
2004 Government Affairs Overall
Activities
Grassroots Involvement Key to Political Action
ASTA members are reminded to make their voice heard and sign up for Now
One Voice-ASTA (NOVA) today. Since NOVA's creation in September, more
than 50 people have become involved with the program. This grassroots
involvement is the key element to advancing travel agent issues at both
the federal and state level. When Society members participate in the legislative
process, they have the power to influence elected officials on making
the right decisions with regard to industry issues. If you are interested
in volunteering to testify before Congress or at the state level, play
a part in federal and state industry stakeholder meetings or willing to
contact your elected officials when called upon, click
here to join NOVA today.
ASTA Applauds Congress for Re-enacting Section 145
Passengers worried about flying on bankrupt airlines can breathe a sigh
of relief, at least through Nov. 19, 2005, thanks to the passage of the
Intelligence Reform and Terrorism Prevention Act of 2004 by the U.S. House
and Senate yesterday. That legislation contains the provision extending
to consumers the “right to alternate carriage” in the event
a bankrupt airline ceases service through Nov. 19, 2005.
On December 9, the Intelligence Reform bill was passed
to reenact Section 145 of the 2001 Aviation and Transportation Security
Act. Section 145 provides that airline passengers holding tickets from
a bankrupt carrier for a particular route are entitled to transportation
on a space-available basis on any airline serving that route within 60
days after the bankrupt airline suspends operations. Additionally, the
maximum fee that an airline can charge for providing standby transportation
would not exceed $25 each way. These protections will now expire on Nov.
19, 2005.
One Last Push for S. 2845 and S. 2603
To ensure that ASTA's pending legislative initiatives pass this year during
the brief congressional session in December, Society
members must get actively involved by contacting their elected officials
to seek floor action for the National Intelligence Reform Act (S. 2845)
and the Junk Fax Prevention Act (S. 2603). Travel agents can make a difference
in getting these bills enacted; all it takes is a phone call to your two
U.S. Senators and your U.S. Representative.
ASTA continues to support language in the National Intelligence Reform
Act (S. 2845) that extends Sec. 145 of the 2001 Aviation and Transportation
Security Act. The extension affords consumers assurance that efforts will
be made to provide them with transportation in the event that a financially
distressed carrier actually ceases operation. Section 145 expired on Nov.
19, 2004.
If the Junk Fax Prevention Act (S. 2603) does not pass in December, there
will be a six-month window in which to get a new bill passed during the
new Congress or to comply with the Federal Communications Commission's
decision to require signed written consent before sending a commercial
fax.
Congress Returns for Lame-Duck Session; ASTA Has Unfinished Legislation
With elections over, Congress returned to Washington on November
15 facing such unfinished business as completing nine appropriation
bills and passing legislation to raise the debit limit by November 18
so the U.S. government does not default. The quick solution to this unfinished
business is an omnibus-spending bill. The House has already set aside
Wednesday, November 17 for consideration of such a bill and seeks to move
it to the Senate as soon as possible.
Unless Sen. Boxer (D-Calif.) removes her hold on the Junk Fax Prevention
Act, this bill will die in the lame-duck session. ASTA members are encouraged
to immediately contact Boxer's office at 202-224-3553 and ask that she
lift her hold and allow the Senate to vote on the bill.
ASTA is also supporting amendment language in the National Intelligence
Reform Act that extends Sect. 145 of the 2001 Aviation and Transportation
Security Act. The extension affords consumers assurance that efforts will
be made to provide them with transportation in the event that a financially
distressed carrier actually ceases operation. Section 145 is valid through
November 19, 2004.
ASTA Makes Headway on Pennsylvania Travel Legislation
As a result of an October 20 meeting with seven Pennsylvania
travel agents, tour operators and the chair of the Pennsylvania House
Tourism and Recreational Development Committee, ASTA has made important
progress regarding proposed state consumer protection legislation that
would have strictly regulated Pennsylvania’s travel agencies and
tour operators. The meeting, held in conjunction with the National Tour
Association (NTA) and Rep. Robert Godshall agreed to work together to
find a solution that would protect consumers without placing undue burdens
on the travel industry.
In May of this year, Mr. Godshall held a hearing on the seller of travel
legislation at which representatives of ASTA and NTA testified. On September
10, ASTA and the Interactive Travel Services Association (ITSA) submitted
extensive comments and analysis on the draft legislation. The response
led to the revised version of the travel agent regulatory legislation
about which prompted the October 20 meeting.
Delayed Passage for Junk Fax Bill
The U.S. Senate failed to vote on the Junk Fax Prevention Act (S. 2603/HR.
4600) before leaving town for a five-week election break on October
11. Sen. Barbara Boxer (D-CA) placed a hold on S. 2603 seeking
to amend the legislation to include a “do not fax” registry.
The legislation, which passed the House on July 20, 2004, provides common
sense in regulatory relief to the Federal Communication Commission’s
(FCC) 2003 revised rules that require prior written consent before transmitting
faxes containing commercial content. Congress returns on Nov. 15 for a
lame-duck session, and enactment of this legislation solely depends on
Sen. Boxer’s actions. ASTA members should contact Boxer’s
Washington, D.C., office at 202-224-3553 or her California District offices:
San Francisco, 415-403-0100; Los Angeles, 213-894-5000; San Diego, 619-239-3884;
Fresno, 559-497-5109; San Bernardino, 909-888-8525; Sacramento, 916-448-2787,
as soon as possible requesting she lift her block on the S. 2603.
ASTA Urges U.S. House to Extend Air Traveler Protection
On October 7, ASTA president Kathryn Sudeikis urged the
House of Representatives to act favorably on the extension of protection
for consumes holding tickets on non-operating airlines, prior to Congress’
adjournment.
Section 145 provides that airline passengers holding tickets from a
bankrupt carrier for a particular route are entitled, at minimum, to transportation
on a space-available basis on any airline currently serving that route
within 60 days after an airline has suspended operations. Additionally,
the maximum fee that an airline can charge for providing standby transportation
should not exceed $25 each way. However, these protections are currently
due to expire November 19. Extension for the authorization of this requirement
is contained in The National Intelligence Reform Act, passed by the Senate
October 6. The President is expected to sign the final intelligence bill.
FCC Delays Effective Date of Fax Ban Rule
The Federal Communications Commission (FCC) announced on October
1, that it would extend for six months, through June 30, 2005,
the effective date for its determination that an established business
relationship will no longer be sufficient to show that an individual or
business has given prior express permission to receive unsolicited faxes.
ASTA is part of a coalition that filed with the FCC requesting that the
stay of the rules be extended for six months to have time to get legislation
passed that does not require permission for those faxes.
ASTA Advocacy Dinner
Over two hundred ASTA delegates gathered to celebrate the Society’s
advocacy role before Congress, in the state legislatures and within the
travel and tourism industry. On September 30 attendees
had a chance to meet with special guests, Doris Kearns Goodwin, political
analyst, and the Honorable Jim Santini, four-term member of Congress.
This black tie event allowed members to mingle with top industry leaders
and recognize the impact ASTA’s advocacy programs have on travel
and tourism issues worldwide.
