US Congress-Obama stalemate means travel trouble

Posted 26/07/2011

The US Congress’s stalemate with President Obama over the debt ceiling and recent inactions are starting to have an impact on travel, both positive and negative, with two major developments:

As Congress and the White House try to find a compromise to avert a debt default, the issue of airlines paying more for security has repeatedly bobbed to the surface.

“While those proposals would cover only a fraction of any deficit remedy, they represent flash points in relations between industry and government over aviation policy,” points out Reuters.

Previously, only business plane manufacturers and aircraft association members were fighting the security issue. But now the largest commercial airlines have started aggressively lobbying congress.

At least one proposal would double the security fee paid by airline passengers to raise US$15 billion over the next decade.  The current maximum fee imposed on commercial flights is USD$10 per round-trip ticket.

Previous proposals by President Barack Obama and former President George W Bush to increase air security fees paid by passengers were not embraced by lawmakers, who would have to approve such a change.

Those fees, which have never gone up, were imposed at the creation of government-run airport passenger and bag screening following the 9-11 attacks.

They currently cover less than 40 percent, or roughly $1.8 billion, of Homeland Security Department costs. General appropriations pay for the remaining amount.

The second development of Congress not funding the FAA raised prospects not so pleasing for others.  Nearly 4,000 FAA employees are facing furloughs. In addition, a US$2.5 billion program for grants for airport construction projects will shut down. Thousands of jobs there will be jeopardized.

The immediate impact is that passengers will not have to pay the 7.5 percent federal transportation fee, though the individual airlines could raise prices to cover the amount.

Transportation Secretary Ray LaHood said in a release that the failure by Congress to pass the measure by last week’s deadline disappointed him.

"Because of their inaction, states and airports won't be able to work on their construction projects, and too many people will have to go without a paycheck," he said. "This is no way to run the best aviation system in the world."

Air traffic controllers will stay on duty, but the furloughs could affect engineers, scientists, community planners, computer specialists and others.

The funding measure hit a roadblock because of House Republicans' efforts to make it more difficult for airline and rail workers to unionize, according to CNN. There was also a move to cut subsidies for air service to rural airports.

By David Wilkening

 

Originally published 26 Jul 2011 at: http://rss.feedsportal.com/c/398/f/5923/s/16e9ddf9/l/0L0Stravelmole0N0Cstories0C11486340Bphp0Dmpnlog0F1/story01.htm