NY Times article on bailout link:


http://www.nytimes.com/2001/09/21/business/21LINE.html


I'm not sure what portion of this legislation that your calling welfare. I assume it's the 5 billion in cash that they are getting to offset the costs of the government mandated shutdown and subsequent lost business. First of all understand that even though Reagan "de-regulated" this industry it is still highly regulated. I refer you to the following passage from the article:


"The industry's frailty has made investors increasingly jittery, with some airline stocks shedding as much as 65 percent of their value this week. Recognizing the vital role air transportation plays in the economy, lawmakers say they want to help airlines stay afloat, without turning the assistance into a bailout that goes beyond the scope of last week's disaster."


Understand that this aid won't come close to compensating the airlines for all of the lost business and I'm not saying it should. It's simply an attempt to head off more serious problems down the road. Basically our economy needs the air transportation industry to function well. The administration and Congress recognize this fact. Another excerpt from the article:


"Since the attacks, airlines and the Boeing Company (news/quote), the leading aircraft builder, have announced layoffs of almost 100,000, and industry officials have said that at least three carriers might face bankruptcy if the help was not forthcoming."


The layoffs are happening even with the bailout package so expect the airlines business to have a significant downturn (thus significant losses) even with the $5 billion in cash compensation.