I’m in Houston for the annual Airport Revenue News Conference and Exhibition . They have a good crowd this year, and the overall mood here, I think it is fair to say, is one of cautious optimism.
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The Directors Panel at ARN
In the first few steps of the federal stimulus plan to create safer airports, Chicago O’Hare International Airport received its first full-body scanner this morning.
Two new one-stop international routes were recently announced that are available from Charlottesville-Albemarle Airport (CHO).United Airlines will begin its first-ever service to Africa from Washington Dulles (IAD)to Kotoka International Airport (ACC)in June. This
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New One-Stop International Travel Options from Charlottesville Al…
The U.S. Senate has brought the FAA reauthorization bill to the floor. We still have a ways to go before the bill is voted on by the full Senate, and before a conference with the House yields final legislation that can be signed into law by President Obama. But I feel like we are as close as we’ve been since this process started more than three years and eight extensions ago. FAA Administrator Randy Babbitt made an excellent argument in his speech to FAA’s annual Forecast Conference on the need to invest in aviation infrastructure, and John Infanger , one of the best aviation journalists, wrote an excellent blog on the same subject. For the life of me, I just can’t understand those who say the correct response to our air transportation challenges is to reduce our investment in infrastructure. Just doesn’t make sense. The purpose of air transportation is to move people and products to destinations and markets. When I worked in state government helping the governor sell Virginia as a place to do business, that was always a big selling point – and businesses responded (400,000 jobs were created in Virginia during those four years). It has been a fact of economic life since the earliest days of human existence: when you can transport goods and people to destinations and markets, you promote economic activity and job creation. Economic activity and job creation place even more pressure on the transportation system. When you improve your infrastructure, more jobs are created, and it goes on and on throughout the entirety of human existence. Those who argue otherwise might as well argue against the laws of physics. This bill will lead to the creation of more than 360,000 jobs over its life (assuming the House provision on the Passenger Facility Charge is accepted in conference); and the preservation of tens of thousands more. By improving our infrastructure and by improving air traffic control, it will make our economy more efficient and help the environment. And, because the airport grant program is already paid for and the PFC user fee is a local fee, spent and collected locally, all this will be accomplished without increasing the federal deficit. We can leave our children and grandchildren an air transportation system worthy of the 21st century that will promote job creation and opportunity for them, and leave them a cleaner environment. And, we can do this without adding to their debt burden. Man, I’d like to be a politician delivering THAT speech to my constituents after having voted for this bill.
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FAA Bill Nears Vote in Senate
European antitrust regulators took a step toward approving an expanded alliance between British Airways, American Airlines and Iberia after the airlines offered to give up landing and takeoff slots at airports serving London and New York.
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Three Airlines Near Deal for an Expanded Alliance (at The New Yor…
American Airlines, British Airways, and Iberia may be giving up departure and landing time slots at London’s Heathrow and Gatwick Airports, as well as New York’s JFK International Airport soon. The three airlines, who have worked closely for years in coordinating routes and sales, have been challenged by the European Union for coming close to anti-trust territory.
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American, British Airways, and Iberia to give up slots in London and New York
The FAA released their traffic forecast this week. They say that traffic will begin to turn the corner this year and then trend upward at about 2.5 percent a year afterwards. I think they are right; I hope they are right – most importantly, we need to plan as if they are right. I remember a time when FAA forecasts were routinely exceeded by actual performance. In the post-9/11 world; in the post-Great Recession world, all bets are off – if this was Las Vegas they wouldn’t even set an “over-under.” It is worth remembering, though, what things were like right before 9/11; and what things were like right before the “Great Recession.” Before 9/11, we were approaching three-quarters of a billion passengers. The media was cluttered with stories about delays and congestion – problems that had been festering all decade and had finally broken out into a full blown crisis. There were lengthy tarmac delays and passengers who were upset. This was about the time airlines finally discovered the importance of the air traffic control issue (sorry, couldn’t resist). There were people on Capitol Hill calling for a greater effort; indeed, the Passenger Facility Charge (PFC) user fee limit was increased in the FAA reauthorization bill, as was the Airport Improvement Program (AIP). It wasn’t going to be adequate to meet the demand, but it was a good start. The 9/11 attacks changed a lot of the calculations and the timing, but did not change the basic fact that this nation does not have the aviation infrastructure it needs. When traffic rebounded back toward the three-quarters of a billion mark, we saw many of the same problems we saw in 1999-2000: delays, congestion and passenger service issues. ACI-NA launched the industry’s push for an increase in the PFC user fee limit to account for construction cost that had eroded half the user fee’s value since 2000; as well as for legislation to change the tax treatment of airport bonds. The financial collapse and the recession that followed have reduced traffic, but have not changed the basic fact: our aviation infrastructure is not adequate to meet the demands our economy places upon it. We were able to get a provision into the stimulus bill providing