Recognizing Volunteers
ASTA appreciates the many members who voluntarily testified before Congress,
State Legislatures and who participated in federal government fact-finding
industry reviews. * denotes federal appointees to the National Commission
Bonnie Adams |
Robert Kern |
Norma Pratt |
Jacquelyn Alton, CTC |
Laura Kossiski |
Harry Rimm |
John Craig |
Michael Krench |
David Rojahn |
W. Sanderson Day |
*Ted Lawson |
Peggy Rounds |
George Delanoy |
Micheal MacNair |
*Paul Ruden, Esq., CTC |
Louis Fenech, CTC |
William Maloney CTC |
Dee Runyan |
Michael Greenwald |
Terry McCabe |
Paul Taylor |
Devin Hansen |
*Ann Mitchell CTC |
Neville Teagarden |
Steve Hewins |
Stanley Morse |
Kari Thomas CTC |
Jerry Hogan |
Michael Mulvagh |
Stephanie Turner CTC |
Robert Joselyn, CTC |
Irene Ross, CTC |
Cynthia Tyo |
Jason Kaufman |
James O’Malley |
Alex Wasilov |
Tom Keefe |
Charles O’Rourke |
|
Sausage Seminar
At ASTA’s World Congress in Hong Kong, on September 28
in Government Affairs conducted a seminar entitled, See How the Sausage
is Made; ASTA & Its Allies at the Political Front. Members had a unique
opportunity to hear from key industry “movers and shakers, “
sharpen political skills, find out what’s transpiring in Washington,
DC and the 50 states, learn about the Society’s grassroots efforts,
hear firsthand about industry issues and battles as well as join NOVA-Now
One Voice-ASTA. This program seeks politically minded agents willing to
go the extra mile in ASTA’s advocacy role i.e. testifying before
congress, participating in federal and state stakeholder meetings and
contacting elected officials when called upon.
ASTA Files on CAN-SPAM
ASTA, along with a wide range of trade associations, filed comments on
Monday, Sept. 13 with Donald S. Clark, Secretary of the
Federal Trade Commission, in response to the FTC’s CAN-SPAM proposed
rule. The comments specifically addressed the clarification on the definition
of the primary purpose of an e-mail message. It is important for the FTC
to provide a clear standard on the definition as many businesses today
depend on e-mail as a medium for commerce and communications.
Extension Petition Filed at FCC
The Fax Ban Coalition filed a petition on Aug. 10 with
the Federal Communications Commission (FCC) requesting that the implementation
of new fax rules be extended from Jan. 1, 2005, to June 30, 2005. The
purpose of the extension is to provide Congress with additional time in
September to enact the Junk Fax Prevention Act (H.R. 4600/S. 2603), which
has passed the House by a voice vote. The Senate Companion bill was reported
out of the Senate Commerce Committee on July 22, 2004, and the full Senate
is expected to vote on S. 2603 when Congress reconvenes in September.
Passage of this legislation requires continued ASTA grassroots involvement
throughout the summer months to ensure a victory when Congress returns
in September. When visiting with your elected leaders, encourage their
support for this legislation.
ASTA Issues Call for Action on Fax Bill
The Senate Commerce Committee intends to markup S. 2603, the Junk Prevention
Act, on July 22. ASTA members were sent a “Call
to Action” today urging them to contact the Senate Commerce members
seeking support for S. 2603 as introduced and vote against any amendments
offered during the session. The Federal Communications Commission (FCC),
along with the support of several state Attorneys General, are requesting
that S. 2603 be modified to redefine an Established Business Relationship
(EBR). H.R. 4600, the companion bill, is expected to reach the House for
a floor vote on Wednesday morning.
Senators Introduce Companion Fax Ban Legislation
Senators Gordon Smith (R-OR), George Allen (R-VA), Fritz Hollings (D-SC)
and John Sununu (R-NH) introduced S. 2603 on June 24
and added Sen. John Breaux as a co-sponsor on June 25. S.2603 is the companion
bill to the "Junk Fax Prevention" bill, H.R. 4600, which was
reported out of the House Energy and Commerce Committee by a voice vote
on June 24. ASTA members are urged to contact their members of Congress
today seeking support for, and quick passage of, this legislation.
House Subcommittee Holds Junk Fax Hearing
Rep. Fred Upton (R-MI), chairman of the House Subcommittee on Telecommunications
and the Internet, held a hearing on June 15 regarding
the Junk Fax Prevention Act of 2004. According to Rep. Upton, the legislation
provides common sense in regulatory relief to the Federal Communication
Commission’s (FCC) 2003 revised rules that require prior written
consent before transmitting faxes containing commercial content. ASTA
participated in the drafting of the bipartisan bill that is to be introduced
on June 16. Society members will be called upon to partake in grassroots
efforts seeking the bill’s enactment by year's end.
ASTA Supports SBA’s Reclassification of Agency Size Standards
In a June 14 letter to the Small Business Administration
(SBA), ASTA praised the agency for its intention to change the travel
agency industry size standard from its current level of $3 million in
revenue to an employee-based standard. Under the proposed rulemaking,
a small travel agency would now be defined as having fewer than 50 employees
rather than $3 million in annual revenues. In its letter, however, the
Society strongly urged the SBA to take its reclassification a step further
by raising the number of employees to 100.
ASTA Files Recommendations to FTC on Spam Act
On April 27, ASTA, on behalf of the Society, the Cruise
Lines International Association (CLIA) and the National Tour Association
(NTA), recently responded to the Federal Trade Commission’s (FTC)
CAN-SPAM Act rulemaking regarding management of commercial e-mail, in
which it addressed matters that strongly affect travel agents and the
travel industry. ASTA also is a signatory on a letter to FTC Secretary
Donald Clark sent by the Society and 22 other associations, which addresses
these issues in broader policy terms.
DOT Withdraws Proposed Amendments to Policy Statement
The Department of Transportation (DOT) had proposed to amend its existing
policy statement on fare advertising, which requires airlines and travel
agents to disclose the full price for an airline ticket (including all
airline surcharges and most government fees) by applying the policy statement
to computer reservations systems (CRSs) and requiring travel agents to
separately state the amount of any service fees charged by the travel
agency. On April 20, after considering the comments,
the Department has decided to withdraw the proposals, because the record
does not persuasively show that they are necessary or would be beneficial.
The existing policy statement will remain in effect without change. ASTA
opposed the proposals from the beginning of the rulemaking proceeding,
filing comments and reply comments and also participating in oral argument
on the issues.
GAO Reviews CAPPS II Cost
The U.S. General Accounting Office (GAO) is reviewing the cost of the
Computer Assisted Passenger Prescreening System II (CAPPS II) program.
On April 19, ASTA representatives met with the GAO regarding
the program's cost to travel agents. The GAO's audit will entail the following
three questions: 1) What are the costs to the government to develop, implement,
and operate this system? 2) What financial implications will the system
have on domestic and foreign air carriers and the travel industry? 3)
What processes or procedures should be taken to minimize any impact on
passengers?
ASTA Meets with TSA
On April 14, Representatives of ASTA, including staff
and travel agency members, met with the Transportation Security Administration
(TSA) to discuss the plans for and implications of the new Computer Assisted
Passenger Pre-Screening System (CAPPS II) that is in development at TSA.
