'US airlines may have to be nationalised'

US carriers may have to be nationalised to stay in business in the face of crippling post-September 11 security costs, the head of the airlines’ trade association has warned.

Carol Hallett, president of the Air Transport Association, said the American government must take responsibility for protecting the aviation system from new terror attacks.

The Bush Administration introduced a £1.65 passenger security fee on every flight after last year’s atrocities.

But Ms Hallett said most airlines were footing the bill themselves because they would lose business if they added the charge on top of the cost of the ticket.

She said: “The government must reject the false premise that the airlines and their customers can or should bear this national defence burden.”

While nationalisation would be “intolerable” it would be the only way for most US airlines to survive, she added.

Her warning comes as many European governments are denationalising carriers and instead relying on the free m to keep flight costs down.

The US airline industry is expected to lose at least £4 billion this year because of reduced travel and increased security costs.