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92_HR1119 LRB9218365DHgc 1 HOUSE RESOLUTION 2 WHEREAS, United Airlines is the largest air carrier 3 headquartered in Illinois, the ongoing viability and 4 stability of United Airlines, a significant economic engine 5 for commercial activity throughout Northern Illinois, is of 6 paramount importance to the welfare of the State of Illinois 7 and its citizens; and 8 WHEREAS, United employs nearly 20,000 at O'Hare, Chicago 9 Reservations, World Headquarters, and other locations 10 throughout Northern Illinois; and 11 WHEREAS, United and its holding company, UAL Corporation, 12 also contribute over $84,000,000 annually in rents and 13 landing fees, passenger facility charges, and significant tax 14 revenue to the region and the State of Illinois; and 15 WHEREAS, Each day, more than 800 United flights takeoff 16 or arrive at O'Hare and more than 80,000 United passengers 17 arrive or depart from O'Hare. One United domestic passenger 18 arriving at O'Hare generates approximately $1,120 for the 19 City of Chicago and the State of Illinois. Each 20 international passenger generates approximately $2,310. 21 Because of United, almost 15,000,000 travelers a year 22 contribute to the region's economy; and 23 WHEREAS, United's Chicago Reservations Center makes 24 upwards of 18,000,000 bookings annually and, at the same 25 time, United Cargo employees process over 232,000,000 pounds 26 of mail and freight at O'Hare; and 27 WHEREAS, United was significantly impacted by the 28 September 11, 2001 terrorist attacks; with two of four 29 hijacked aircraft belonging to United, it was both a target 30 and a victim of the tragic events of September 11; and 31 WHEREAS, The dramatic drop in air travel since September -2- LRB9218365DHgc 1 11, 2001 -- especially high yield international and business 2 travel -- has and continues to have a significant 3 deteriorating impact on the financial condition of United 4 Airlines; and 5 WHEREAS, The Air Transportation Safety and System 6 Stabilization Act was signed by the President of the United 7 States on September 22, just 11 days after the terrorist 8 attacks of September 11, 2001; and 9 WHEREAS, The President of the United States described 10 this Act as providing "urgently needed tools" to assure 11 safety and immediate stability of our Nation's commercial 12 airline system and to establish a process for compensating 13 victims of terrorist attacks; and 14 WHEREAS, In order to compensate air carriers for the 15 losses associated with September 11, and to induce private 16 lending institutions to extend financial assistance to U.S. 17 airlines, the Stabilization Act provided direct grants for 18 air carriers and up to $10,000,000,000 in loan guarantees for 19 U.S. based air carriers; and 20 WHEREAS, The loan guarantee provision of the Act is meant 21 to assist those carriers that suffered losses due to the 22 terrorist attacks of September 11, and to whom credit is 23 otherwise not available in order to facilitate a safe, 24 efficient, and viable commercial aviation system in the 25 United States; and 26 WHEREAS, There is no cost to the U.S. Government or to 27 the American taxpayer, apart from administrative expenses, 28 unless the airline defaults on the loan and the U.S. 29 Government is called on to honor the guarantee; and 30 WHEREAS, United has outlined a sound financial recovery 31 plan with four basic tenets: expense reduction, revenue -3- LRB9218365DHgc 1 enhancement, employee-shared sacrifice, and financing and 2 liquidity; and 3 WHEREAS, United's updated ATSB loan application, dated 4 October 22, 2002, requesting $1,800,000,000 includes specific 5 labor cost reductions of $5,800,000,000 over the next 5 1/2 6 years, with the participation of all employee groups; and 7 WHEREAS, United Airlines has pledged specific non-labor 8 profit improvements of $1,400,000,000 and a process for an 9 additional $400,000,000 in savings; and 10 WHEREAS, United has pledged to work tirelessly to find 11 additional means of enhancing revenue and lowering costs; and 12 WHEREAS, United is in precisely the situation Congress 13 had in mind when it enacted the Air Transportation Safety and 14 System Stabilization Act; therefore be it 15 RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE 16 NINETY-SECOND GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that 17 we do hereby formally request and urge the Air Transportation 18 Stabilization Board, part of the United States Treasury, to 19 expeditiously approve United Airlines' application for a loan 20 guarantee; and be it further 21 RESOLVED, That suitable copies of this resolution be 22 immediately delivered to George W. Bush, the President of the 23 United States; Alan Greenspan, the Chairman of the Federal 24 Reserve Board; Norman Mineta, the Secretary of 25 Transportation; and Paul O'Neill, the Secretary of the 26 Treasury.
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