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American Morning

America's New War: Senator Fitzgerald, One of Few Who Oppose Airline Bailout

Aired September 26, 2001 - 10:47   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
JOHN KIND, CNN ANCHOR: More evidence just in of the devastating impact of all this on the airline industry: Delta Airlines announcing it is furloughing 13 thousand workers, cutting 13 thousand jobs. The official announcement expected at the top of the hour. We will bring you that live. That's on top of 75 thousand layoffs already announced by other U.S.-based airlines.

Now, the Congress and the president trying to act quickly to help here, a $15 billion bailout package for the industry cleared the Congress quickly with overwhelming support. The president signed it into law. Five billion of that goes directly in cash payments to the airlines, 10 billion more in loan guarantees.

One dissenting voice joins us this more, Senator Peter Fitzgerald of Illinois, a Republican, with us live on Capitol Hill this morning.

Sir, why not? You here these economic numbers and devastating impact on the airlines. Why do you think this is not such a good idea?

SEN. PETER FITZGERALD, (R) ILLINOIS: Well, it's a misnomer to call airline bailout. It wasn't an industry bailout, it was specifically a bailout for the shareholders or the investors in airlines. You just described all the layoffs that Delta is planning to announce today, there's nearly 100 thousand layoffs in the airline industries. The bill Congress passed left the workers in the airline industry high and dry, but it indemnified shareholders or stockholders from enduring losses through the end of the year.

If we had simply paid the airline -- or compensated them for their losses the three days they were shutdown, I could have understood that, But Congress paid them many times the losses. They didn't lose $5 billion in three days, and we're paying many times the losses they incurred over the three-day period.

Delta lost $210 million in that three day period they were shutdown. They're going to get over $700 million in up front cash.

Now, the question that I have is: If we're paying for a -- to compensate the airlines and hold them harmless because of a general downturn in their business, then what do we say to all the other industries that are meeting on hard times right now, such as hotels, the cab drivers, all the tourist-related industries, car-rental agencies, travel agents? They're not going to get any help on Capitol Hill and the reason they're not going to get a bailout is they don't have the raw, political clout that the airline executives have on Capitol Hill.

KING: Well, Senator, let's ask you this then: The president going to your state, Chicago, tomorrow to address airline workers, to thank them for their courage in the wake of all this. Do you believe the president should also come before them and say the federal government will help the workers dislocated by this?

FITZGERALD: I certainly hope so. I think that would be the right thing to do. The airline workers oppose the bailout bill, because it left the taxpayers and the airline employees high and dry. And it was specifically a bailout for the shareholders, and I don't think it was fair to the taxpayers, the employees, or to the other industries. We have numerous industries that have gone into decline since September 11th. The airline industry, in my judgment, took advantage of the crisis. They were in lobbying on Capitol Hill before the memorial service at the National Cathedral, and I think that they got far too much, an overreach, and took advantage of the American people at a time of crisis, and took advantage of their generosity.

KING: Senator Peter Fitzgerald, Republican from Illinois, thanks you for your thoughts today, sir. Obviously, this a development we will continue to follow in the days ahead.

FITZGERALD: Thanks, John.

KING: Thank you, Senator. Thanks for joining us this morning.

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