Hawaii Congressmen Ask For Airline Bailout
Abercrombie: Hawaii Could Face Bankruptcy
POSTED: 5:22 p.m. HST September 19, 2001
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WASHINGTON -- Hawaii's delegation to Congress is among those pushing the hardest for the passage of a multi-billion dollar bailout of the nation's airline industry in the wake of last week's terrorist attacks in New York and Washington.
They say that Hawaii's economy could face catastrophic consequences should the airlines go under.
"Our state could easily face bankruptcy if we are not able to come to a conclusion and a resolution that will ensure to the traveling public that they can do so with safety and with confidence," Rep. Neil Abercrombie, D-Hawaii, said.
In hearings that began Wednesday, Congress is considering a request for $24 billion in direct cash, tax breaks and loans to the airlines. The airlines also want the federal government to take over security screenings and put armed marshals on every flight.
Abercrombie (pictured, right) is among those who say that those measures are essential and urgent.
"Not only will there be assistance to the airlines, assistance to the traveling public, but Hawaii will be able to make a case for security in the air and freedom to travel," he said.
Congress must also figure out how to pay for the programs.
Abercrombie favors a combination of tax-cut rollbacks and war bonds. Sen. Daniel Inouye, D-Hawaii, says that Congress can figure out how to cover the bailout later and that a federal security system could be paid for with a $1 per ticket surcharge.
Advocates for older Americans say that the government can use the Social Security surplus to help pay for the new measures. But they also say that the government had better be careful about it.
"What they definitely shouldn't do is be dipping into anything below the surplus in order to bail out people certainly without having a national debate about the issue," Hawaii AARP Director Greg Marchildon said.
Congress is promising nothing -- except to say that doing nothing could lead to an economic catastrophe.
Hawaii's major airlines, Hawaiian and Aloha, may not get much direct cash out of the bailout plan because the money is likely to be distributed based on how many miles they fly. But they could benefit directly from relaxed anti-trust rules and tax breaks, and indirectly by the flying passengers that larger airlines bring to Hawaii.
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Abercrombie (pictured, right) is among those who say that those measures are essential and urgent.
"Not only will there be assistance to the airlines, assistance to the traveling public, but Hawaii will be able to make a case for security in the air and freedom to travel," he said.
Congress must also figure out how to pay for the programs.
Abercrombie favors a combination of tax-cut rollbacks and war bonds. Sen. Daniel Inouye, D-Hawaii, says that Congress can figure out how to cover the bailout later and that a federal security system could be paid for with a $1 per ticket surcharge.
Advocates for older Americans say that the government can use the Social Security surplus to help pay for the new measures. But they also say that the government had better be careful about it.
"What they definitely shouldn't do is be dipping into anything below the surplus in order to bail out people certainly without having a national debate about the issue," Hawaii AARP Director Greg Marchildon said.
Congress is promising nothing -- except to say that doing nothing could lead to an economic catastrophe.
Hawaii's major airlines, Hawaiian and Aloha, may not get much direct cash out of the bailout plan because the money is likely to be distributed based on how many miles they fly. But they could benefit directly from relaxed anti-trust rules and tax breaks, and indirectly by the flying passengers that larger airlines bring to Hawaii.
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