NBTA Government AffairsChicago BTA Education DayJune 5, 2009

C. Stewart Verdery, Monument Policy Group& NBTA Government Affairs Consultant

Overview

• NBTA Government Affairs Priorities

• Travel Regulation

• FAA Reauthorization

• Next Generation Air Transportation System

• Other Issues Worth Watching

• Questions and Answers

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

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

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

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

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

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

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.

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

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

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

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

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

14

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

Inefficiencies of ATC can be addressed through NextGen

16

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

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

17

Other Issues to Watch

• REAL ID and ID’s for Travel

• TSA unionization

• Travel Promotion Act

• Olympics bid

Questions or Comments?

C. Stewart Verdery, Jr.Partner and Founder, Monument Policy Group and

NBTA Government Affairs Consultant

stewart@monumentpolicy.com

www.monumentpolicy.com

(202) 719-9999