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Monday, September 17, 2001

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Post-strike scenario: Administration weighing various options

By Sridhar Krishnaswami

WASHINGTON, SEPT. 16. Normality is a long way off in the U.S., especially in New York and Washington. All indications are that in spite of the best efforts to get back to the normal scheme of things, it is not going to be easy.

There are two ways in which the administration is looking at things. On the one hand, some are insisting that the normal schedules be started from Monday, the rationale being that an impression must not be given to the ``enemies'' that the U.S. can be brought to a grinding halt.

On the other hand is the notion that things cannot be brought back on schedule in such a short time. These are extraordinary times and it would take time for the country to bounce back. The football and baseball games, cancelled since last Tuesday, may resume tomorrow but the same cannot be said in a more general sense.

In Washington, for instance, there is loud thinking on whether the Reagan National Airport will ever be opened to normal traffic. The prestigious airport has the severe limitation of being so close to the seat of Government - the White House, Capitol Hill and the Pentagon.

One thinking is that bigger airplanes may be banned from the airport, letting the Dulles International take on the additional burden. In fact, the law-makers from far away areas had insisted on long-range flights at Reagan National giving them near direct links to their constituencies. Now, it is clearly seen as a liability in the context of the terror that has been unleashed. As New York clears the rubble, all eyes are on the financial markets which open for trading on Monday. Both the New York Stock Exchange and the Nasdaq have finished the test runs of their computers and communication systems so that trading can resume.

The airline industry, which has taken a tremendous financial hit in the last several days, has already started responding by way of announcement on layoffs and cuts in management operations. The industry was already under some strain and the thinking is that the state of the economy, the terrorist hits and uncertainties in air travel will make the problem worse.

Congress, which was quick to grant the President, Mr. George Bush, emergency appropriations for recovery and security to the tune of $ 40 billion, does not seem to be inclined to put together a package for the airline industry. The chairman of Continental Airlines has said that since the industry is in an unprecedented financial crisis, it needs immediate Congressional action ``if the nation's air transportation system is to survive.''

The law-makers are looking at many ways of assisting the airline - aid,loans and legislation for limited liabilities for air crashes. The amount of assistance being discussed is in the range of $ 2 billion to $ 12 billion. Congressional action, or the basis for one, is expected to come up this week.

The Bush administration has not said anything on the issue. The Secretary of Transportation is expected to meet the airline executives this week.

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