The expected CAPPS II system will require that additional consumer data
be included in every PNR. The two-hour meeting included a detailed presentation
by TSA of the current thinking about the content of CAPPS II. There was
considerable discussion of CAPPS II elements that may affect how travel
agents do business or that could deter consumers from traveling. TSA has
committed to continuing dialogue with ASTA and its members as the CAPPS
II process continues to mature.
ASTA Fights Taxes On Travel Agency Income
Florida
On April 13 ASTA South Florida Chapter member, Michael
Greenwald, president of Personalized Travel, Inc. of Oakland, Park, Fla.
represented ASTA (and the National Tour Association) before the state
of Florida’s Senate Taxation Committee in Tallahassee. The subject
was potential legislative efforts to increase hotel occupancy taxes by
including intermediary service fees in the amount subject to taxation.
As a result of our work, in conjunction with the Interactive Travel Services
Association (“ITSA”), the proposed bill has lost momentum
and there is doubt about its advancement through the process.
Massachusetts
ASTA and ITSA developed a statement and distributed it to select legislative
leaders to oppose elements of the Governor’s tax and budget package
that would extend hotel taxes to services provided by an intermediary,
including travel agents. We believe our efforts have been successful,
but continue to monitor the situation. If a grassroots effort is necessary
here, you will hear from us.
Note: Members should be on the alert for similar legislation, or
even discussion of such legislation, in other states. Alert ASTA Government
Affairs at governmentaffairs@astahq.com if you have anything to report.
ASTAPAC Celebrates 25 Years
Established in 1979, ASTA's Political Action Committee (ASTAPAC) is celebrating
its 25th anniversary of building influence for the travel agency in the
political arena. ASTAPAC has succeeded through the thousands of personal,
voluntary contributions from ASTA members. During the month of March,
voting members of ASTA will receive ASTAPAC's annual campaign information
outlining the Society's legislative initiatives and the role the PAC plays
in these efforts. It is important for members to sign and return the postage-paid
white ASTAPAC Solicitation Authorization Card to ASTA, which legally grants
ASTAPAC permission to solicit for contributions. Contributions and gifts
to ASTAPAC are not deductible as charitable contributions for federal
income tax purposes.
ASTA Meets with DOT
Representatives of ASTA's legal, industry and government affairs met with
members of the Department of Transportation (DOT) decision-making committee
on February 25 to present ASTA's arguments for creating
a special box on tickets for agents' service fee charges and for improvements
in the Travel Agent Arbiter program by expanding the arbiter's jurisdiction
to include arbitration of debit memos. Language directing the Secretary
of Transportation to consult with travel agent and airline representatives
on these two provisions was contained in the Federal Aviation Administration
(FAA) Reauthorization Bill enacted in 2003. Initially these recommendations
stemmed from the final report of the National Commission to Ensure Consumer
Information and Choice in the Airline Industry. DOT is required to file
a congressional report on these issues by May.
Tax Gap Measure
In its annual report to Congress, the Internal Revenue Service's (IRS)
National Taxpayer Advocate has recommended a withholding scheme to certain
payments made to independent contractors. The report identifies $81.2
billion of unreported and underreported taxes attributed to independent
contractors. The IRS cannot exercise the regulatory process to enforce
this withholding scheme. It must seek congressional authority to do so.
ASTA, along with 25 representatives of the small business community, met
with the National Taxpayers Advocate on February 24 to
discuss the independent contractor withholding mechanism and the burden
it places on small businesses. ASTA will continue to monitor this issue
as congressional appropriators begin the 2005 federal budget process and
zero in on tax gap measures.
Travel Industry Honors Rep. Istook
At a Capitol Hill reception on February 23, industry
leaders from the American Bus Association, National Tour Association,
Student Youth Travel Association and ASTA paid tribute to Rep. Ernst Istook
(R-Okla.) for his years of support and friendship to the travel and tourism
industry. Istook is the chairman of the House Appropriations Subcommittee
on Transportation and Treasury. Istook was key in ASTA's fight against
non-profit organizations that engaged in commercial sales of travel and
travel services and abused their tax status by not paying the required
unrelated business income tax.
ASTA Alerts FCC and Congress
In a letter dated January 14, 2004, ASTA alerts and provides
information to the FCC Chairman and its Commissioners that the decision
to change the Commission’s interpretation of the Telephone Consumer
Protection Act (TCPA) regarding commercial faxes has resulted in a series
of threatened and actual lawsuits within the travel industry. A copy of
the letter was also sent to key House and Senate Committees.
CRS Rules Deregulated
The Department of Transportation (DOT) formally posts the final CRS rule
notice in the January 7, 2004, Federal Register (Volume
69, Number 4). The DOT drops most of its rules governing CRSs on January
31, 2004; the remaining two follow on July 31. ASTA views this favorable
outcome as a major industry victory.
2003 Accomplishments
FAA Reauthorization Bill Goes to White House
On November 21, 2003, the Senate cleared the House/Senate
conference report on H.R. 2115, the Flight 100 Century of Aviation Reauthorization
Act. The conference report establishes a $62 billion authorization of
the Federal Aviation Administration (FAA) and aviation-related programs
through fiscal 2007. It now proceeds to the White House for the president's
signature. A provision calling for the Secretary of Transportation to
consult with airline and travel agency industry representatives to discuss
improvements in the Travel Agent Arbiter program and creating a special
box on tickets for agents' service fee charges is included in the final
conference report. After enactment, the Secretary would have six months
to report to Congress on any action taken regarding the recommendations,
which stemmed from the final report of the National Commission to Ensure
Consumer Information and Choice in the Airline Industry.
CRS Rulemaking
On September 25, 2003, travel agents including representatives
from ASTA and the Travel Management Alliance, along with representatives
from Sabre Holdings Corp., convened on Capitol Hill to educate members
of Congress about the Department of Transportation's proposed CRS rulemaking
and the consequences involved if the rules are adopted as written. Travel
agents from across the country joined in the effort by signing more than
3,300 petitions calling upon the Bush Administration to reject these rules
and deregulate travel distribution. Words of support and encouragement
were received during the press conference from Reps. Sue Kelly (R-NY)
and John Sweeney (R-NY); Terry McCabe, president of Stratton Travel Management;
Jim Conran, chairman of Travelers First; and Fred Smith, Jr., founder
and president of Competitive Enterprise Institute. The National Business
Travel Association (NBTA) added its voice to the cause via a letter it
sent to President Bush.
ASTA Files Petition with FCC
On August 26, 2003, ASTA, with other concerned businesses
(known as the Travel Industry Petitioners), filed a petition with the
Federal Communications Commission (FCC) requesting that the Commission
reconsider and clarify the rules pertaining to unsolicited faxes that
were adopted by the FCC on June 26. This petition is a follow-up to ASTA's
request for an emergency stay of the rules filed earlier with the FCC.
That petition, among many, helped convince the Commission to delay most
of the rules until January 2005. For more detailed information, go to
www.astanet.com/members/center/legal_fax.asp.
ASTA Participates in SBA Roundtable On Homeland Security Agenda
ASTA participated in the Small Business Administration (SBA) Office of
Advocacy's roundtable on the Department of Homeland Security's (DHS) Semi-Annual
Regulatory Agenda on Aug. 5, 2003. The purpose of the
meeting was to review DHS pending regulatory rulemakings and determine
where the SBA could be most effective in preventing unnecessary DHS regulatory
burdens on America's small businesses. ASTA and the National Tour Association
(NTA) urged support from the SBA Chief Advocate, Thomas Sullivan, to push
DHS to establish an Office of Traveler Impact Assessment (OTIA) that would
offer review and comment on the potential for serious traveler disruptions
arising from regulations and alerts.
