Washington Wire - 2006-05-15

IRS Under Pressure to Increase Mileage Allowance
The National Treasury Employees Union, which last year led efforts to win a temporary increase in the mileage reimbursement limit for taxpayers who use their cars for work, is at it again as prices at the pump hover around $3. NTEU president Colleen Kelley said in a letter to Internal Revenue Service commissioner Mark Everson that "we now find ourselves back in the same position" business travelers were last summer after Hurricane Katrina caused gas prices to jump. IRS temporarily increased the limit to 48.5 cents per mile in September 2005, a rate that was good until the end of the year. The limit for 2006 was set by the tax agency late last year at 44.5 cents per mile, a rate Kelley called "clearly insufficient." NTEU represents the tax collector's 100,000-plus employees. Employees who drive their own cars for work-related or charitable purposes can choose to either claim a deduction set by IRS for each mile driven or they can seek reimbursement for actual costs incurred, which requires extensive record-keeping. IRS declined to comment on Kelley's request.

Rep Warns of Mishandled 'Baggage Meltdown'
A U.S. lawmaker is warning of a "baggage meltdown" this summer as a record number of people take to the skies for the summer travel season. "As we enter the peak travel season, which will bring not only increased flight delays but increased baggage problems, the traveling public and our airlines may experience a baggage meltdown this summer," Rep. John Mica, (R-Fla.), chairman of the House of Representatives' transportation subcommittee on aviation, warned on May 3. The Air Transport Association this month warned that airline traffic grew to a record 11.5 million departures last year, resulting in a 77.6 percent load factor. This trend is expected to accelerate, said ATA, whose members transport 90 percent of all airline passengers and cargo. Mica said the crowded skies coupled with budget-cutting staff shortages at airlines could exacerbate a growing problem. The number of instances of mishandled baggage increased 23 percent from 2004 to 2005 to a rate of 6 bags per 1,000 passengers, he said. Airline passenger bags are mishandled because of weather, theft, human error and Transportation Security Administration screening. Mishandled baggage costs airlines about $2.5 billion each year. Mica said steps should be taken to reduce the "growing cause" of mishandled bags: screening by the Transportation Security Administration. He said speeding up the implementation of explosive detection systems at airports would reduce the number of human errors. "As planes fill to capacity this summer, more baggage turmoil is almost inevitable," Mica said. "Screening delays such as these can, and should, be eliminated through the use of better technology. To date, only 14 of our 429 commercial airports have installed in-line automated high-tech baggage screening systems." The 19 largest airlines, which account for more than 95 percent of total domestic operating revenue, reported mishandling 5.81 bags per 1,000 passengers in March, according to Department of Transportation data. JetBlue Airways reported the fewest errors, with 3.27 instances per 1,000 passengers. Atlantic Southeast Airlines reported the highest instances—15.12 reports per 1,000 passengers.

FAA Deploys Satellite System For Safer Air Travel
The Federal Aviation Administration is deploying a new navigation system to make air travel safer and increase capacity for more flights. FAA administrator Marion Blakey earlier this month said that the agency will spend $80 million next year on the satellite-based system, known as the Automatic Dependent Surveillance-Broadcast system. The regulator expects the system to be deployed fully by 2014. "ADS-B's importance can't be overstated," Blakey said. "It's absolutely critical to the future of aviation. The system, which has been tested at 40 locations and is being used by companies such as United Parcel Service, relies on global positioning satellites to pinpoint how fast an airline is traveling, its location and its direction. It would replace error-prone ground radar. The technology is "one of the most awesome occurrences in the history of aviation," according to Karen Lee, director of operations for UPS. FAA has been under pressure from the airline industry, especially the Air Transport Association, to overhaul what is regarded as an antiquated air traffic control system. ATA said passenger traffic reached record levels last year and loads are expected to increase. "Higher volumes of traffic, which are expected to continue to grow, strongly reinforce the need to modernize our antiquated air traffic control system," said ATA vice president and chief economist John Heimlich. "It is imperative that we implement technology upgrades and adopt procedures that will accommodate the growing demand being placed on the system by all users of air traffic control services and infrastructure. Without an effective transformation of the air traffic control system, the negative impact on our nation's economy will be severe."