The Regional Airline Association (RAA) and the Air Transport Association (ATA) last week asked Congress for relief from the higher fuel bills triggered by Hurricane Katrina's damage to gulf oil facilities.

The industry wants a tax holiday on the 4.3 cents per gallon tax on jet fuel since the carriers are absorbing the tax as well as the bulk of the price increase.

It also wants Congress to increase the Essential Air Service (EAS) budget to $127 million to cover the fuel price hikes. It is also asking that Congress order EAS administrators to follow a 2003 law and grant EAS carriers fuel adjustments to their contracts.

In addition, RAA asked that recent changes to the fuel tax be rescinded so that carriers are not paying a higher tax only to be rebated later. Since regionals don't sell airline tickets, smaller carriers are having cash flow problems until the rebates arrive.

After the congressional hearing, one industry lobbyist said some of the changes may be incorporated into legislation funding repairs to transportation facilities damaged by Katrina.