Says Carriers "Must Be Prepared To Fend For Themselves"

Put your hands back in your pockets, boys. It looks like Congress isn't handing out anymore federal aid to ailing airlines.

Rep. John Mica (R-FL), Chairman of the House Aviation Subcommittee (right), told airline executives Thursday they "must be prepared to fend for themselves." The announcement could spell big trouble for financially troubled carriers -- perhaps none more than United Airlines.

Still smarting from the 9/11 attacks and now plagued by sky-high fuel costs, commercial US airlines say they expect to lose another $3 billion this year. Already, Washington has spent more than $20 billion in cash grants and loan guarantees to the airline industry. But Mica seemed clear that this is where Congress draws the line.

"Congress is not going to underwrite losing airline operations," he said.

Well, what about relief from the high costs of increased security?

Nope, don't look for that either. Homeland Security Undersecretary Asa Hutchinson told Reuters Thursday that while the government can provide direction on security matters, it's up to the industry to pay for them.

"Security is the lifeblood of the airline industry and that cannot be diminished," Hutchinson said. "I do expect them to be a persistent voice for sharing the burden of that security, and that will be an ongoing debate."

FMI: www.air-transport.org