WashingtonWire - 2002-01-21

Stimulus Bill May Fall By Wayside

Congress returns to work on Jan. 23 with one big question mark—whether the divided body seriously will consider an economic stimulus package. Although the airlines received a federal bailout after the Sept. 11 attacks, the hospitality side of the travel industry has been unsuccessful in its bid for some type of relief. The best hope for further economic relief for the industry is considered to be as part of an overall economic stimulus package. Although Congress and the White House have indicated they want to consider the notion of an economic stimulus package this month, signs that the economy may be backing away from the recession may end that effort. Opponents of legislation said the lag time between passage of a stimulus package and when it would take effect, coupled with projections that the economy is improving on its own, show that the need for legislation has passed.



GAO Asking DOT To Further Evaluate Air Delays

Even as heightened screening requirements complicate the problem, the General Accounting Office is recommending that the U.S. Department of Transportation launch a more extensive evaluation of initiatives to reduce flight delays, including a review of intermodal solutions and a dialogue with the aviation community to develop a comprehensive blueprint for meeting the long-term needs of the nation's airspace system. Although the aftermath of Sept. 11 has reduced airline capacity and the system is having less difficulty absorbing the volume of flights, it is likely that a more robust economy and declining public apprehension about flying will lead to renewed demands on the system, GAO said in a report to the Senate Commerce Committee. At that point, concerns about delays once again may command national attention.

Noting that the Federal Aviation Administration has made "a good start" in implementing its Operational Evolution Plan to address flight delays, GAO said long-term growth in the system requires "attention beyond the initiatives currently underway." One reason, GAO said, is that a number of the most delay-prone airports have limited ability to increase their capacity, especially in the form of adding new runways. Persistent delays at these key airports will continue to act as choke points that slow air traffic moving through the system.There are three ways to increase system capacity and reduce delays, GAO said. The first measure is to add capacity by building entirely new airports or by using other nearby airports that have available capacity. The second approach involves ways to manage and distribute demand within the system's existing capacity, including limiting the number of takeoffs and landings during peak periods or restricting the use of general aviation aircraft at especially crowded or sensitive airports. The third involves developing other modes of intercity travel, such as high-speed rail where metro areas are relatively close together.



New Amtrak plan is to try privatizing

A federal oversight panel for Amtrak has issued a non-binding recommendation that the rail line be split apart and restructured to inject competition on its routes. The Amtrak Reform Council, established in 1997 to issue a restructuring plan if members determined Amtrak couldn't achieve operating self-sufficiency by Dec. 2, 2002, determined in November that Amtrak wouldn't achieve this goal. The council's vote also was supposed to require Amtrak to draft a restructuring plan of its own. However, Congress approved language forbidding Amtrak to use any funds to draw up a restructuring plan. Currently, the federal government provides more than $500 million annually in subsidies for the rail line.

The council's plan has three elements: a new entity to control the Northeast corridor infrastructure, a new train operating company that would operate all trains throughout the country now provided by Amtrak and a government oversight agency, the National Railroad Passenger Corp., to administer the new entities. During a two- to five-year transition period, the oversight agency could allow private companies to bid to operate some of the train services. If no offers are forthcoming, the federal operating company would continue to run the trains. If bids do come forth, O'Sullivan said, privatization of train routes would begin slowly, allowing the oversight agency time "to see how it works." Congress must make a final decision on the fate of Amtrak after reviewing the council's plan, which will be submitted on Feb. 7.