[Congressional Record (Bound Edition), Volume 147 (2001), Part 15]
[House]
[Page 20646]
[From the U.S. Government Publishing Office, www.gpo.gov]



AIRLINE STABILIZATION BOARD SHOULD NOT HAVE FINANCIAL STAKE IN AIRLINES

  (Mr. FLAKE asked and was given permission to address the House for 1 
minute and to revise and extend his remarks.)
  Mr. FLAKE. Mr. Speaker, several weeks ago we passed the airline 
bailout bill. I voted against that bill for several reasons, one of 
which is right now an airline stabilization board is deciding which 
airlines win and which lose. That is not a good position for the 
Federal Government to be in.
  The Federal Government as a regulator of the airlines should not be 
in a position to pick winners and losers in the economy. What 
complicates this issue is that the legislation authorized this board to 
take a financial stake in those airlines through warrants, stock 
options, or other equity instruments. That is a bad idea, and I would 
encourage that board not to do so. By taking a financial position in 
those airlines, that board will then have an interest in making sure 
that those airlines that they choose to win will succeed, and that 
those airlines they choose not to fund and give loan guarantees to to 
fail.
  Mr. Speaker, as a regulator, the Federal Government should not be in 
that position. I would encourage that board not to take a financial 
position in airlines.

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