BREAKING NEWS

Airline Bailout Plan Approved by Congressional Leadership

Congressional leaders and White House officials agreed on a substantial airline assistance package, which would include $15 billion in cash and loan guarantees and a victims compensation fund designed to limit lawsuits that might otherwise bankrupt American and United, whose planes were hijacked and destroyed in the terrorist attack on Sept. 11.

The plan calls for airlines to be given $5 billion in cash immediately and $10 billion in loan guarantees to compensate for a sharp drop-off in customer demand, skyrocketing insurance premiums and rising costs for security. The agreement, approved by House and Senate leaders in both parties this morning (Friday, Sept. 21), was negotiated with Transportation Secretary Norman Mineta and White House Budget Director Mitch Daniels. The bill is expected to pass both houses of Congress within the day.

The White House also agreed to earmark $3 billion of the $40 billion Congress has already approved in emergency spending to upgrade airport and airline security

. In addition, the plan includes government insurance for U.S. carriers that have trouble arranging for coverage from private insurance companies.