ASTA Urges Congress to Stop FCC Rule On Unsolicited Faxes
On July 25, 2003, the Federal Communications Commission
(FCC) announced it would make it unlawful to send a fax with commercial
content to anyone without first obtaining signed written consent. The
rules abolish the Established Business Relationship, as a basis for presuming
consent exists. The rules become effective August 25, 2003, unless stayed
by the FCC, and will apply to virtually everyone. ASTA President, Richard
Copland, CTC, sent letters to key Senate and House committee members who
have jurisdiction over telecommunications issues and urged them to take
immediate action to stop the implementation of this rule. To view the
letter, go to www.astanet.com/govaffairs/index.asp.
For continued updates on the FCC rule go to www.astanet.com/members/center/legal_fax.asp
August Recess
On July 25, 2003, The U.S. House of Representatives headed
home after concluding its business and will return on September 2, 2003.
The U.S. Senate will follow this Friday, August 1, 2003. ASTA members
should make every attempt to meet their lawmakers in their district offices.
By developing good working relationships and regularly meeting with members
of Congress, travel agents can get their message across, and representatives
in turn can address travel agent issues when Congress reconvenes in Washington,
D.C. Speak out about the status of your agency and the concerns you have
in the months ahead.
Legislative Language Advances
On July 24, 2003, a House/Senate conference took place
on H.R. 2115, the Flight 100 Century of Aviation Reauthorization Act.
The provision calling for the Secretary of Transportation to meet with
airline and travel agency industry representatives to discuss improvements
in the Travel Agent Arbiter program and creating a special box on tickets
for agents' service fee charges was included in the conference report.
Both chambers are expected to vote on the conference report in September
when Congress returns from recess. After enactment, the Secretary would
have six months to report to Congress on any action taken regarding the
recommendations, which stemmed from the final report of the National Commission
to Ensure Consumer Information and Choice in the Airline Industry.
SBA Reauthorized For Two Years
On July 24, 2003, The House Small Business Committee
marked up legislation that reauthorizes the Small Business Administration
(SBA) for two years and streamlines its programs to better service Americas
small businesses. Included in the legislation is language to suspend payment
on principal and interest and to extend the deadline to resubmit to the
SBA Economic Injury Disaster Loan (EIDL) program for businesses in the
initially declared disaster areas resulting from the terrorist attacks.
If passed, they would have to demonstrate to the SBA that their businesses
continue to be directly impacted by the events of Sept. 11 in order to
justify suspension of payment of principal and interest for a two- to
five-year period. The language also allows businesses in the declared
areas to resubmit their EIDL applications for reconsideration if they
were denied originally. The House SBA Reauthorization bill is a long way
from enactment and will eventually end up in conference, as the Senate
SBA Reauthorization bill is widely different from the House version.
ASTA Testifies Before House Small Business Subcommittee
On June 26, 2003, The House Small Business Subcommittee
on Regulatory Reform and Oversight held a hearing titled, "CRS Regulations
and Small Business in the Travel Industry." The chief counsel for
the Small Business Administration's Office of Advocacy, Thomas M. Sullivan,
was scheduled to testify. ASTA's key witnesses were Paul Ruden, Esq.,
CTC, ASTA senior vice president of legal and industry affairs; Norma Pratt,
president of Rogers Travel, Inc., in Philadelphia, Pa.; and David Rojahn,
president of DTR Travel in Englewood, Colo. Also joining ASTA at the witness
table were representatives from Sabre and National Travel Systems of Lubbock,
Texas.
 |
Testifying at the hearing are (from left):
ASTA Senior Vice President Paul M. Ruden, Esq., CTC;
Richard A. Cooper;
*David L. Rojahn;
*Norma R. Pratt; and
Sabre Executive Vice President and General Counsel David Schwarte.
Not pictured is the Hon. Tom Sullivan, Chief Counsel of the U.S.
Small Business Administration's Office of Advocacy
* denotes ASTA members |
FAA Reauthorization Bills Pass In House, Senate
On June 11 & 12, 2003, two versions of the Federal
Aviation Administration (FAA) Reauthorization Bill recently passed in
the House and Senate. The bill's purpose is to fund the FAA for four years
and to address aviation-related issues such as airport project streamlining,
federal aviation reform, airline service improvements and airport development.
It also contains a provision calling for the Secretary of Transportation
to meet with airline and travel agency industry representatives on two
recommendations from the National Commission to Ensure Consumer Choice
and Information in the Airline Industry's final report. The recommendations
are for improvements in the Travel Agent Arbiter program and for a special
box on tickets for agents' service fee charges. After enactment, the Secretary
would have six months to report to Congress on any action taken regarding
the recommendations. The House and Senate bills will now head to conference.
Senate Small Business Committee Weighs In on CRS Docket
On June 9, 2003, the U.S. Senate Committee on Small Business
and Entrepreneurship sent a joint letter to Transportation Secretary Norman
Mineta urging the DOT to revisit the impact the Computer Reservation System
(CRS) proposed rulemaking would have on small businesses. Currently, 98
percent of travel agencies are classified as small businesses. The letter
was signed by Sen. Olympia Snowe, (R-Me.), committee chair, and Sen. John
Kerry (D-Mass.), committee ranking member. ASTA New England Chapter President
Tom Keefe and W. Sanderson Day, president of ASTA's Maine Subchapter,
played key roles in convincing the senators to weigh in on the DOT's proposed
rulemaking.To read the full Committee letter, visit http://sbc.senate.gov/agencies/sbrefa/sbrefa15.pdf.
To read ASTA's press release, see http://www.astanet.com/news/index.asp
National Commission Recommendations
In November 2002, Congress received the final report of the National Commission
To Ensure Consumer Choice and Information in the Airline Industry. Although
the report offered no legislative mandates, it did support actions to
assist agents in becoming more efficient. A provision in H.R. 2115, the
'Flight 100 - Century of Aviation Reauthorization Act,' introduced on
May 15, 2003, calls for the Secretary of Transportation
to meet with representatives of the airline and travel agency industry
on two Commission recommendations. The recommendations are for improvements
in the travel agent arbiter program and for a special box on tickets for
agents' service fee charges. The House is expected to vote on H.R. 2115
on Wednesday, June 11 or Thursday, June 12, 2003. ASTA
is working with the Senate to include identical language in its FAA Reauthorization
bill, which is expected to reach the floor soon.
ASTA Testifies Against Proposed DOT Changes to CRS Rules
On May 22, 2003, ASTA testified at a public hearing before
the U.S. Department of Transportation (DOT) concerning the DOT's pending
rulemaking on computer reservations systems (CRS). Paul M. Ruden, Esq.,
CTC, ASTA senior vice president of legal and industry affairs, represented
ASTA. Ruden stated, "The rules proposed … will devastate the
retail travel agency business, driving out thousands more agencies and
impairing further the ability of consumers to get objective information
about travel options." Read ASTA's release at http://www.astanet.com/news/index.asp.
Terry McCabe from Stratton Travel Management, an ASTA member company,
also testified. To view Terry McCabe's testimony go to http://www.astanet.com/govaffairs/index.asp.
