WASHINGTON, D.C. — The following statement was issued today by Sonny Hall, President of the Transportation Trades Department, AFL-CIO, in reaction to the Air Transportation Stabilization Board’s rejection of a $1.8 billion federal loan guarantee for United Airlines.
“The Bush Administration’s Air Transportation Stabilization Board (ATSB) has violated Congressional intent by abusing the powers it was granted by Congress to provide short-term financial stability to the nation’s airlines in the aftermath of 9/11.
“The Board’s decision to deny United Airlines’ loan guarantee application is irresponsible, sends the industry into a financial tailspin, and reflects this Administration’s continuing disregard for the welfare of the nation’s airline workers and passengers, and their communities.
“The whole point behind the enactment of emergency airline relief legislation was for our government – through the ATSB – to stabilize the industry, not arbitrarily decide winners and losers and improperly interfere in the collective bargaining process. It has been 14 months since Congress took emergency action to assist the airlines and yet only a fraction of the $10 billion in loan guarantees has been approved.
“Congress clearly expected this board to quickly distribute cash and loan guarantee benefits that would slow down the airline industry’s financial hemorrhage and help air carriers and their workers survive the massive losses they experienced immediately following the brutal terrorist attacks. Instead, the ATSB has decided to impose its will in labor-management negotiations and render suspect and highly subjective opinions about what the future holds for the applicant airlines.
“Congress cannot tolerate the Bush Administration’s disregard for Congressional intent and must recognize that the Bush stabilization board will not do the right thing unless it is compelled to distribute these badly needed loan guarantees without further delay.”
TTD represents 35 member unions in the rail, aviation, transit, trucking, highway, longshore, maritime and related industries. For more information, visit www.ttd.org.