Dear Senators Hollings and McCain:

The more than 200 undersigned organizations urge Congress to enact an emergency package of legislation to prevent the wholesale failure of the strategically important U.S. airline industry. The now obvious objectives of this reprehensible act-of-war on September 11 include crippling our economy. The U.S. airline industry is an economic fulcrum that impacts all of our industries. Virtually, all segments of the business travel industry stand behind our airlines and are signatories to this letter-major buyers of air transportation services, rental car, hotel, restaurant and travel management companies as well as other concerned industry participants.

Airlines face the perfect storm with a drop off in business travel earlier this year, record-setting labor contracts just taking effect and now this national catastrophe that has frightened leisure and business travelers away from airlines. Also, we do not yet understand what a U.S. military response might do to the oil, financial and other markets.

In addition to near-term revenues plummeting and expenses soaring, this national tragedy forever changes the economics of the airline industry and will require a top-to-bottom restructuring. Airlines will not be able to return to full, pre attack schedules because of new security procedures such as the requirement to sweep each plane for explosives prior to departure. Unit costs will increase substantially as the number of trips per day, per aircraft decreases.

Indeed, as frequencies on business routes are reduced airlines will find themselves with the wrong type of equipment, namely small instead of large jets. Most troublesome will be the deterioration of the economics of markets of fewer than 500 miles in length. Business travelers will likely opt for travel by car as new airport security measures add an hour or more to the check-in process and eliminate the time benefit of flying. If just a few full fare business travelers per flight choose the automobile that can be the difference between profit and loss.

The immediate and direct economic impact of this national disaster can be found in airline furloughs as evidenced by airline announcements that tens of thousands of employees must go. More than 125,000 airline employees will likely lose jobs as a fundamental industry downsizing and restructuring is painfully undertaken. The ripple effect will be enormous accounting for as many as 500,000 additional jobs lost as conventions are cancelled, rental car companies' assets idled, hotel lobbies quieted and restaurants emptied.

Businesses of all types and sizes are dependent on a financially viable airline industry to service their customers and grow their businesses. Likewise, thousands of communities will see business opportunities evaporate and their standards of living decrease if airlines are forced to eliminate vital links to the commercial centers of the U.S. and the world.

Importantly, 1992 is often pointed to as the worst year in airline history with airline industry losses pegged at $4.8 billion. Industry observers point out that we may be headed for a comparably bad year with a projected $5 billion dollar loss. However, the 1992 figure is overstated by some $2 billion because a balance sheet adjustment (SFAS 106) was required for all industries to account for future retiree benefits. Indeed, 2001 had already secured its place in history as the worst year in aviation history prior to September 11. Airlines face financial crisis.

The economics, consumer benefits and the future of the airline industry are forever changed. Looking long-term, we need financially healthy networked international carriers, but we also require a vibrant low-fare, point-to-point industry segment. Many of these carriers, like failed Midway Airlines, do not possess the cash flows, cash reserves or lines of credit to make it through this assault on America. Even the legacy of deregulation, Southwest Airlines, can fail. If we lose the low-fare segment of the industry to terrorism, it is highly unlikely it will ever be replaced as the capitalization requirements and market entry risks will have increased by an order of magnitude.

Terrorists turned our airlines into instruments of evil and destruction and aimed them at our citizens, our national psyche and our economy. The terrorists' aim of destroying the economic underpinnings of the U.S. economy must be denied at all cost. The U.S. Congress must act to avoid airline industry failure and to ensure its orderly restructuring.

First, Congress must quickly define United's and American's liability beyond their own aircraft, passengers and crew. The mere prospect of these two airlines being liable for billions of dollars in damage to the World Trade Center towers, other buildings and nearly 6,000 lives nearly guarantees their bankruptcy. The prospect of bankruptcy will cause United's and American's lines of credit to disappear, their shareholders to abandon them and their customers to book future flights on other airlines.

Second, Congress should include in a legislative package provisions to rescind fuel and ticket taxes for all U.S. airlines. Third, airlines require an immediate cash infusion of billions dollars to make up for lost revenues over the next few months as fearful, shell shocked travelers stay home. Finally, Congress should provide low-interest loans to enable this strategically vital industry to carry out the restructuring necessary for financial viability in an inalterably changed industry.

While we turn our attention to finding and responding to those responsible, and to preventing further transgressions, we must also intently focus on maintaining a strong system of air transportation, for economic and national defense purposes. We must through intelligent choices, and at all costs, rob these terrorists of the satisfaction of bringing down our entire airline industry and our economy.