ASTA Supports Relief for Businesses Affected By SARS
ASTA strongly supports a move by Rep. David Wu (D-Ore.) urging the Small
Business Administration (SBA) to provide economic disaster relief funds
for businesses that have been adversely affected by Severe Acute Respiratory
Syndrome (SARS). On Tuesday, Rep. Wu sent two letters, signed by more
than 50 members of Congress, to President Bush and SBA Administrator Hector
V. Barreto. The letters ask that SBA make available low interest Economic
Injury Disaster Loans to allow small businesses, ailing because of the
epidemic, to meet their ordinary operating expenses, and avoid bankruptcy.
Read ASTA's release at http://www.astanet.com/news/index.asp
ASTA Supports House's 'Export Freedom to Cuba Act'
ASTA strongly supports efforts to eliminate travel restrictions to Cuba,
as reflected in H.R. 2071, which was introduced last week in the House
of Representatives. The Export Freedom to Cuba Act of 2003 would bar implementation
of economic restrictions that effectively preclude travel to Cuba for
most Americans. Read ASTA's press release at http://www.astanet.com/news/index.asp
Extended Unemployment Compensation
Travel agents who have been laid off on or after Sept. 11, 2001, due in
whole or part to the reduction of airline service or airport closures
resulting from the terrorist actions or as a result of the conflict in
Iraq, should contact their state workforce agency to see if they qualify
for additional Temporary Extended Unemployment Compensation for Displaced
Airline Industry and Related Workers, as described in U.S. Department
of Labor Unemployment Insurance Program Letters No. 30-02 Change 2 dated
April 25 and No. 30-02 Change 3 dated May 7.
See http://ows.doleta.gov/dmstree/uipl/uipl2k2/uipl_3002c2.htm
and http://ows.doleta.gov/dmstree/uipl/uipl2k2/uipl_3002c3.htm.
For additional information, see http://www.ows.doleta.gov/unemploy/factsheetteuc_a.asp
To access state workforce agencies, go to http://www.dol.gov/dol/location.htm.
Benefit extensions were included in emergency wartime supplemental appropriations
(PL 108-11).
ASTA Expresses Continuing Support for 'Freedom To Travel'
ASTA strongly supports efforts to eliminate travel restrictions, as reflected
in Senate Bill 950 introduced by Sens. Max Baucus (D-Mont.), Byron Dorgan
(D-N.D.), Jeff Bingaman (D-N.M.), Lincoln Chafee (R-R.I.), Larry Craig,
(R-Idaho), Mark Dayton (D-Minn.) and Tim Johnson (D-S.D.). The bill, The
Freedom To Travel To Cuba Act, would bar implementation of economic restrictions
that effectively preclude travel to Cuba for most Americans. Read ASTA’s
release at http://www.astanet.com/news/index.asp.
ASTA Testifies Before Congress
On April 30, the House Energy and Commerce Subcommittee
on Commerce, Trade and Consumer Protection held a hearing entitled, "Travel
and Tourism in America Today." ASTA's Senior Vice President for Legal
and Industry Affairs, Paul Ruden, joined industry representatives from
the airlines, hotels, amusement parks and the U.S. Chamber of Commerce
at the witness table to report on the current status of the industry.
The text
of Ruden's testimony is available on ASTAnet.
ASTA Works to Exempt Agencies from Money Laundering Regulations
On April 15, 2003, ASTA filed comments with the Department
of the Treasury regarding the department's Advance Notice of Proposed
Rulemaking for Anti-Money Laundering Programs. ASTA said that travel agencies
should be exempted from formal regulation. But, if the Treasury concluded
that further measures were necessary, a framework could be created in
which agencies could become more vigilant for, and report, suspicious
activities. ASTA proposed that educational materials be prepared that
inform travel agency personnel what money laundering is, why it is harmful
and must be controlled, what attempts are most likely to occur in the
travel agency business and what must be done to thwart such attempts.
ASTA Helps Protect Taxpayer Funds
ASTA, as part of a large industry coalition, recently worked to prevent
taxpayer funds from being used to support Orbitz or other non-security
related activities. Thanks in
large part to the lobbying efforts of this coalition, the legislative
report on recently passed legislation providing financial assistance to
airlines states that the moneys should address aviation security and should
not be used to support non-security related business activities, including
ticket agent ventures, such as Orbitz. President Bush signed the wartime
supplemental appropriations bill (PL 108-11) on April 16, 2003.
ASTA Government Affairs Surveys Members
To support ASTA’s Treasury comments to the U.S. Treasury Department's
Advanced Notice of Proposed Rulemaking, regarding whether travel agencies
should be subject to anti-money laundering regulations under the USA Patriot
Act, Government Affairs has launched a survey entitled, ASTA Survey on
Money Laundering Through Travel Agencies. Responses from ASTA member to
the survey will provide real life examples of activities that take place
in travel agencies and data needed to craft ASTA’s filing. The collected
information is also the best way to assure that travel agencies are not
subject to any more regulations and record-keeping than is absolutely
necessary to prevent money laundering.
ASTA's Response to Airline Aid Bill
In a letter to Transportation Secretary Norman Mineta dated March
20, 2003, ASTA expressed support for rational measures to keep
the airline industry solvent until recovery becomes possible. ASTA also
stated that any additional federal resources granted to financially help
the airline industry should be carefully conditioned to prevent the U.S.
airlines from using taxpayer funds to support an activity not directly
related to air carrier operations. ASTA further stated that whatever actions
Congress and the Bush Administration pursue, they must ensure that the
truly independent travel agency distribution system remains viable throughout
the Iraqi conflict. Read the letter at http://www.astanet.com/govaffairs/docs/MinetaLetter032003.doc.
Coalition Building
A major objective of ASTA's Government Representation Committee is to
foster alliances with industry-specific coalitions. Recently, ASTA joined
the Communities for Economic Strength Through Aviation (CESTA), which
is seeking legislation to help prevent disruptions in air service by updating
the Railway Labor Act (RLA) of 1926, the law that governs airline labor
contracts. Too often, the RLA process leads to bitter negotiations, service
disruptions and strikes, resulting in costs and inconvenience to travel
agents and the traveling public. To learn more about CESTA's efforts,
visit http://www.cestacoalition.org.
Democrats Write Mineta
On behalf of ASTA and the large industry coalition, 15 Democrat members
of the House Small Committee co-signed a March 20, 2003
letter to Secretary Mineta regarding the DOT’s proposed CRS rulemaking.
The letter points out that the DOT rule is not supported by an analysis
to determine the economic impact the Department’s proposal will
have on small businesses. Under the Regulatory Flexibility Act, federal
agencies are required to provide this information before a final rule
is released.
ASTA Opposes Proposed DOT Changes to CRS Rules
ASTA stated that the Department of Transportation's (DOT) proposed changes
to the Computer Reservation System (CRS) rules will devastate the travel
agency distribution system and leave consumers with less information and
choice at a time when they need it most. Read the release at http://www.astanet.com/news/index.asp.
To view the DOT Notice of Proposed Rulemaking (NPRM) docket, which includes
ASTA’s March 14, 2003 comments, as well as the
airline industry, CRS vendors, consumer groups, policy think tanks and
travel agents, go to http://dms.dot.gov/search/searchResultsSimple.cfm?numberValue=2881&searchType=docket
and use the "Go to page" feature at the bottom to reach current
documents on pages 8 and 9.