for a two year holiday on the tax treatment of bonds, but we want to make it permanent. More importantly, we are working hard to get a new FAA reauthorization bill passed. We estimate (and this is a conservative estimate) that the AIP provisions that are in both the House and Senate versions of this legislation will create at least 80,000 jobs in the first year; and that the PFC provision in the House bill will create at least 40,000 in year one. This is on top of the tens of thousands already created by the changes in tax treatment of airport bonds (1,600 in Las Vegas and 1,200 in Sacramento alone, for example). And you know what? This all happens WITHOUT INCREASING THE FEDERAL DEFICIT. (AIP is all paid for by revenues already in place, and the PFC is a local fee). I can’t think of another single item on Congress’s “to-do” list that meets this test. The creation of hundreds of thousands of jobs, without increasing the deficit, over the life of this bill – indeed the taxes paid by the workers in those jobs that are created will make this a net reduction of the deficit. Read that sentence again. Wow. And it is even better if we can couple that with a permanent change in tax laws on the treatment of airport bonds. Jobs are “Job 1” in Washington right now. The federal debt and deficit are next in line. There is NOTHING Congress can do right now that more effectively addresses both issues as impressively as does passing FAA reauthorization. We met with Senator Harry Reid last week and it looks as if the Senate will consider this legislation soon. I am confident a good deal can be reached between House and Senate negotiators and we can get a bill signed into law. If someone can show me any bill that can creates hundreds of thousands of jobs, does not increase the deficit, and even reduces the deficit and the debt; I’d like them to do so. Simply put, there aren’t any. This is the best shot there is. Congress, and the administration, ought to take it, right now. Update: Please take a moment to read Airport Business’ John Infanger’s latest blog : “Slowing Down is a Mistake.” He concludes: “FAA does a good job each year of providing a barometer of where the industry is today and where it’s headed. The fact that many in Congress have come to the realization that ongoing NextGen investment is critical is encouraging
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The FAA Bill — A Jobs and Deficit-Reduction Bill
Photo: The Guardian In an attempt to attract visitors to travel to the United States , President Barack Obama has signed a new Travel Promotion Act into law that requires a $10 fee to enter the country. The income from this new fee will go toward a push for marketing and outreach to encourage more visitors. President Obama signed the bill on Thursday as part of a $100 million private sector fundraising campaign
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President Obama signs Travel Promotion Act
Nine more airports across the country will include the new full-body scanners , according to the Transportation Security Administration. Those airports include the following cities: Fort Lauderdale, San Jose, Columbus, Ohio, San Diego, Charlotte, Cincinnati, Los Angeles, Oakland, Kansas City.
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More full-body scanners are implemented in the U.S.
Hi Marie, Carry-on baggage restrictions can depend on who you’re flying with and where you’re flying from, so the best thing you can do is check with your airline or visit the airport’s information site. However, most carriers allow you one standard-sized carry-on bag measuring no bigger than 56cm x 45cm x 25cm (22ins x 18ins x 10ins), including the handle, pockets and wheels, PLUS a small laptop bag or handbag.
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By: Lucy
This month’s snowstorms weren’t only a hassle to the folks trying to travel to and from the Northeast – it also hit airlines hard as well. Even though canceling flights is a cheaper way to get through a snowstorm than to pay the extensive fines for impending tarmac delays, airlines still absorbed most of the cost that came with the inclement weather.
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Airlines feel the cost of snowstorms
Received an interesting response to my post on Richard Anderson’s poor attempt at propaganda published in the Delta in-flight magazine, Sky . Delta collected more revenue from its luggage fee in the 3rd quarter than any other airline. Steve Denes points out that not only is Mr. Anderson mired in the past but that he conveniently left out the billions of dollars airlines make in fees for checked bags, changing reservations, seat selection, food and beverage, blankets and pillows and so on. Indeed, Anderson’s fictional person traveling on a $300 ticket (I’ve personally made four domestic reservations since Jan.
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Round Two: What Delta is Not Telling You?
Once again this month, a snowstorm in the Northeast has caused widespread flight cancellations in the New York area. Hundreds of flights were cancelled yesterday, but major New York airports are fully prepared for the storm and do not plan on closing
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Airlines cancel flights for Northeast snowstorm
At the Reuters’ 2010 Travel and Leisure Summit, two U.S. airlines made it clear that they are open to merging with other carriers from the U.S
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Reuters’ 2010 Travel and Leisure Summit brings talks of U.S. mergers
After months of considering how to spend the $1 billion set aside by the Obama Administration to add extra security in airports, a fleet of 150 full-body scanners are finally being installed. Approximately $25 million have gone toward the effort, and next week, the first will be installed in Boston Logan International Airport . Three machines will be installed in the Massachusetts airport, and in the next two weeks, there will be another implemented in Chicago O’Hare International . The rest of the devices should be completely set up by June, and are expected to improve airport security by showing objects on the body that other scanners haven’t been able to see. Some privacy advocates are against the machines, stating that they are invasive and unnecessary, but the United States and select countries in Europe have agreed to go through with the fleet of new security methods for the sake of safety.
