Washington Wire - 2005-11-14

Airline Pension Bill Stalled in Congress
The House Ways and Means Committee on Nov. 9 approved pension-reform legislation and two senators late last week lifted their objections to a Senate version of the bill, clearing the way for consideration of legislation that may give financially struggling airlines more time for to dig their underfunded pension plans out of red ink. Sens. Mike DeWine (R-Ohio) and Barbara Mikulski (D-Md.) blocked the Senate bill due to a provision that requires companies with junk credit ratings that are also less than 93 percent funded to make up the difference over 12 months. The senators lifted their objection because the House bill does not include such a provision—a legislative disconnect that will have to be resolved in a conference, at which time DeWine hopes to eliminate the provision in the final bill as well, he told Bloomberg News. The House Ways and Means Committee approved the bill 23-17. The Senate bill would give carriers 14 years to make pension payments otherwise due more quickly. United Airlines parent UAL Corp. in May was permitted by a bankruptcy court judge to unload heavily underfunded employee pension plans on the federal Pension Benefit Guaranty Corp.

TSA Considers Relaxing Carry-on Restrictions
The Transportation Security Administration is considering further streamlining the airport screening process by relaxing rules on what can be brought onboard airplanes. Under review for a January 2006 removal from banned lists are such items as small knives and scissors.

European Airlines Seek Easier Screening
European airlines are pressuring U.S. security agencies to streamline screening procedures for U.S.-bound passengers, complaining about a lack of coordinated policies between the Transportation Security Administration and the Customs and Border Protection Bureau. The Association of European Airlines, in a letter this month to U.S. Department of Homeland Security Secretary Michael Chertoff, argued that a proposed requirement to submit passenger information 60 minutes before departure would bring "gridlock" to airport checkin areas and generate huge additional costs for airlines. The letter also was signed by the Air Transport Association, the trade association for U.S. carriers. U.S. authorities have tightened airport and airline security since the Sept. 11, 2001, hijackings of four airplanes. Part of that additional scrutiny includes cross-checking airline passenger names against terrorist watchlists. AEA said that security officials should do their best to ensure the process is as instantaneous and flexible as possible to not disrupt transatlantic travel, inconvenience passengers, and cost airlines any more money than necessary. AEA and ATA said "interactive" systems in such countries as Australia should be a model for the United States. "Adding just 10 seconds to the time it takes to handle each passenger on a full 360-seat aircraft would add one hour to the checkin process," said AEA secretary general Ulrich Schulte-Strathaus. The group asked U.S. security agencies to "streamline their requirements for transmission of passenger information in advance of travel."

Major Airport Runways Get Safety Facelift
The Federal Aviation Administration said it would equip runways at 15 major airports with new technology to make them safer. Seattle Tacoma International Airport in January will be the first to get the Airport Surface Detection Equipment, Model X, beginning in January. The system helps air traffic controllers better spot potential collisions by integrating data from such sources as radar and airplane transponders and creating a continuously updated map of airport operations.