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Case co-sponsors airline aid bill
Hawaii Congressman Ed Case is co-sponsoring federal legislation to provide immediate temporary relief totaling approximately $600 million for U.S. airlines, including Aloha and Hawaiian.The Travel Related Industries Protection Act, also known as HR 1380, would suspend for two years the federal excise tax that U.S. commercial aviation pays on fuel. Normally, commercial aviation fuel is subject to a federal excise tax of 4.3 cents a gallon, payable into the aviation trust fund for air travel-related federal efforts. The cost of fuel has risen from 57 cents a gallon in February 2002 to $1.20 a gallon last month. Fuel represents about 10 percent to 15 percent of total airline costs.
"A healthy airline industry is crucial to a healthy national economy, but it is absolutely indispensable to our entire way of life in Hawaii," Case said. "Our airways are the highways, railways and seaways of the rest our country all rolled into one; we have no redundancy ... It is entirely appropriate for or government to help preserve Hawaii's virtually sole transportation link."
HR 1380 is one of two initiatives under consideration in Washington to assist the nation's airlines. The other, which Case also supports, would have the federal government pick up the costs of increased post-9/11 security expenses.
American Air mulls bankruptcy
CHICAGO >> American Airlines has stepped up talks to secure about $1.5 billion of financing for possible bankruptcy, and may file under Chapter 11 as early as next week, sources familiar with the matter said today.The AMR Corp. unit is considering an early filing to preserve cash, which is dwindling due to lower bookings since the start of the Iraq war, the sources said.
"Bookings are terrible," a banking industry source said. "It's a liquidity imperative to file as soon as possible."
Another banking industry source said the airline had given itself until March 31 to reach deals with unions, lessors and other groups.
"Timing-wise, that's not going to happen," said the source, who declined to be named.
Spokesman Todd Burke declined to comment, saying American was doing everything possible to avoid bankruptcy.
United reaches pact with pilots
CHICAGO >> The leaders of the pilots' union at bankrupt United Airlines said today they have reached a tentative agreement with the airline on unspecified labor cost cuts.United has been scrambling to reach long-term deals with its unions on wage concessions and work rule changes. The airline has already asked a bankruptcy court judge to consider throwing out existing agreements if it cannot reach new deals by May 1.
U.S. hotel revenue off 8% in war's first week
LOS ANGELES >> U.S. hotel room rates and occupancy both declined sharply in the first week of the war on Iraq, confirming fears the conflict is keeping travelers at home, the industry's benchmark survey said yesterday.Revenue per available room, which reflects prices paid for occupied rooms, fell 8.4 percent from a year ago to $51.76 in the week ending March 22, a survey by industry tracking firm Smith Travel Research showed.
The high-end properties in the biggest cities, which are also the biggest money-makers in the sector, did even worse, analysts said.
Airlines say war hurts bookings and jobs
WASHINGTON >> The trade group representing the largest U.S. airlines said yesterday that domestic bookings are down 20 percent over the next 60 to 90 days as travel demand slips due to the war in Iraq.International bookings are down more than 40 percent in some regions, James May, president of the Air Transport Association, said in a conference call.
May said more than 10,000 jobs in the airline industry have been eliminated in the first week of the Iraq war and thousands more are under consideration as air carriers grapple with the impact of the war.
The Air Transport Association is seeking federal government aid to help offset losses incurred by the airline industry.
FCC may vote in June on ownership rules
WASHINGTON >> The Federal Communications Commission has tentatively scheduled a June 2 meeting to adopt new media-ownership rules, Chairman Michael Powell said today. The federal agency is considering changes to six rules that restrict mergers among newspapers, TV networks and radio stations.Powell said he wants to ease rules that prevent newspapers from owning television or radio stations in the same market.
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