John Sammon, assistant administrator for the Transportation Security Administration (TSA) for the U.S. Department of Homeland Security, spoke today about the TSA’s actions toward fulfilling the air cargo security provisions of the Implementing Recommendations of the 9/11 Commission Act of 2007. The act mandates that 100 percent of all air cargo aboard passenger aircraft be screened by the year 2010.

The major challenges faced by the TSA is that there is not enough capacity at all the airports to do all the screening that needs to be done, Sammon said. The lack of capacity makes it impractical to attempt to break down, screen and reassemble large consolidated loads on airport property with any timelines or efficiency and it also poses a security threat, he said.

Cathleen Berrick, director of the Homeland Security and Justice Issues at the U.S. Government Accountability Office, said that TSA faces five major challenges: TSA has noted some technologies that will be allowed but has not finished that assessment, TSA has not finished it’s air cargo vulnerability assessments, TSA may face resource challenges, TSA is working with outbound and domestic air cargo but more work is needed on inbound international flights, and finally TSA needs to set standards that all air cargo companies are willing to work with.

Kevin Mitchell of the Business Travel Coalition says Congress can help small businesses and airlines by cracking down on oil speculation, strengthening the US dollar, pressuring OPEC to increase oil supplies, and suspending taxes and fees on US airlines until March 2009. (0:56)

 

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Rep. Steve Chabot (R-Ohio) says airlines are being forced to eliminate destinations, increase fares, and downsize due to oil costs that have increased $45 billion dollars in eight years. (0:53)

 

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Rep. Nydia Velazquez (D-N.Y.) says a lack of runway capacity has forced small airlines into bankruptcy, leaving passengers with fewer choices and less access for small firms to diverse markets. (0:34)

 

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The airline industry’s impact on entrepreneurs and the US economy was discussed by the House Committee on Small Business. Rep. Nydia Velazquez (D-N.Y.) said that the United States is in an air travel crisis and that small business owners across the country will feel the impact of struggling airlines.

Paul Ruden, vice president of legal affairs for the American Society of Travel Agents, said demand for airspace and runways exceeds supply in the United States. Ruden stated that excess demand for seats, congestion in airports, the introduction of fees for services once included in the ticket price, and the increased cost of oil leave consumers alienated. Rep. Steve Chabot (R-Ohio) said airline fuel costs have increased from $16 billion in 2000 to an estimated $61 billion in 2008. Chabot suggested increasing domestic oil production, citing a FOX News survey which says 76 percent of Americans support drilling offshore and in Alaska.

Roger Dew, president and CEO of the Travel Industry Association, said Americans’ frustrations with airline travel predates the soaring price of oil and that oil costs will only amplify frustrations with security lines and an unreliable infrastructure. Terry Segerberg, a small business owner in Cincinnati, Ohio, said airline and other transportation costs are forcing her and other business owners to spend thousands monthly on travel, a reality that causes companies to struggle to remain competitive. Kevin Mitchell of the Business Travel Coalition said Congress can help entrepreneurs by cracking down on oil speculation, strengthening the dollar, pressuring OPEC to increase oil supply, and suspending federal taxes and fees on airlines until March 2009.

Senator Klobuchar (D-MN) voices her disapproval with the proposed Delta and Northwest Airlines merger at Senate Subcommittee on Antitrust hearing. (0:59)

 

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The Senate Judiciary Committee Subcommittee on Antitrust, Competition Policy and Consumer rights today held a hearing looking at the proposed merger between Delta and Northwest Airlines. Chaired by Senator Herb Kohl (D-WI), Committee members debated whether the merger would be detrimental to consumers and to the economy by eliminating market competition in the airline industry, and limiting airline choices for prospective flyers.

The panel of witnesses at the hearing included President and CEO of Northwest Airlines Douglas Steenland and CEO of Delta Airlines Richard Anderson. Anderson and Steenland argued that their merger would not eliminate choices for consumers because their companies’ flight paths complement one another. Also, the CEO’s argued that job loss as a result of the merger would be small. They stood firm in their stance that the market, their respective company’s incomes, and the airline industry as a whole, would be better off as a result of the merger. (more…)

Briefer: Dana Perino

President’s Schedule

President Bush had his normal briefings at 8 am this morning. At 9.10 am he attended a meeting with his Cabinet. At 1.15 pm, the President will present the Commander-in-Chief’s Trophy to the United States Naval Academy Football team. This evening at 6pm, President Bush will make remarks in honor of Thomas Jefferson’s 265th Birthday.

White House Press Secretary Dana Perino will brief the press at 12.30 pm today. (more…)

The 2008 Airline Quality Ratings study announced today shows a sixty percent increase in customer complaints, according to co-researcher Dean Headley. He says most of the complaints were about flight problems, such as “delayed, canceled, unscheduled or rescheduled flights.” He says baggage handling was the “second biggest issue” in customer complaints. (0:33)

 

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Dean Headley, co-researcher on the Airline Quality Ratings study, says he expects “more of the same” for next year. The Airline Quality Ratings released today for 2008 show the lowest score ever, and without any “big fixes on the way” Headley says he doesn’t see ratings getting any better. He hopes instead that scores stay where they are. (0:28)

 

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