Friday, May 16, 2003

What's the Buzz?


Airlines will get $2.3B for security

The Transportation Security Administration said it will disburse $2.3 billion in aid to 66 U.S. airlines to offset the costs of higher security requirements imposed since the Sept. 11, 2001, terror attacks.

The payments were authorized by a spending bill passed by Congress last month and was part of a package aimed at helping the struggling U.S. airline industry.

U.S. airlines lost a collective $10 billion last year and are expected to also lose billions this year.

Delta Air Lines, which operates its second-largest hub at Cincinnati/Northern Kentucky International Airport, got the largest allocation at $390.1 million. American Airlines will receive $361 million and United Airlines will see just over $300 million.

Erlanger-based regional carrier Comair, a wholly-owned Delta subsidiary, will get $3.8 million.

Nine of the 66 airlines, which are mostly large carriers such as United, were required to sign agreements with TSA that the top two executives cannot receive more compensation this year than they did last year. Such agreements were required by Congress.

The airline-ticket security fee, which is $2.50 per flight segment, will be suspended from June 1 until Sept. 30. The suspension of the fees is expected to save the airlines $700 million.

James Pilcher