DHS Customs Proposal Threatens Int'l Travel Calamity

U.S. Dept. of Homeland Security Secretary Markwayne Mullin's proposal to pull Customs and Border Protection staffers from Newark Liberty International Airport and other gateways, at press time remained only a possibility. But the towering effect of such a move on airline operations, international travel capacity and demand has snapped the industry to attention, even if the threat never comes to fruition.

Mullin, who followed Kristi Noem as DHS secretary in March, this week said that the department was "drawing up plans" to stop processing the entry of international travelers in airports in what he called "sanctuary cities," those that have passed legislation restricting local cooperation with federal immigration authorities. Those cities include key international gateways like New York, Newark, Chicago, Los Angeles and San Francisco, among others.

In recent days, Mullin specifically has cited Newark, where protestors and U.S. Immigration and Customs Enforcements for several nights this week officials have clashed outside the Delaney Hall detention center.

"When we have situations like we have in New Jersey ... because local law enforcement won't help protect their streets ... we have to decide where we're going to prioritize our federal employees," Mullin said on Fox News Channel show Fox & Friends. "We're not going to halt the flights, but we won't process them because we won't have officers there—we'll pull Customs and Border Protection officers ... and put them in these facilities to help protect employees coming out of work."

Mullin hasn't disclosed much in the way of detail about how his plan would work, and it seems to have at least one detractor in President Donald Trump's cabinet: Transportation Secretary Sean Duffy, who last week during a House of Representatives budget hearing said that "we have people from around the world and around the country that need to be able to fly into all different kinds of places. We shouldn't shut down air travel in a state that doesn't agree with our politics."

Critically, Trump himself has yet to publicly weigh in on Mullin's proposal. A move so disruptive very likely would be carried out only with Trump's approval. 

And it would be disruptive on a scale likely unseen. There's plenty of overlap between international gateway airports and sanctuary cities, and neither airports in other cities nor their customs-processing facilities themselves likely have the capacity to simply accept diverted international traffic. Far more likely, if Mullin's plan is implemented, would be a spate of cancellations of inbound international flights.

The potential for industry disruption drew condemnation of Mullin's plan from some industry groups. Addressing the Newark threats, the U.S. Travel Association in a Friday statement said the DHS proposal would cause "immediate and lasting harm," particularly given the looming FIFA World Cup, the final match for which is scheduled in nearby East Rutherford, N.J.

"Pulling CBP officers from airports would cause a severe, self-inflicted economic wound. American citizens trying to get home, international visitors, and the success of a once-in-a-generation global event cannot be used as leverage—as a threat, a punishment or a catalyst for negotiation—in disputes over immigration," according to U.S. Travel.

The Global Business Travel Association in a Friday statement said it had "serious concerns about the potential implications for international travel into the U.S. and the resulting impact for the U.S. economy overall."

"Policies that introduce friction at the border could discourage travel to the U.S. for meetings, events and investment opportunities—at a time when global competition for international travelers and business activity is intensifying," according to GBTA. "The U.S. cannot afford unintended consequences that limit its accessibility or competitiveness."

American Society of Travel Advisors president Zane Kerby said ASTA was watching the developments closely and, should operational changes come to pass, would "advocate for policies that keep travel moving safely, efficiently and reliably." 

U.S. airline lobbying group Airlines for America in a statement said that "reducing CBP staffing at major airports would have a devastating effect on the airline and tourism industries, causing a significant operational disruption to carriers, travelers and the flow of international cargo."

Visualizing the Unthinkable

Still, many suppliers thus far have held their tongues on Mullin's proposal. The A4A statement represents the entirety of airline commentary on the issue thus far, and no travel management company queried by BTN would address the potential effects on the record. Given that Mullin's proposal remains conjectural and so far lacks Trump's explicit endorsement, perhaps they're hoping this will blow over without taking shape, blustery but fleeting.

But that's a chance corporate travel buyers may not be willing to take. That Mullin's proposal has no real precedent and would be so unsettling doesn't mean it won't happen, and buyers and travelers alike likely won't want to be caught flat-footed.

Buyers "need to be prepared for this or something like it," according to McIndoe Risk Advisory president Bruce McIndoe, who called the proposal "completely outrageous" and said it would cause "chaos and mayhem."

"I would guess that travel managers and travelers departing or arriving from an international location would need to plan for a one-stop hop to a 'red' city to travel onward to their international destination," according to McIndoe. "This would require the passenger to depart, collect all luggage, check their luggage back and make their way through security screening."

Grant Caplan, president of corporate travel and meetings procurement consulting firm Procurigence, suggested buyers with high exposure to potentially affected airports consider exploring more flexible airfares, while those with lower exposure may be able to wait and see if last-minute, albeit costlier, accommodation is required.

"When potential interruptions are signaled, we counsel our travel manager clients to put in temporary policies and software support," according to Caplan. That support "reserves more flexible tickets and allows changes to less-flexible tickets, while taking advantage of airline waivers, similar to when airlines know of weather or political interruptions in advance. Agents are counseled in these provisions and empowered to use them, including checking drive time to a different airport that may not be expecting similar interruptions."

Areka Consulting SVP of North America Charles Bacharach recommended buyers treat the potential disruption as they would other potential risks, by identifying would-be affected travelers, keeping senior leaders and corporate security in the loop, tapping TMC resources and adjusting policies as needed, among other moves.

"Remind travelers that managing such risks and the potential impact of such a scenario is why they should book their travel with their approved TMC," according to Bacharach.