WashingtonWire - 2002-09-23

DOT Dismisses ASTA's Orbitz Claims

The U.S. Department of Transportation has dismissed two separate requests from the American Society of Travel Agents for enforcement proceedings against Orbitz and numerous airlines over claims that the companies have attempted to undermine consumers' access to travel agencies. DOT determined that many of the issues raised by ASTA will be investigated in other proceedings.

ASTA charged that, in addition to eliminating base commissions to travel agencies for selling U.S.-originating airline tickets, the carriers took other steps to raise agency costs, reduce their efficiency and obstruct consumers' and agencies' access to one another. These steps include "refusing to make their low Internet fares available for sale by travel agencies through CRSs," and carrier-owned CRS' "rigorous enforcement" of productivity quotas while the carriers themselves are making it more difficult for agencies to achieve these booking levels.

In separate responses, the carriers stated, among other arguments, that ASTA did not provide evidence of harm to competition or consumers. DOT noted that in its CRS rulemaking proceeding, it is considering the display of codeshare services, passive segments, carriers' access to agencies' confidential business information and whether travel agencies should be entitled to renegotiate CRS contracts with vendors whose carrier owners substantially change business conditions affecting the agencies, for example by lowering commissions.



Reps. Blast TSA As Inefficient

The Transportation Security Administration is "severely deficient" in screening luggage for explosives at the nation's airports, according to Rep. James Oberstar (D-Minn.), ranking minority member on the Transportation and Infrastructure Committee, and Rep. Henry Waxman (D-Calif.), ranking minority member on the Government Reform Committee.

In letters dated Sept. 17 to Office of Homeland Security director Tom Ridge and U.S. Department of Transportation secretary Norman Mineta, the two lawmakers said that recent information provided by DOT's inspector general Ken Mead indicated that TSA is using none of the explosives detection system machines at maximum capacity levels. "Explosives detection machines are now sitting idle while millions of checked bags are loaded onto airplanes without being screened for explosives," they charged. The problem of underuse of the equipment "appears directly attributable to refusals by TSA to change its policy," the lawmakers said.

Currently, bags are chosen for screening by the Computer Assisted Passenger Prescreening System, which generates a list of passengers posing security concerns. The system also selects a set number of random passengers for screening. The IG "believes the primary cause of under-utilization is that airlines are not required by TSA to screen bags in addition to those chosen by the computer system," the lawmakers said. "After processing luggage on the prescreening list, the machines simply sit idle, rather than continuing to screen additional luggage. Although the IG has recommended that TSA increase the CAPPS random selection factor to boost EDS utilization rates, TSA has not adopted this recommendation," they said.

According to data from Mead, the CTX-5000 EDS machines currently deployed at airports across the country are certified by the Federal Aviation Administration to screen up to 250 bags per hour. These machines, operating at maximum capacity, could screen as many as 4,500 bags daily, given that many airports have 18-hour workdays. At a minimum, the IG said the machines should be able to screen 125 bags hourly for 10 hours a day, for a total of 1,250 bags daily. Yet, Mead found that only four of the machines of those in use in June 2002 screened more than 1,250 bags a day. "In other words," the lawmakers said, "based on the IG data, TSA is using less than 2.6 percent of its existing explosives detection machines at minimum capacity levels." The majority of EDS machines are screening fewer than 500 bags daily, they said.

At the same time that EDS equipment is "woefully underutilized" at airports nationwide, the administration is requesting that Congress delay the Dec. 31 deadline for TSA to ensure the screening of all checked luggage, Oberstar and Waxman said. "The contention that this long delay is necessary, however, is seriously weakened by the fact that so much existing equipment is standing idle."