White House Wants Them To Pony Up $400 Million More

Airlines and their passengers already pay upwards of $2 billion a year for enhanced security in the wake of the 9/11 attacks. Now, the government is using a little-known budget procedure to demand another $400 million from the industry -- a straw that ATA CEO Jim May says just won't fly.

"The health of the industry remains fragile," May (above, right) told reporters after testifying Wednesday before the House Aviation Subcommittee. "As far as I'm concerned, it's a tax."

But some members of Congress say the airlines have done all right by the US government -- having received $15 billion in cash and loan guarantees from Washington since the terrorist attacks. Proponents of higher fees say the airlines really don't have to pay a thing for security. Instead, they argue, the airlines simply pass the costs on to their customers.

But May argued on Capitol Hill this week that the added $10 each passenger pays each way for increased security is making it tough to hike fares. He says the issue of airline security is a matter of national -- not industry-funded -- security and should be paid for by Washington.

FMI: www.airlines.org