Washington Wire - 2006-03-06

Bush Ticket Tax Hike Proposal Faces Renewed Fight

President George W. Bush's proposal to raise airline passenger taxes to pay for better security at U.S. airports is dead on arrival in Congress for a second straight year. Rep. Harold Rogers (R-Ky.), the chairman of the House appropriations subcommittee that approves the Transportation Security Administration, criticized Department of Homeland Security officials last month for seeking to double the $2.50 to $5 per leg after a similar proposal was soundly rejected last year. "The budget contains the perennial gimmick of raising aviation security user fees, even though Congress and the airlines have rejected this before," Rogers told TSA head Kip Hawley on Feb. 16. "This year, TSA is asking Congress to raise the aviation passenger security fees paid by airline travelers by roughly $1.4 billion and for the airlines to pay retroactive security costs of roughly $300 million. It may be very difficult to adopt this proposal this year." The proposal represents nearly one-quarter of the TSA's budget request. The Air Transport Association, the Washington trade group for the commercial airline industry, has renewed its opposition to the higher security tax, arguing financially struggling airlines will be forced to absorb the tax as competitive pressures prevent them from passing it on directly to passengers. The president's budget argues that it has made changes to the tax, such as imposing a flat $5 fee per flight rather than increasing it each leg of a trip, that better mirror actual use of airport security. The effect would be an increase in nonstop trips, the fee still would be capped at $10. "The single fee corresponds better with actual security screening, which normally occurs only once in a one-way trip, regardless of the number of trip segments," the budget proposal says. Despite the renewed opposition by Rogers and the ATA, there are signs the administration won't surrender as easily on the issue as it did last year. Homeland Security Secretary Michael Chertoff told USA Today late last month that passengers will get "more ticked off" if lines at airport security checkpoints get longer as a result of tightening budgets. "Of course, the worst thing would be if something happened and a plane blew up," Chertoff said. "That would be a real shot at the heart of the airline industry. So they've got a real interest in making sure we have adequate funding for this."

Air Traffic Controllers, FAA Talks In Mediation

The National Air Traffic Controllers Association has agreed to use a mediator to resolve a long-simmering contract and salary dispute with the Federal Aviation Administration when it launches a new round of talks March 6. "We are unhappy with the pace of the negotiations in the last two weeks," association president John Carr said. "Our goal from the very first day of talks was to reach a voluntary agreement with the FAA. We still believe that agreement is possible, but we now believe a mediator can help get us to that goal." The union previously had rejected an FAA demand that a mediator be used. Major issues remain unresolved, such as sick leave and salaries, the union said. FAA administrator Marion Blakey insisted air traffic controllers got a sweet deal in 1998, the last time the contract was negotiated, and said the agency can't afford to pay higher salaries. The current average salary for a controller is about $166,000, including benefits. Failure to cement a deal would send the issue to the Republican-controlled Congress for a 60-day review. If Congress chooses not to intervene, FAA can impose its contract terms on the union.

Study Finds 'Unsafe Conditions' With Aircraft Fuel Tanks

A government study has concluded "unsafe conditions" remain on some Boeing and Airbus aircraft, even after efforts to minimize the risk of a fuel tank explosion, because little was done to address ignition-related problems in their fuel systems. The study by Sandia National Laboratories focused on fuel-tank directives for 18 Boeing 737s and Airbus SAS A320s and concluded only a handful actually reduced any risk of an accidental explosion. It didn't name any airlines. "Both Airbus and Boeing fuel system designs allowed undetected, ignition-related failures on more than one flight," according to the report, released by the Federal Aviation Administration. The government has been trying to avoid another catastrophic event like the explosion of TWA Flight 800 off the coast of Long Island in 1996. The National Transportation Safety Board concluded it was caused by an ignition in the fuel tank. At least three other explosions were linked to a similar cause. FAA released the report to bolster support for a rule it proposed in November to require airlines to take steps to reduce the possibility of such explosions. The modifications called for by the rule are projected to cost the industry $808 million over the next half-century.