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Full-body scanners come to Boston
Much like the Zagat survey results that were posted in November, that highlighted small airlines in customer satisfaction, J.D. Power and Associates have polled 12,000 travelers for the best airports.
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J.D. Power ranks top U.S. airports
Excellent Hotel – Much better than I thought. A view from the Executive Lounge at Hilton Frankfurt Staying at Hilton Frankfurt for two nights with my brother who lives in Munich. Frankfurt was one stop at my European tour on november 2009 and I came here from London.
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Hilton Frankfurt, Frankfurt Am Main, Germany
There has been a lot of press coverage this week of the fact that the stimulus package became law a year ago. Anniversaries are always an occasion for taking stock, and this is no exception. This being Washington, most of the stock taking has depended on politics, ideology and other such factors. But there is one element of the stimulus about which there need be no debate; because the facts are the facts. As the late Senator Daniel Patrick Moynihan once said, “You are entitled to your own opinion; you are not entitled to your own facts.” John Adams once said “facts are stubborn things” meaning you can’t change them to suit an opinion. And that element of the stimulus, and the facts that accompany it, concern the investments made in airport infrastructure. There were two essential elements to this. First was the $1.1 billion dollars in direct investment, using the Airport Improvement Program. The FAA did a fabulous job getting this money out the door to fund more than 300 projects . These projects not only put thousands to work, they also enhanced the safety and security of all our passengers. Money was spent on runways, taxiways and other essential projects. Kate Lang and her team at the FAA Airports Office are to be commended for the way they carried this out, and its impact can’t be denied. The second element was the two-year waiver of the Alternative Minimum Tax (AMT) levy on private purpose bonds. One-third of the value of the stimulus bill consists of its tax provisions, and I can’t believe any of them had as big an impact as this. The majority of airport bonds are subject to AMT; even though this defies common sense (can it seriously be argued that airport projects are not public purpose projects?). It has been a priority of our organization to change this; four years of investment in research and message paid off when the stimulus bill was being considered and a two year waiver was included (some old AMT bonds can also be re-financed under this waiver). The impact was extraordinary. Before this provision was signed into law, the market for airport bonds was all but completely frozen. Once this provision became law, the thaw was almost immediate and now more than $8 billion in airport bonds have been sold, financing projects that are creating or saving tens of thousand of jobs. Just at Las Vegas and Sacramento – two airports – a total of 2,800 jobs were saved on projects that would have been shut down without this provision. In addition to thawing the bond market, this provision also has saved airports $700 million (AMT bonds are more costly to airports than non-AMT bonds), money that can be put back into job creating, passenger-serving, projects. Indeed, this provision has been so successful we are arguing strenuously for it to be made permanent. So, the facts are plain and simple. The stimulus provisions related to airports generated jobs by the tens of thousands, perhaps even more than that. They led to projects that will benefit passengers and enhance safety. These are the facts. And, you know what Daniel Patrick Moynihan and John Adams said about facts.
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Fact: Airports Used Stimulus Plan to Create Jobs
It’s been two weeks since I last wrote; we spent most of that time trying to get out of our cul de sac in the D.C. suburbs. I was able to get out of town just ahead of the most recent foot of snow to travel to Houston to attend our CEO Forum and board meeting. The CEO Forum is open to all member airport directors and several dozen of them were there. It is a real honor to work with a group that is at the same time among the best business leaders I have ever been around and the best public servants as well (in the U.S., airports are owned mostly by local and state governments, that is not true in Canada). As I stood up there and welcomed the group, I could turn in any direction and see an airport director who has worked his or her fingers to the bone to bring new air service to their community
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Meet Every Traveler’s Hero: Airport Directors
This season on ABC’s hit show “The Bachelor,” the women are traveling in style. Titan has paired with ABC to provide the love interests with durable, hardside luggage that is colorful and fashionable! The women each carry a 4-wheel trolley from the X2 Flash line and pair it with a matching beauty case. This season’s Bachelor, Jake Pavelka, is a commercial airline pilot. He too is sporting Titan luggage from the X2 Special Edition Carbon line. In addition to the “Bachelor,” Titan has been featured in various magazines and websites such as Oprah’s “O” magazine, Forbes Traveler, Allure, Italian Vogue, National Geographic Traveler, and many more! The Titan X2 4-Wheel Flash has a four wheel system that makes travel a joy, while the daring, high gloss colors allow freedom of expression for travelers of all ages. The bold design and sophisticated carbon finish make the Titan X2 4-wheel Special Edition Carbon a perfect choice for business or leisure travel. Wheels rotate 360 degrees, making navigation of crowded airports and small aisles an easy task
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Titan Luggage Featured on “The Bachelor”