US air industry 'teetering on edge of collapse'

The US and global airline industry is "teetering on the edge of collapse", according to Democratic Representative James Oberstar.

He says the first airline bankruptcies resulting from the crisis caused by last week's terrorist attacks are drawing near.

He said: " I think it's teetering on the edge of collapse. We've taken 1,000 aircraft out of service already in the US, that's 20% of the domestic fleet."

"They're bleeding at a rate of $360m dollars a day, their cash reserves are in some cases down to five or six days...but carriers won't wait until their cash is gone to go into bankruptcy," he stressed.

Mr Oberstar, the ranking Democrat on the House Transportation and Infrastructure Committee, is playing a key role in drafting legislation for an agreement worked out between Congress and the White House which is likely to extend $15bn in emergency aid to US carriers.

Senior Republican lawmakers, who also support extending $15bn in aid to the sector, have indicated that they would like to hold a vote on airline legislation today but both parties are still working to agree the final language of such a bill.

Oberstar has met with numerous airline chiefs, including Delta Air Lines chairman and chief executive Leo Mullin, this week who have been lobbying Congress to bail out the troubled industry.