americans," said James M. Loy, Administrator of TSA. "Today, we are assisting the airlines for costs related to aviation security. Congress has taken an important step to support this critical part of our economy and TSA has once again played its part and met its mandate."
The $2.3 billion was distributed in proportion to the amount of security fees that eligible carriers have paid to TSA since February 2002. An additional $100 million has been set aside by Congress to compensate airlines for costs associated with reinforcing cockpit doors. TSA is coordinating the disbursement of this funding with a similar but already established program at the Federal Aviation Administration (FAA).
Loy cautioned that the program was "not simply a cash hand-out for airlines to restore them to economic health".
"In order to receive this money, Congress has required that the air carriers report how they allocated the funds to offset operating expenses and that in certain cases air carriers must sign agreements with TSA limiting the amount of compensation their top executives receive," Loy said.
Nine of the 66 carriers to receive funds were required to sign agreements limiting their executive's compensation. Under the law, airlines that flew commercial trans-Atlantic or trans-Pacific flights with more than 85 seats were required to agree to limit their executives' compensation to amounts equal to the executives' salary in the last fiscal year. The airlines are: American, American Trans Air, Continental, Delta, Northwest, Planet Airways, United, U.S. Airways, and World Airways.
The statute also suspends from June 1 through September 30 the per leg security fee that has been charged to airline passengers since February 2002. In addition, a separate fee charged to airlines has also been suspended for the same period. These fees help provide the government with funds that are used to implement security measures at airports. The suspension of these fees is expected to save airline passengers and airlines an estimated $700 million.
Frank Fine, air cargo line founder, dies
BY MATTHEW I. PINZUR, MiamiHerald.com - mpinzur@herald.com
Frank Fine waded into aviation as a way to get vegetables from his family's produce business to consumers up north and spent decades building it into a business that dominated air cargo in Central America and the Caribbean. Fine, 78, died Friday after an extended illness.
As celebrated as he was for keeping Miami a vital part of the cargo market, Fine was also disparaged after a 1997 crash of one his planes near Miami International Airport killed four crewmen and a motorist on Milam Dairy Road.
``Not only did he lose a lot in the sense of the reputation of the company that he had built, but he lost members of his family, said Susan Gilbert, a spokeswoman for Fine Air Services who worked under Fine for five years. ``I don't think he ever personally recovered.
His family moved from the Bronx in New York to Palm Beach County in the 1930s, growing and selling vegetables around Belle Glade and Pahokee. They were one of the first Jewish families to move to Palm Beach, son Barry said, and could not find a real estate agent willing to broker the purchase.
Although the business was based in Miami, Fine continued to live in Palm Beach, commuting daily via his own private plane or car.
Fine entered the family business in the 1950s, expanded it into Cuba and Panama and, when Fidel Castro seized agriculture assets, added farms in Jamaica, Mexico and Haiti. He continued to work with Castro's brother Raul for three years, Barry Fine said, ``So he could get whatever he could get out of Cuba.''
Fine's first cargo airline, Agro Air International, launched in 1975 with a single early model Boeing 720 jet. He expanded and diversified over the years, and his Fine Air company became the largest cargo airline serving South and Central America.
``He was one of those old time, roughneck, hands-on businessmen you just don't see any more, said attorney Richard Sharpstein, who represented Fine.
The 1997 crash opened a long, difficult period for the airline that included blame from the National Transportation Safety Board, guilty pleas on felony charges of improper record-keeping, millions of dollars in fines and 16 months in bankruptcy.
Gilbert stressed that most of Fine Air's roughly 1,000 employees kept their jobs through the bankruptcy, something that she said Fine made his top priority.
``What he cared about more than anything else was that the airline survive, she said.
An independent investment group bought the company out of bankruptcy last year, renaming it Arrow Air and ending the leadership of Fine and his son, who had been the company's chief executive officer.
''Fine Air was an institution in this county,'' U.S. Bankruptcy Judge A. Jay Cristol said when he presided over the deal in May. ``It was a good corporate citizen in Miami-Dade County for many years, until it ran into what to the court appears to be one terribly unfortunate event after another.''
Indeed, the crash Aug. 7, 1997 -- the year's only fatal commercial air crash -- will endure as the airline's epithet for most South Floridians. Flight 101, bound for the Dominican Republic with a load of cotton fabric, skidded across Milam Dairy Road and into the International Airport Center.
Pilot Dale ''Pat'' Thompson, First Officer Steve Petrosky, flight engineer Glen Millington and security guard Enrique Soto were killed, as was driver Renato Alvarez.
Investigators determined the plane's cargo was improperly loaded and secured. The U.S. attorney's office found that maintenance records were falsified; documents on weight of shipments were destroyed, altered or concealed; and a videotape of the plane's loading was taped over.
Fine Air pleaded guilty to two felony charges, and affiliate Aeromar Airline pleaded guilty to three more. Together they were assessed fines of $5 million.
After the 2000 plea agreement, Barry Fine said that ``certain inappropriate acts had been committed by a few of our employees, and the company takes ultimate responsibility for those actions.''
Friends said Fine was emotionally devastated by the deaths.
He was predeceased by his first wife, Wendy Holmes Fine, to whom he was married for almost 45 years, and siblings Muriel Fine Stursberg and Pat Fine. In addition to his son, Fine is survived by wife Nanci Adels Fine, daughter Wendy and four grandchildren.