Senate Small Business Chair Holds Roundtable
On January 29, 2003, ASTA participated in the Senate
Committee on Small Business & Entrepreneurship small business roundtable
discussion to determine the Committee’s agenda for the l08th Congress.
Senator Olympia Snowe (R-ME) the newly appointed chair of the committee
invited over 35 small business organizations to identify critical issues
facing all small businesses. Senator Snowe highlighted her concerns on
health care coverage, regulatory compliance issues, government contract
unbundling and women issues as top priorities. ASTA encouraged Senator
Snowe to take action to pass legislation making the Small Business Administration’s
(SBA) Office of Advocacy truly independent to follow through with Federal
Agencies and their compliance with the Regulatory Flexibility Act.
On September 24, 2002 ASTA released a statement to Congress
saying that any new governmental assistance to the airlines should require
fundamental changes in the carriers’ practices. ASTA proposed the
following six airline concessions in order to protect the interest of
taxpayers: foster competition and ameliorate antitrust concerns by discontinuing
Orbitz; withdraw proposals for domestic code-haring agreements between
major carriers; supply Congress with plans for reforming pricing and service
to achieve profitability; eliminate punitive non-refundable ticket restrictions;
participate in nation-wide stakeholders air transportation conference,
and make all air fares accessible though all distribution channels.
In a
letter to the Federal Trade Commission (FTC) dated August 12,
2002, ASTA applauds the FTC efforts in holding a Fall public
workshop on “Possible Anticompetitive Efforts to Restrict Competition
on the Internet.” Recognizing that the FTC has no jurisdiction over
airline-related matters, ASTA submitted to the FTC its comprehensive testimony
presented before the National Commission on June 12, 2002 stating concerns
about Orbitz, which is designed to undermine the pro-consumer economics
of Internet travel distribution.
On August 8, 2002 ASTA’s
Government Representation Committee Chair, Richard Berns, launched a grassroots
effort encouraging ASTA members to visit with their elected officials
in their local district offices, at town meetings or even on the campaign
trail. This grassroots program follows on the coattails of a very successful
day several senior travel industry executives had in Washington on July
30, 2002 and keeps the momentum rolling throughout the next few months.
Click on http://www.astanet.com/members/center/legal_involved.asp
to view prepared materials for congressional visitors and/or letter writing
efforts.
The final public hearing of the National Commission
to Ensure Consumer Information and Choice in the Airline Industry was
held on July 31, 2002 in Washington, D.C. Among the witnesses
testifying were economists, academics and travel consultants. On August
1 and 2, the Commissioners met to begin deliberations. The Commission
was established to examine the impact on travel agents of airline marketing
practices and to determine if impediments block the distribution of air
travel schedule and fare information to the traveling public through travel
agents. The Commission must transmit a report to the President of the
United States and Congress by mid-November. To view all testimony presented
before the Commission go to http://www.astanet.com/travel/consumeraccess.asp
On July 30, 2002, William Maloney,
ASTA Executive Vice President and COO, joined senior travel industry executive
from Cendant, Expedia, Sabre, Travelocity and Trip Network for a day of
meetings with officials at the White House, Departments of Transportation
and Commerce as well as Members of Congress. Their mission was to discuss
industry concerns regarding the anti-competitive effects of Orbitz, the
airline-owned and controlled Web site. The executives appealed by letter
to the Bush Administration to intervene immediately and decisively –
before irreparable harm to consumers and competition occurs. To view the
letter to the President, access http://www.astanet.com/members/center/docs/orbitzletter.pdf
ASTA's Senior Vice President of Legal/Industry Affairs,
Paul Ruden, testified before the House Energy & Commerce Subcommittee
on Commerce, Trade and Consumer Protection on July 18, 2002.
The title of the hearing was "Are All Online Travel Sites Good for
the Consumer: An Examination of Supplier-Owned Online Travel Sites."
Ruden commented on e-commerce and
what it means to the traveling public. Since October 2001, this marks
the fifth time ASTA has been a key witness on travel agency issues before
five major hearings on Capitol Hill.
On July 11, 2002, The
National Commission to Ensure Consumer Information and Choice in the Airline
Industry conducted its third public hearing in San Francisco, CA.
The following ASTA members testified at the hearing: George Delanoy, Brea
Travel, Brea, CA.; Steve Hewins, Hewins/Carlson Wagonlit Travel, Portland,
ME; Robert Kern, Jr., PNR Travel, Los Angeles, CA. and David Rojahn, DTR
Travel, Inc., Englewood, CO. The Commission was established to examine
the impact on travel agents of airline marketing practices and to determine
if impediments block the distribution of air travel schedule and fare
information to the traveling public through travel agents. The Commission
must transmit a report to the President of the United States and Congress
by mid-November.
The National Commission to Ensure Consumer Information
and Choice in the Airline Industry held its second public hearing on June
26, 2002. The following five ASTA members testified on the effects
of airline practices on consumers and travel agents: Devin W. Hansen,
Sunflower Travel Corp., Wichita, KS.; James M. O'Malley, Diplomat Travel
Agency, Chicago, IL.; John A. Craig, Pathfinder Travel & Cruises,
Olathe, KS.; Stephanie Turner, CTC, Brentwood Travel Service, St. Louis,
MO.; Cynthia A. Tyo, Travel Travel Fargo-Moorhead, Fargo, ND.
As of June 25, 2002 the Small Business
Administration (SBA) approved 427 travel agency applications in 48 states
and Puerto Rico for a total of $21.6 million in Economic Injury Disaster
Loans (EIDL). The average loan size was $50,579. The deadline for travel
agencies to submit new SBA loan applications is Sept. 30, 2002. The SBA
reinstated and extended the loan program's application filing deadline
to businesses outside the disaster areas to be consistent with businesses
in the declared disaster areas of the World Trade Center and Pentagon.
ASTA members interested in applying for the SBA loan program can find
vital information on ASTAnet by accessing http://www.astanet.com/travel/information/info_sbaloans2.asp
or by visiting http://www.sba.gov.
Rep. Felix Grucci (R-NY), along with thirteen House
colleagues, co-signed letters dated June 21, 2002, to
Read Van de Water, Assistant Secretary for Transportation, and R. Hewitt
Pate, Deputy Assistant Attorney General at the U.S. Department of Justice
(DOJ), expressing concerns about Orbitz's "anti-competitive, anti-consumer
effects... on travel distribution." The Departments of Transportation
and Justice were both urged to intensify their ongoing investigation of
Orbitz and to stop the major airlines from withholding discount airfares
from travel agencies.
The letters are a follow-up of the issues aired on
May 2, 2002, before the House Subcommittee Regulatory
Reform and Oversight hearing on travel agency issues. ASTA Government
Affairs assisted Rep. Grucci’s office in obtaining the following
signatories to the letters: Reps. Nydia Velazquez (D-NY); Ben Gilman (R-NY);
Rosco Bartlett (R-MD.); John Sweeney (R-NY); Peter King (R-NY); John McHugh
(R-NY); Sue Kelly (R-NY); Jim Walsh (R-NY); Maurice Hinchey (D-NY.); Anibal
Acevedo-Vila (D-PR); Steve Israel (D-NY); Sherwood Boehlert (R-NY) and
Charles Gonzalez (D-TX).
