Washington Wire - 1996-09-16

By Barbara Cook / September 15, 1996

<H1>Washington Wire</H1>Barbara Cook, Washington Correspondent

Another Tax Break?

The Republican leadership's decision in Congress to consider only appropriations bills before adjourning this month could torpedo plans to extend the aviation excise taxes beyond Dec. 31.

Complicating the Congressional schedule is a lobbying effort by seven major airlines that want to replace the old excise tax system with a user-fee formula. The carriers-American, Continental, Delta, Northwest, TWA, United and USAir-earlier this year proposed a formula that would be based on the number of airplane seats, the number of passengers and the per-passenger miles traveled. The carriers said their proposal would raise about $5 billion annually, about the same amount that would have been raised by the 10 percent domestic ticket tax and other excise taxes. The "Big Seven" proposal will receive a hearing before the House aviation subcommittee this month, but no other action is considered likely. The proposal's main effect, at this point, appears to be a blocking effort against extension of the excise taxes.

Airport organizations, meanwhile, are concerned that the legislative gridlock will prevent Federal Aviation Administration reauthorization legislation before Congress adjourns. If the legislation isn't passed by the beginning of the government's next fiscal year on Oct. 1, it means the FAA will be able to operate but won't be able to issue funding grants for airport security and safety projects.

Clinton Adopts Safety Proposals

President Clinton last week adopted sweeping recommendations proposed by Vice President Gore's select commission on aviation security and pledged to seek more than $1 billion from Congress "to expand our FBI antiterrorism forces and to put the most sophisticated bomb detection machines in America's airports."

The Gore commission requested a federal budget amendment for fiscal 1997 totaling $429.4 million to implement its list of recommendations in recognition that the federal government will now, for the first time, assume a major role in paying for aviation security.

As immediate steps, Clinton said he would direct the Federal Aviation Administration to promptly convene a meeting of security officials from the nation's 450 commercial service airports "so they can strengthen security as a team." He will mandate that all airport and airline employees with access to secure areas be given criminal background checks and FBI fingerprint checks. Also, the FAA will begin a full passenger bag match for domestic flights at selected airports. The positive bag match already is in effect for international flights; it prohibits flights from departing if a bag found on the plane cannot be matched with its owner. In addition, Clinton said the military will provide several dozen canine bomb-sniffing teams for key airports.

Air Disaster Info Deadline

The Department of Transportation has proposed requiring airlines involved in an aviation disaster on a flight between the United States and another country to provide the State Department with a comprehensive passenger manifest within one hour. That list would contain passport information plus a name and telephone number of an emergency contact. The rule was proposed by Vice President Gore's aviation safety and security commission and stems from complaints by families of victims on TWA's Flight 800 who criticized the delay in receiving information. DOT Secretary Federico Peña said his office also might extend the proposal to domestic flights. President Clinton, meanwhile, has designated the National Transportation Safety Board for a new role as federal coordinator for assistance services to families of air crash victims. The NTSB will work with other government departments and private organizations such as the Red Cross.

ValuJet's Return

ValuJet's return to the skies, tentatively approved by the Department of Transportation, has been greeted by a number of formal objections. Although many complaints were from individuals, the Association of Flight Attendants restated its call for the department to require ValuJet's top management to resign. Although no one is speculating publicly on how the objections will affect the carrier's plans to resume service, ValuJet president Lewis Jordan said flights will operate on a reduced scale within the next 30 days. DOT is considering the association's objection.

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