By Josh Mitchell
Of DOW JONES NEWSWIRES
WASHINGTON -(Dow Jones)- U.S. Transportation Secretary Ray LaHood said Wednesday he is open to studying the benefits of a government-run bank to finance improvements to airports and air traffic-management technology.
President Barack Obama has proposed a so-called infrastructure bank to finance improvements to highways, bridges, mass transit and inner-city rail. A bill in the U.S. Senate would create the bank, which would use a mix of tax dollars and private investment. Obama has suggested it would be run by engineers and other presidential appointees.
At an aviation summit organized by the U.S. Chamber of Commerce, a member of the audience asked LaHood whether the administration would consider using money from such a bank on aviation projects, such as the long-planned upgrade of the nation's air-traffic control system.
"I'm open-minded at this point to talking about it," LaHood said, adding that it was the first time he had been approached with the idea.
Some airline executives at the summit expressed disappointment that the government hasn't devoted more funds to aviation projects. LaHood pointed out that the administration set aside $1 billion in funds under the economic-stimulus package for airport improvements, and that it plans to provide funds for the planned air-traffic management upgrades, known as NextGen.
-By Josh Mitchell, Dow Jones Newswires; 202-862-6637; joshua.mitchell@dowjones.com
(END) Dow Jones Newswires
April 29, 2009 16:27 ET (20:27 GMT)