On another note, Reps. Dick Armey (R-TX); John Conyers (D-MI.) and Henry
Hyde (R-IL.) have recently written separate letters to the DOJ in support
of Orbitz and calling for an end to the DOJ investigation.
ASTA joins with the National Tour Association (NTA)
in a meeting with officials in Washington, D.C., on May 16, 2002
to discuss procedural changes for tour/charter access to the U.S. Capitol
Building. The changes will allow visitors to access the building during
construction of the Capitol Visitor Center. NTA led a task force composed
of the American Society of Travel Agents (ASTA), the American Bus Association
(ABA), the Capitol Historical Society, American Association of Retired
Persons (AARP) and the Guild of Professional Guides of Washington, D.C.
ASTA Executive Vice President and COO, William Maloney,
was the first witness to testify at the initial June 12, 2002
public hearing of the National Commission to Ensure Consumer Information
and Choice in the Airline Industry in Washington, D.C. Maloney’s
testimony explained how airline activity threatens consumer access to
price and schedule information, preventing optimal choice-making in the
purchase of air travel.
U.S. Secretary of Transportation, Norman Y. Mineta,
officially launched the National Commission to Ensure Consumer Information
and Choice in the Airline Industry on May 16, 2002. The
Commission was established to examine the impact on travel agents of airline
marketing practices and to determine if impediments block the distribution
of air travel schedule and fare information to the traveling public through
travel agents. This action resulted from the combined legislative efforts
of ASTA, the Coalition for Travel Industry Parity (CTIP) and the National
Tour Association (NTA).
ASTA members Jacquelyn Alton, CTC, CWT/Almeda
Travel, Inc., Houston, Texas; Louis Fenech, Jr., CTC, Royal Holiday Travel,
Inc., Sayville, N.Y.; and Stanley C. Morse, Marstan Travel of Millbrook,
LTD., Millbrook, N.Y., testified on May 2, 2002 before the House
Small Business Regulatory Reform and Oversight Subcommittee, regarding
the current issues facing the travel agency industry. Copies
of their testimony are available online.
As of April 25, 2002, the Small Business Administration
(SBA) approved 376 Economic Injury Disaster Loans (EIDL) for a total of
$19.1 million to the travel agency industry. ASTAs main legislative
focus after the events of 9-11 was to seek financial assistance for the
travel agency industry. ASTA worked closely with the SBA and Congress
in opening the EIDL program, nationwide, to small businesses outside the
declared disaster areas. ASTA also provided agents with pertinent information
to assist them with the SBA loan process.
Twenty-four members of Congress
sent a letter to the Department of Justice (DOJ) on April 23, 2002,
requesting that the Department to "intensify its ongoing investigation
of the antitrust implications of Orbitz, including its formation and its
business practices. ASTA was instrumental in seeking Congressional support
for this letter.
ASTA
delivered a special report to every member of Congress on April
9, 2002 regarding the elimination of base travel agency commissions,
calling the action anti-consumer and anti-competitive. The report provides
Congressional representatives with an overview of the status of the travel
agency industry and recommended congressional actions to support the industry.
On March 15, 2002, the Small Business Administration
(SBA) substantially raised the size standard for travel agencies seeking
low-interest Economic Injury Disaster Loans (EIDL). Prior to the change,
travel agencies with annual net revenues exceeding $1 million were disqualified
from EIDLs because the agencies were considered too large. Under the new
standard, agencies with up to $3 million in annual net revenues are eligible
for relief. ASTA Members and their advisors may access the interim
final rule published in that day's "Federal Register" regarding
travel agencies and the EIDL program.
ASTA member, Jackye Alton, president of CWT/Almeda
Travel, Houston, TX, testifies before the House Small Business Committee
on February 27, 2002 regarding the Small Business Administrations
(SBA) size standard for travel agencies. Ms. Altons joint statement
for ASTA, InterAmerican Travel Agents Society (ITAS) and the Society of
Government Travel Professionals (SGTP) called for increasing the SBA travel
agency size standard from $1 million to $3 million.
ASTA releases the ASTA
Federal Government Affairs White Paper on February 13, 2002.
Geared toward ASTA members and travel industry professionals, it provides
an insightful look at how ASTA formulates its legislative policy and advances
its issues within the Washington political arena.
On February 5, 2002, ASTA succeeded in getting
two travel agent-related amendments attached to the Senate Economic Stimulus
package. Unfortunately, Sen. Daschle (D-ND) pulled the stimulus package
after the Senate failed to reach a cloture vote.
On January 30, 2002, ASTA's Vice President
of Government Affairs, Barbara OHara, was appointed to the board
of directors of the Small Business Legislative Council (SBLC). The SBLC
is a permanent, independent coalition of nearly 80 trade and professional
associations that share a common commitment to the future of small business.
Its members represent the interests of small businesses in such diverse
economic sectors as manufacturing, retailing, distribution, professional
and technical services, construction, transportation, and agriculture.
The House Small Business Committee marked up Rep. Don Manzullo's (R-IL)
bill H.R. 3230, American Small Business Emergency Relief and Recovery
Act on November 14, 2001. The following three provisions sponsored
by Rep. Velazquez (D-NY) and heavily supported by ASTA were added to the
bill under the Disaster Loan Section: availability of grants; interest
rates to range from zero to four percent and loan forgiveness.
On November 14, 2001, ASTA's Northern California Chapter President,
Paul Taylor of Westmoor Travel Service, Sunnyvale, CA, testified before
the California Assembly Committee on Revenue and Taxation regarding the
impact the terrorist attacks had on the travel agency industry.
Sen. Bryon Dorgan (D-ND) introduces S. 1578, the American Travel Industry
Stabilization Act on October 25, 2001 which calls for a $5 billion
loan guarantee program for ARC appointed agencies and businesses operating
at airports. ASTA assisted Dorgan's office with drafting the legislation
and continues to push for Senate co-sponsors.
ASTA member Peggy Rounds of Wildwest Travel, Evanston, WY, testified
on October 29, 2001 before the Small Business Administration's
(SBA) Regulatory Fairness Board and the National Ombudsman field hearing
regarding the SBA loan program and consolidation of government travel
contracts.
The Small Business Administration (SBA) opened, nationwide, the Economic
Injury Disaster Loan program on October 22, 2001. ASTA
was in the forefront of this effort in order to gain access to working
capital for small business travel agencies following the events of September
11, 2001.
October 11, 2001 - Bonnie Adams, Lewiston Travel Bureau (Lewiston,
Maine), member of the American Society of Travel Agents' (ASTA) Sub-Committee
on Government Representation, testified before the U.S. House of Representatives
Small Business Subcommittee on Regulatory Reform and Oversight. Adams
was invited to inform the Subcommittee of the negative impact of the events
of Sept. 11, 2001, on small travel agencies and to make recommendations
for ameliorating that impact.
H.R. 2945, The Ancillary Airline Industry Relief Act of 2001, seeks $4
Billion in relief for travel agencies and other industries in the ancillary
airline industry that have incurred losses as a result of the events on
September 11, 2001. The bill would call for businesses to file applications
with the Secretary of Transportation. Applicants must prove a 50% reduction
in business to receive a grant. The bill currently has six co-sponsors.
