FAA Reauthorization Act of 2007--Continued

Floor Speech

FAA REAUTHORIZATION ACT OF 2007--Continued -- (Senate - April 30, 2008)

BREAK IN TRANSCRIPT

Mr. CORNYN. Mr. President, I am proud to join Senator Durbin and Senator Hutchison, the senior Senator from Texas, along with Senators Brown, Voinovich, Senator Bill Nelson of Florida, and Senator Lautenberg from New Jersey in support of this amendment which would strike section 808 of the FAA reauthorization bill.

I would like to explain why. The 30,000-foot view is, if enacted, it would impose a significant and unfair burden on airlines that have done the most to provide for secure retirements for their former employees or their employees who will retire.

This amendment will make sure Congress does not jeopardize the pensions of 50,000 of my constituents in Texas who depend on the airline industry for their retirement, their nest egg, that they will retire on when they leave active duty.

Also, if this amendment is passed, it will relieve a significant competitive disadvantage some airlines, not coincidentally a couple headquartered in my State, American and Continental, would operate under, if the Finance Committee proposal would prevail.

That is why I support striking section 808 of the FAA authorization bill. Section 808 would undermine the ability of some airlines to maintain their commitments to their workers at a time when our economy is becoming softer and more questions than answers are apparent with regard to what our economic future, at least in the short term, is going to look like. It would reduce the financial flexibility of airlines, precisely at a time when they need it the most.

Now, I think a little refresher on recent history is important. Because what has actually happened is, in 2006, the Pension Protection Act was passed, and to be blunt about it, what happened is it benefitted airlines such as Delta and some others around the country, while American and Continental were basically told to wait, there will be an opportunity later on to come back to take care of your concerns and level the playing field and to eliminate the preferential treatment that was given to some other airlines during the Pension Protection Act of 2006.

So patiently we waited. Last year's supplemental appropriations bill was the vehicle we used to correct the inequitable treatment created for airlines such as Continental and American in the Pension Protection Act of 2006. The act included language that is in the supplemental appropriations bill, language out of S. 119, that I introduced with Senator Hutchison. As I said, it corrected the inequity that was earlier created in the Pension Protection Act of 2006.

But now, section 808 in the Finance Committee provision would simply undo the corrective action that Congress undertook in the supplemental appropriations bill I mentioned a moment ago. It should not be a part of the bill, I would also say, that is about improving and modernizing the air traffic control system in this country. Why would we be messing with the pensions of 50,000 Texans who depend on those two major airlines for their retirement benefits in this bill? It makes no sense.

I believe it is unfair and would reverse the corrective action we were able to accomplish in last year's supplemental appropriations bill. I have worked hard, along with my colleagues I mentioned, to make sure those folks who work in the airline industry will have a pension when they retire. I will continue to do so. I sincerely believe that passing the Finance Committee provision, section 808, would jeopardize their retirement benefits; could, in all probability, result in more airlines becoming bankrupt with tremendous uncertainty injected in terms of how their pensions would be protected.

At a time when airlines and their employees are facing enormous challenges, Congress should not pull the carpet out from under their feet and get in the business of picking winners and losers by giving some airlines preferential treatment over other airlines.

I wish to extend my gratitude to the Senator from Illinois, Mr. Durbin, and my colleague, Senator Hutchison, for their leadership on this issue. I am proud to join them in this bipartisan amendment, which would strike section 808 of the FAA authorization bill, as I have described, and would, I think, make sure that what we do is keep the level playing field, not jeopardize the pensions of thousands of airline workers and would comport with fundamental fairness and equity.

I yield the floor.

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