House Committee Rejects Bush Airline Ticket Tax HikeThe House appropriations committee last week rejected President George W. Bush's proposal to more than double airline ticket taxes to pay for more security at airports, a victory for the struggling industry that said competitive pressures against raising fares would force it to absorb most of the $1.7 billion increase. Lawmakers voted to keep the tax at current levels—$2.50 per leg, with a maximum of $5 per trip—as part of a larger bill to fund the Department of Homeland Security in the fiscal year that begins Oct. 1. The measure next goes to the full House for consideration, then to the Senate. "Our allocation does not completely plug the $1.7 billion hole the President created by proposing an increase in the passenger security fee—a fee we simply cannot and will not agree to place on American travelers," said Rep. Harold Rogers (R-Ky.), the chairman of the homeland security subcommittee.
Report: TSA To Postpone Secure FlightThe Transportation Security Administration is postponing this fall's proposed launch of the government's latest passenger-prescreening system, Secure Flight, to next year, GovExec.com reported last week. The publication, citing a House appropriations committee report on the Department of Homeland Security's 2006 budget, said TSA's current schedule to have all domestic carriers using Secure Flight by October "appears overly optimistic." GovExec.com reported that TSA in a recent briefing said two unidentified airlines would begin testing the system in August, with other airlines to follow late this year. Members of the appropriations committee said the schedule presumes "all goes well with the first two airlines and no major problems are identified that would set back this program," the publication reported. At press time, TSA had yet to respond to calls regarding the program's setbacks.
Northeast Corporate Shuttle Readying For LaunchExecutive shuttle company Equitair plans to launch service Sept. 12 between Bedford, Mass., and both Morristown, N.J., and White Plains, N.Y. The company plans to offer fixed fares and contract directly with large corporations and travel management companies. Pricing is not yet publicly available but Equitair said it would be based around operating costs and compete against existing commercial service. Flights will operate with Fairchild Dornier 328J aircraft in a 30-seat configuration. Equitair cited familiar conveniences of private transport, including ground transportation connections, dedicated executive terminals and expedited security clearance. The Rochelle Park, N.J.-based company previously attempted to initiate all-business class transatlantic operations
(BTN, June 7, 1999).Amex Corporate Card Group Loses Its HeadAmerican Express this month appointed former commercial card head Steve Squeri to the position of executive vice president and chief information officer of American Express Co., leaving a yet-to-be-filled spot in the card group. An Amex spokesperson told Business Travel News "the leadership team on commercial card is well-established and there's no rush to fill the position." The commercial card team for the largest provider of corporate T&E cards will be reporting directly to group president Ed Gilligan. Squeri is stepping into the CIO role formerly held by Glen Salow, who will become executive vice president of technologies and operations for the American Express Financial Advisors division, which Amex plans to spin off this year.
U.K.'s ITM Members Urge Merger Into ACTEEighty-one percent of buyer members of the United Kingdom and Ireland's Institute of Travel Management voted in favor of a merger with the Association of Corporate Travel Executives, as did 98 percent of supplier members. The ITM now will become ACTE UK & Ireland. ITM marketing manager Mark Harris said the merger process would take "a matter of weeks rather than months." ACTE UK & Ireland will have 1,000 members, making it the association's second-largest region after the United States The ITM is poised to announce the appointment of an executive director within the next week. The incumbent, Loraine Holdcroft, has left to assume a similar position with the U.K.'s Hotel Booking Agents Association.
Air Canada Debuts Small Business Web SiteAir Canada this month introduced a travel management portal for small and midmarket clients. The suite of products includes access to Air Canada Web fares, tools for monitoring travel spend and traveler profile management. The portal targets lightly managed travel programs and, according to the airline, soon will be complemented by co-branded agency sites.