US commercial airlines are expected to file for bankruptcy within days unless they get up to $24 billion from federal funds, airline executives warned the White House yesterday. Documents prepared by the airline industry show that the nation's air travel system is on the point of collapse because of losses from the closure of airports last week and reduced demand as Americans seek other means of transport.

Airline chief executives made their appeal in person yesterday to US Transport Secretary Mr Norman Mineta in Washington. Mr Mineta told a press conference afterwards that the Bush administration would seek to get Congress approval for an aid package. "We will go to the (Capitol) Hill and work with Republicans and Democrats and try to get this done as quickly as possible and have a package by the early part of next week," he said.

The prospect of giving federal money to the airlines is however causing divisions in Washington - Congress refused to consider a $12 billion emergency package on Friday - and raises questions about US commercial traffic in Europe, where EU regulations forbid European airlines to accept government subventions.

It also raises the prospect of other industry sectors badly hit by the attack, such as insurance, hotels and related travel services, seeking federal aid.

The plight of the airlines was starkly outlined by Delta Airlines chief executive Mr Leo Mullins after meeting Mr Mineta. The terrorist hijackings had had a tremendous impact on the aviation business, he said.

During the unprecedented two-day shutdown of US air space and the days following, when airports were slow to reopen, the airlines were not taking in any revenue but were paying out very heavy fixed costs. He reckoned revenues would be down 40-50 per cent in the next few weeks.

The airlines, which lost an estimated $1 billion in the last week, also want protection from liability cases arising from the crashes involving four hijacked passenger aircraft last Tuesday and for federal authorities to take over security operations at airports from the airlines.

Mr Mullins said that, without help, airlines could become a "major economic casualty" of the terror strikes. "Without immediate and significant US government financial support, most of the US airlines that make up the commercial air transportation system will go bankrupt and then likely liquidate shortly thereafter," the airlines said in their submission.

"Based on the forecast reduction in airline revenues and the current cash positions of the US carriers, US carriers are expected to commence filing for Chapter 11 bankruptcy within days...Within 90 days, it is estimated that many of the airline industry will be in Chapter 11."

The airlines said that on August 31st the aggregate industry cash balance was $9 billion. Airlines would have eaten through their cash reserves and would need to find $1.1 billion by November and $15 billion by the end of June 2002, the documents stated.

United Airlines, which employs 200 people in Dublin at a reservation centre, said yesterday it would cut up to 20,000 jobs and reduce flights.