SECTION: NATIONAL/FOREIGN; Pg. A11

LENGTH: 304 words

HEADLINE: FIGHTING TERROR SECURITY / INSURANCE LIMIT;
LOGAN LIABILITY CAPPED FOR SEPT. 11 TERRORISM

BYLINE: Globe staff

BODY:
The aviation-security bill approved yesterday by Congress includes a cap on liability for Logan International Airport and the two other airports from which hijacked planes departed on Sept. 11, Senator John F. Kerry said yesterday.

At a press conference near his Beacon Hill office, the Massachusetts Democrat said the bill limits Logan's liability to the amount of its liability insurance.    "The liability cap was there for airlines, but not there for airports," said Kerry, referring to earlier legislation that protected airlines from liability related to the crashes.

Phil Orlandella, a spokesman for the Massachusetts Port Authority, which runs Logan, said he was not familiar with this provision of the legislation.

But Marshall Carter, chairman of a state commission reviewing Massport, told the Associated Press that the agency is insured for about $1 billion.

"That's very important," Carter said, adding Logan's potential legal liability could hurt its ability to underwrite debt. "With financially troubled airlines, the last thing you need is financially troubled airports," Carter told AP.

The cap, which was part of the House version of the aviation-security legislation, was added to the final bill during the conference with the Senate.

A Kerry aide said the provision was not added by Kerry and also applies to Newark International Airport in New Jersey and Dulles International Airport near Washington, D.C.

On Sept. 11, American Airlines Flight 11 and United Flight 175 were hijacked after taking off from Logan and slammed into the World Trade Center towers. American Flight 77 from Dulles crashed into the Pentagon a short time later. United Flight 93 from Newark plunged into a field near Pittsburgh after passengers apparently fought for control of the jet with hijackers.

LOAD-DATE: November 19, 2001