WashingtonWire - 2004-10-18

Law Making Airlines Honor Tickets Imperiled

U.S. lawmakers, faced with two major airlines already in bankruptcy and others on the cusp of financial failure, are racing to renew a law due to expire Nov. 19 that requires profitable airlines to honor tickets issued by competitors that go under. The current law caps the fee for a ticket change at $25 each way.

The Senate on Oct. 6 adopted an amendment to legislation reorganizing the U.S. intelligence-gathering structure that renews the rule, which requires airlines pick up the slack when they fly the same routes as competitors that fail. The House of Representatives on Oct. 8 approved its version of the legislation, which does not contain the extension. The two bills must be reconciled, and final negotiations between the two chambers may be protracted because of disagreements about how much authority to give the new director of central intelligence and other issues, making it unlikely the measure will become law until after the Nov. 2 presidential election. "When an airline goes belly up, thousands of consumers could lose their tickets," said Sen. Ron Wyden (D-Ore.), who co-authored the amendment.

The law, which is opposed by some financially healthier airlines because of the fee limit, helps bankrupt airlines keep customers because travelers can be confident they will not hold worthless tickets if the carrier goes under, said Kevin Mitchell, chairman of the Business Travel Coalition. "Passengers purchasing tickets with popular bank debit cards or cash should be provided with protection against airline failures when, as taxpayers, they recently provided airlines with billions of dollars in grants and loan guarantees, security tax waivers and subsidies for insurance coverage," Mitchell said. "Airline failures should not be financed on passengers' backs as they are potentially left holding millions of dollars in worthless tickets."

The BTC and Association of Retail Travel Agents on Oct. 4 issued a release urging airlines to voluntarily honor the spirit of the law even if it lapses temporarily. The airline industry as a whole has not taken a stand on the issue, according to the Air Transport Association.

Amendment Funds Blast-Proof Cargo Holds

The Senate also amended the intelligence bill, which creates a new director of central intelligence to coordinate the country's 15 intelligence agencies, to give Transportation Security Administration officials authority to check passenger manifests for suspected terrorists. Provisions in the bill also would require airlines, with federal funding, to equip cargo holds with blast-proof technology and direct the U.S. Department of Homeland Security to develop a strategy for transportation security. "This is a great opportunity for all of us to improve all of our security, whether it be aviation, port, rail, bus or other areas of vulnerability," said Sen. John McCain (R-Ariz.), sponsor of the amendments. Legislation was drafted in the House and Senate to implement most of the recommendations of the commission that investigated the Sept. 11, 2001, attacks.

Proposal Would Train Heat-Packing Pilots

Legislation introduced in the waning days of the 108th Congress by the top Republican and Democrat on the House transportation subcommittee on aviation would authorize some pilots to wear pistols onboard airplanes instead of requiring the gun be placed in a lockbox. The proposal by chairman John Mica (R-Fla.) and Peter DeFazio (D-Ore.) also would require the U.S. Department of Homeland Security to make it easier for pilots interested in the Federal Flight Deck Officer program to reach the training facility in Artesia, N.M. Pilots who receive the training also would be issued badges by DHS under the legislation.