The stock market plunged after Sept. 11’s attacks, and every sector of the economy felt the drop; however, the airline industry has been particularly hard-hit. President Bush signed into law Saturday a bill that will give $15 billion in aid to the airline industry.
Bipartisan support pushed the bill through Congress quickly. The House approved the measure late Friday night with a 356-54 vote. The bill passed the Senate 96-1.
“I commend the Congress for their cooperation and quick action in passing responsible legislation that will improve passenger safety, help the victims and their loved ones, and keep Americans’ airplanes flying while the airlines develop long-term viability plans,” Bush said in a statement Saturday.
The measures are aimed at helping airlines on the edge of bankruptcy due to the fall in business since the attacks.
The bill will provide $5 billion in direct federal aid and $10 billion in loan guarantees for the airline industry.
The bill also placed limits on salaries of airline executives. If an airline accepts government aid, it is prohibited from giving a raise to any employee who made more than $300,000 in the year 2000.
Congress and Bush also agreed on a provision to help those in need while ensuring airlines do not go bankrupt because of lawsuits.
The victims and their families will receive compensation in exchange for the assurance that they will not sue the airline.
Layoffs have already plagued the airline industry, with more than 100,000 employees already without jobs.
Support for the measure was widespread; however, concerns existed in a number of areas.
U.S. Rep. Tammy Baldwin, D-Wis., said she was concerned about not allowing compensation for those who have already lost their jobs in the airline industry.
Other concerns among legislators included why the airline industry was the only industry receiving federal aid.
Last Monday when Wall Street reopened, airline stocks fell drastically. Although the stocks have rebounded slightly, analysts are still unsure about the future.