nbta government affairs chicago bta education day june 5, 2009 c. stewart verdery, monument policy...
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NBTA Government AffairsChicago BTA Education DayJune 5, 2009
C. Stewart Verdery, Monument Policy Group& NBTA Government Affairs Consultant
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Overview
• NBTA Government Affairs Priorities
• Travel Regulation
• FAA Reauthorization
• Next Generation Air Transportation System
• Other Issues Worth Watching
• Questions and Answers
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Airline Performance & Aviation Congestion• NBTA believes Congress and the Administration
should resist micromanagement of airline service, but require enhanced reporting so consumers can accurately judge airline performance.
• NBTA filed comments with DOT in March regarding passenger protection issues
• Final Rule from DOT expected shortly and could include recommendations from the Tarmac Delays Task Force
• DOT dropped their proposal for slot auctions at New York area airports
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Domestic Registered Traveler (RT)
• RT offered at 21 airports – enrollment over 250,000o TSA Authorization Bill in the House of
Representativeso NBTA supports enhancement of RT’s risk
management and threat assessment protocols o Initial views of RT by the Obama Administration
have been positiveo http://www.tsa.dhs.gov/approach/rt/index.shtm
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Terrorist Watch Lists and Redress
• NBTA supports Congressional passage of redress legislation & the implementation of Secure Flighto FAST Redress Act
• Passed the House in February 2009• Senate has yet to introduce their version of the bill
o Secure Flight• Will require full legal name, gender, and date of birth from
carriers who will in turn require for reservations• Should decrease watch list false positives
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Traveler Taxes
• Rental Car taxes• NBTA has been successful in fending off several proposed
increases at the state level• Federal legislation to end discriminatory rental car taxes failed
to gain traction
• Non-Refundable Airline Ticket Tax Refunds• Government Accountability Office study request• GAO study results will be used to urge Congressional Action
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Visa Waiver Program and ESTAo 8 countries added in 2008o Further expansion requires US-VISIT Exit
• Exit pilots began on May 28o TSA at Atlanta
o CBP at Detroit
o Electronic System for Travel Authorization (ESTA)• Requires VWP travelers to apply online before traveling to US• ESTA is good for 2 years after approval • Requirement in place as of January 13, 2009
o Strict enforcement delayed
• NBTA supports enforcement flexibility and airport enrollment options
• www.cbp.gov/esta
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International Registered Traveler• NBTA supported the creation and funding of
the Global Entry Program• Customs and Border Protection (CBP) mobile enrollment first
used at NBTA Committee Summit
o Global Entry currently at 7 airports• Atlanta, Chicago, JFK, LAX, Houston, Miami, Washington
Dulles• CBP is waiting for OMB approval before additional expansion• Approved applicants skip immigration processing• www.globalentry.gov
o In April, CBP launched the first bilateral agreement with a foreign government - the Netherlands
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WHTI and Model Ports• Western Hemisphere Travel Initiative
o On June 1, 2009 WHTI compliant documents became a requirement for land and sea entry
o Acceptable forms of documentation include a Passport, Trusted Traveler Card (NEXUS, SENTRI, or FAST/EXPRES), U.S. Passport Card, or Enhanced Driver’s License.
o Strict enforcement not yet being practicedo State Department: http://travel.state.gov/travel/cbpmc/cbpmc_2223.html
• Model Ports of Entryo Improve entry experience of U.S. and international travelerso Implemented at top 20 international arrival airports in U.S. o $40 million for the program in FY09
• $25 million for 200 additional CBP officers, $6.5 million for CBP overtime at Model Ports locations, and $8.5 million for Model Ports equipment and services.
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2009 Agenda – New Issues
• Energy and Climate Changeo NBTA supports comprehensive energy legislation to
increase energy supplies, conservation, and tax incentives
o Airlines with new fleets very worried about difficulty of further improvements
• Transportation Infrastructureo Investment in high speed rail, intermodal connections,
and compensation for security costso Stimulus contained billions for infrastructure
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Travel Regulation• Backlash against Executive Compensation and
spending by companies receiving assistance from Trouble Assets Relief Program (TARP)
• Senator Christopher Dodd (D-CT) inserted provision in Stimulus billo Treasury Department to define “excessive” and “luxury”
expenditureso The timing for the required rule-making is unclear
• The travel industry developed best practices guidelines for companies o Urging Treasury and Congress to endorse
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Travel Regulation II• Senators Kerry and Feinstein and Reps.
Cummings and Maloney have also introduced legislation
• Over 8,000 letters sent to the Administration and Congress by NBTA members:o http://capwiz.com/nbta/issues/alert/?alertid=12773376
• U.S. Travel Association, NBTA, and other travel organization launched “Meetings Mean Business” campaign on March 4o www.meetingsmeanbusiness.com
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Federal Aviation Administration Reauthorization
o House passed FAA Reauthorization on May 20• Provides $10.1 for development and implementation of the
Next Generation Air Transportation System (NextGen) through 2010
• Bans cell phone voice communication on commercial aircraft
• Increases maximum Passenger Facility Charges (PFC) from $4.50 to $7.00 (NBTA did not support this provision)
o NBTA pushed for NextGen money in the Stimuluso Randy Babbitt confirmed as FAA Administrator on
May 21
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Benefits of NextGen• Stimulus to overall economy
• Enables job creation, global commerce • Facilitates growth of travel, tourism, manufacturing and
other sectors• Creates opportunity to export new technologies• Preserves U.S. leadership in aviation safety, environmental
performance and technology
• Improved customer service via reduced flight delays, greater system capacity
• State-of-the-art space-based ATC system could potentially triple capacity for flights
• Reduced delays mean significant savings
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Benefits of NextGen II• Improved environmental performance through more
efficient aircraft routing and spacing, reducing fuel burn and GHG emissions by up to 12 percento Even a 6 percent fleet wide reduction in fuel burn results in fuel
savings of 1.16 billion gallons and emissions savings of nearly 11 million metric tons or 24 billion pounds of CO2
• Improved financial picture for airlines/employees via greater reliability of operations, fewer delays, improved travel/shipping times and less fuel burno Able to retain and create jobso Able to modernize fleets to further improve emissions reductionso Able to compete more effectively against non-U.S. competitors
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Inefficiencies of ATC can be addressed through NextGen
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Washington, D.C.
Boston, MAOptimal Route Burn5883 lbs.
Actual Route flownActual Route flownActual Route flownActual Route flown
Actual Route Burn7376 lbs.
Additional burn due to reroute1493 lbs
Large Air Carrier: DCA to BOS, December 2008
Optimal RouteOptimal RouteOptimal RouteOptimal Route
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Why We Need NextGen Now• Our nation’s antiquated air traffic control (ATC) system is
woefully inadequate and imposes a significant drag on the nation’s economy
• Due to system deficiencies, drivers using GPS in their cars have more capabilities than most aircraft operating in today’s airspace
• The time and opportunity to accelerate transformation of the system is now
• The acceleration of NextGen will create jobs, reduce delays and reduce environmental impacts
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Other Issues to Watch
• REAL ID and ID’s for Travel
• TSA unionization
• Travel Promotion Act
• Olympics bid
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Questions or Comments?
C. Stewart Verdery, Jr.Partner and Founder, Monument Policy Group and
NBTA Government Affairs Consultant
www.monumentpolicy.com
(202) 719-9999