Services are scheduled for 12:30 p.m. Monday at Temple Beth El, 2815 N. Flagler Dr., West Palm Beach. Donations may be made to the temple in lieu of flowers.
LanChile delays airplane buys as Iraq war weighs
SANTIAGO, Chile, April 4 (Reuters - LanChile - News), The largest freight carrier between Latin America and the United States, said on Friday it will postpone new aircraft purchases planned for 2004 and 2005 due to falling world demand for air travel because of the war in Iraq.
Enrique Cueto, executive vice-president of Chile's flagship airline, said the postponed deals were worth $200 million and would likely be carried out one year later than planned.
"We are postponing investments of $100 million in 2004 and the same amount in 2005. The investments will be pushed back one year because traffic has not grown worldwide nor has it grown in Chile," Cueto told reporters.
The delayed purchases were part of the company's $1.5 billion program to replace its fleet with 27 new aircraft between 2002 and 2005. Its current fleet totals 55 planes.
Several international airlines have cut flights because of the impact of the U.S.-led attack on Iraq on travel plans, adding impetus to the downward spiral in air travel that began with the Sept. 11, 2001 hijacked airliner attacks on the United States.
LanChile, a passenger and cargo carrier, earlier this month announced plans to cut operating costs by $15 million in 2003 by shortening airplane rental contracts and modifying the terms of its rentals.
It nearly tripled its profit in 2002 to $30.8 million from $10.8 million the previous year but net earnings were still below 2000 levels. The company has units in Chile, Peru and Ecuador.
Cargo revenues represent about 40 percent of Lan Chile's total revenues.
Global Airline Crisis Claims Another
Tue Apr 1, 5:24 PM ET, By Greg McCune
CHICAGO (Reuters) - Air Canada, the world's No. 11 carrier, filed for bankruptcy protection on Tuesday and more major airlines announced cuts in jobs and flights to cope with the crisis in global aviation made worse by the Iraq war.
Never in the history of the aviation industry has it been hit with so many negative factors out of its control, and there are fears that more of the world's leading airlines could be forced into bankruptcy.
The spiral began with a slump in travel after the September 11, 2001 attacks in the United States, a slowdown in the world economy, a rise in aviation fuel prices, the outbreak of a new respiratory ailment in Asia that has further discouraged travel, and a war in Iraq that has inflamed the Middle East.
Air Canada cited all those setbacks in filing for protection under Canadian law on Tuesday, the first major airline to succumb to bankruptcy since the start of the Iraq war. Its move came just one day after the world's largest carrier, American Airlines, narrowly averted a similar fate by striking deals with major labor unions to sharply cut costs.
Shares in AMR Corp., American Airlines' parent company, surged 90 cents, or 43 percent, to $3 on the New York Stock Exchange on Tuesday as investors were relieved that it had managed to avert a bankruptcy filing.
But the union representing pilots at American Airlines said on Tuesday that about 2,500 pilots will be furloughed or retire over the next year as part of the deal with the airline.
The world's No. 2 airline, UAL Corp.'s United Airlines, already is under U.S. bankruptcy protection and struggling to restructure. Airline analysts predict more carriers could be forced into bankruptcy if the Iraq war drags on.
"Our industry is facing the worst crisis in its history," Association of European Airlines Secretary-General Ulrich Schulte-Strathaus said.
CHORUS OF CUTS
More major airlines joined in a chorus of cuts in flight schedules and jobs on Tuesday as they struggled to compensate for the decline in travel. Companies are discouraging all but essential air travel and many tourists have put off or canceled trips.
In Europe, KLM Royal Dutch Airlines said on Tuesday it would soon implement "far-reaching measures" to cut unit costs by 10 percent, and could not exclude layoffs.
The announcement followed similar moves by other major European airlines, including British Airways, Air France and Germany's Lufthansa.
Continental Airlines Inc. the No. 5 U.S. carrier, said on Tuesday it plans to trim its summer schedule by 2 percent because of poor demand and would have to cut more jobs than the 1,200 announced last month.
All the major U.S. airlines have trimmed schedules since the Iraq war started, and several have announced job cuts.
The U.S. government moved on Tuesday to provide some aid to struggling airlines, although the industry has already said it will not be enough. A key Senate panel approved a package of $3.5 billion in aid and a committee of the House Representatives approved a similar proposal for $3.2 billion.
The government aid would be in the form of reimbursement for expenses stemming from a post-Sept. 11 increase in security, and help in paying for liability insurance.
SARS CONCERN
As if a war and weak economy were not enough, the outbreak of pneumonia-like virus Severe Acute Respiratory Syndrome (SARS) has caused even more concern about travel, especially in Asia where it has had the biggest impact.
Concern about the spread of the virus intensified in the United States on Tuesday when California officials briefly quarantined an American Airlines plane originating in Hong Kong at San Jose International Airport after four people reported symptoms of the virus. Two of the people with symptoms were airline employees.
The virus has led to deaths in Hong Kong, Vietnam, Canada, Singapore and Thailand.
Some 27 percent of corporations surveyed by the U.S. Business Travel Coalition on Tuesday are banning travel to parts of Asia because of the viral outbreak, and another 8 percent said they are considering a ban. The group said it surveyed 180 large corporate buyers of travel services.
Travel to Hong Kong, mainland China and Singapore would be most affected by the corporate bans, it said.
