Washington Wire: Virgin America Pushes For DOT Clearance

Virgin Group's would-be U.S. low-cost carrier Virgin America last week appointed Samuel Skinner, former U.S. Secretary of Transportation and White House chief of staff under President George H.W. Bush, as vice chairman of its board of directors, as part of an effort to persuade the U.S. Department of Transportation that the startup airline meets federal American-ownership and control laws. DOT in December rejected Virgin America's bid to fly because it said that the carrier had not demonstrated that it was at least 75 percent owned and controlled by U.S. citizens. Federal law prohibits more than a 25 percent foreign stake in domestic airlines (BTN, Jan. 22). Virgin America last week also said it had filed documentation with DOT concerning proposed changes to its ownership and management structure. "Not only have we agreed in less than a month to make fundamental and sweeping changes in response to DOT's tentative decision, but now we have given everyone complete transparency down to the minute detail to show our good faith and seriousness to get this application approved," said Virgin America spokesperson Gareth Edmondson-Jones. "We're absolutely committed to satisfying DOT's concerns about our citizenship." The carrier also announced it would supplement its planned inaugural route from its San Francisco base to New York's John F. Kennedy International Airport with routes to Washington-Dulles, Los Angeles, San Diego and Las Vegas from San Francisco.

FAA To Raise Pilot Retirement Age To 65
The Federal Aviation Administration proposed lifting an age cap for commercial pilots, increasing the mandatory retirement age to 65 from 60. The move comes after intense lobbying by some airlines and pilots to raise what was viewed as an arbitrarily set cap that unnecessarily forced competent pilots out of their jobs. FAA administrator Marion Blakey said a four-month investigation by a panel of airline, labor and medical experts concluded the change was warranted. "It's time to close the book on age 60," Blakey said last week in a speech to the National Press Club in Washington, D.C. "The retirement age for airline pilots needs to be raised." The United Nations' aviation organization in November said airlines could allow pilots up to age 65 to fly as long as the co-pilot was under the age of 60, the standard the United States will follow if the FAA rule is adopted, as expected. The 60-year age limit had been in place since 1959. Blakey said the FAA had satisfied its long-standing concern about safety in making the change. "A pilot's experience counts—it's an added margin of safety," said Blakey. "Foreign airlines have demonstrated that experienced pilots in good health can fly beyond age 60 without compromising safety." While some individual airline unions support the change, the Air Line Pilots Association said it supports the age-60 cap. "ALPA will use its credibility and influence to protect pilot interests throughout the process," ALPA head Capt. John Prater said. The Air Transport Association, which represents most airlines, said it is neutral on the change in part because it would be complicated to ensure 65-year-old pilots are paired with under-60 co-pilots.

Passport Applications Surge In U.S. And Canada
Canada and the United States are reporting record numbers of new passport applications ahead of a new U.S. rule requiring Canadians to present the document when they enter the United States by air. Passport Canada said it processed 355,000 applications in November, a 33 percent increase over the same month a year earlier. In the United States, a record 12.1 million passports were issued to U.S. citizens in the fiscal year that ended Sept. 30 and the U.S. State Department said it expects to issue 16 million this year, as the Canadian government continues to express concern about the long-term economic effect of the new requirements on travel between the two countries. The passport requirement took effect Jan. 23 and applies to all air travel between the United States and Western Hemisphere countries, including the Caribbean, and will extend to land and sea border crossings in 2008. It was implemented at the recommendation of the commission that studied the Sept. 11, 2001, terror attacks. "We are taking steps to reduce waiting times without jeopardizing the security and the integrity of the Canadian passport," said Gérald Cossette, Passport Canada's CEO. The Conference Board of Canada concluded in a study last year that the new passport requirements will reduce U.S. trips to Canada by 9.5 percent by 2010. The National Business Travel Association has warned the change will make it harder for U.S. companies to compete globally.