ASTA's Government Affairs department assisted Rep. Hastings (D-FL) with
drafting this legislation.
On September 25, 2001 testifing before the House
Aviation Subcommittee on the issue of Airline Security and the Future
of the Aviation Industry, Paul M. Ruden, ASTA's, senior vice president
of legal and industry affairs called on the federal government to provide
the travel agent industry with a $4 billion financial aid package.
Speaker Hastert appoints Paul Ruden, ASTA Sr. Vice President of Industry
& Legal Affairs to the National Commission for Consumer Information
and Choice in the Airline Industry on June 12, 2001.
Following a June 11, 2001 keynote luncheon address at the Commercial
Club of Chicago, the Speaker of the U.S. House of Representatives, Dennis
Hastert, met privately with three ASTA members: John Haskins, Viking Travel
Service, Inc., of Naperville, Ill.; Tom Van Cleave, Windmill City Travel,
Inc., of Batativa, Ill.; and Tony Cosenza, Alamo Rent a Car, of Chicago,
Ill. ASTAs primary legislation, H.R. 1734, the Airline Passenger
Bill of Rights Act, was one of many topics discussed.
On May 16, 2001 Rep. John Sweeney (R-NY) and Rep. Dingell (D-MI)
co-authored a Dear Colleague letter urging members of Congress
to co-sponsor H.R. 1734, the Airline Passenger Bill of Rights Act. The
letter details extensive airline delays, lost luggage, poor customer service
and anti-competitive practices that have become a fixture of air travel.
ASTA President, Richard Copland, writes U.S. House of Representatives
seeking support for H.R. 1734 on May 14, 2001. The Airline Passenger
Bill of Rights legislation, H.R. 1743, is the centerpiece of ASTA’s
legislative agenda for the 107th U.S. Congress. In conjunction
with this congressional action, ASTA members received a fax to contact
their U.S. Representative and request support for H.R. 1734.
On May 3, 2001, Reps. Sweeney (R-NY) and Dingell (D-MI) introduced
H.R. 1734, the Airline Passenger Bill of Rights Act, at a Capitol
Hill press conference accompanied by Reps. Kelly (R-NY), DeFazio (D-OR),
Ney (R-OH) and DeLauro (D-CT). This bipartisan legislation with 26 original
co-sponsors assures the American public of appropriate treatment in exchange
for the use of the air space and the aviation facilities they provide
to airlines. It also protects the flying public from the anti-competitive
market concentration in the airline industry.
Burton Rubin testifies on ASTA’s behalf at Rep. John Larson (D-CT) public
forum on airline passenger rights legislation on April 20, 2001
in Hartford, CT.
ASTA’s Government Affairs Department launches a April 11, 2001
targeted grassroots campaign on passenger rights legislation by asking
members to write letters to editors of their local newspapers.
Paul Ruden participates on ASTA’s behalf in Rep. Dennis Rehberg (R-MT)
Air Transportation Roundtable Discussion in Billings, MT on April 6,
2001. Passenger services and rights were main topics of discussion.
An Associated Press wire story on the Roundtable mentioned ASTA and quoted
several of Mr. Ruden’s remarks on airline passenger rights.
Paul Ruden, ASTA’s Senior Vice
President of Legal and Industry Affairs, testified on March 23, 2001
before the House Committee on Energy and Commerce Subcommittee on Commerce,
Trade and Consumer Protection which examined the effect of the airline
mergers on consumers. ASTA’s position is that a reduction in the number
of major carriers is in itself unhealthy and believes no mergers should
be permitted until outstanding customer service issues are resolved. ASTA
supported enactment of passenger rights legislation as set forth in Rep.
Dingell’s bill, H.R. 907, the Airline Competition and Passenger Rights
Act and Rep. Sweeney’s bill, H.R. 384, the Airline Passenger Fair
Treatment Act.
On March 8, 2001, Rep.
John Dingell (D-Mich.) holds a Capitol Hill press conference to introduce
H.R. 907, the Airline Competition and Passenger Rights Act. The
main purposes of this legislation are to give airline passengers the rights
they deserve, and to protect the flying public from harmful, anti-competitive
market concentration in the airline industry. ASTA, Consumers Union and
Air Carriers Association of America participated in the press conference
supporting Rep. Dingell’s legislative initiative.
ASTA writes President Bush on
February 7, 2001 praising his communicating to the airlines’ that
the labor disputes plaguing the four major carriers not lead to strikes
which would ultimately disrupt air travel and undermine the fragile economy.
The letter also outlines ASTA’s positions on airline consolidation and
investment in airport and airway improvements as well as urges the President
to support aggressive actions by the Department of Transportation, Department
of Justice and Congress encouraging competition from low-cost and new
entrant carriers.
On February 7, 2001, Richard
Copland’s featured editorial in the New York Daily News on January
21, 2001 was submitted to the Senate Commerce Committee for inclusion
in the hearing record on "Airline Acquisition" and to the Senate
Judiciary Subcommittee on Antitrust, Business Rights and Competition hearing
record on "Airline Consolidation: Has It Gone Too Far?"
Rep. Sweeney (R-NY) introduces
ASTA’s flagship legislation H.R. 384, the Airline Passenger Fair Treatment
Act on January 31, 2001. Grassroots efforts are underway to
seek additional co-sponsors for this legislation. Provisions in the bill
calls for: consumer access to all airline fares regardless of technology
used to purchase air transportation; airlines to provide consumers with
accurate and timely explanation for fight delays, cancellations or diversion
from ticketed itinerary; consumers may use any part of a purchased ticket;
access to state laws for consumers and agents to resolve commercial disputes
with the airlines; and prevents airlines from terminating a ticket agent
without written notice and good cause.
Reps. DeFazio (D-Ore.) and Slaughter
(D-NY) introduce H.R. 332, the Aviation Consumer Right to Know Act
on January 31, 2001. Main provisions include: access to all airfare;
accurate information on flight delays, cancellations or diversions; consumer
may use any part of an airline ticket and clarification regarding enforcement
of state laws. ASTA assisted DeFazio’s office with drafting legislative
language for this bill.
ASTA, along with the Consumers
Union, participate in Sen. Reid’s (D-NV) Capitol Hill press conference
introducing S. 200, the Air Travelers Fair Treatment Act on January
29, 2001. Provisions contained in S. 200 are: accurate explanation
of the reasons for a flight delay, cancellation, or diversion from a ticketed
itinerary; termination of ticket agents; clarification of airline preemption
language and establishment of minimum standards for emergency medical
assistance and the right to exit an aircraft parked at an airport terminal
with access to ramp.
2000
Legislative Accomplishments - 106th Congress
The second session of the 106th
U.S. Congress was fast paced, demanding and rewarding for ASTA’s legislative
initiatives. Government Affairs focused on ASTA’s advocacy role for travel
agent issues and travelers’ rights on Capitol Hill and within the Federal
agencies. The following information outlines ASTA’s legislative involvement
and accomplishments achieved in 2000:
President Clinton signed the Department of Transportation Appropriations
bill (H.R. 4475) on October 23, 2000 which earmarked $1 Million
to fund The National Commission To Ensure Consumer Information and Choice
in the Airline Industry. ASTA's legislation, the Improved Consumer
Access to Travel Information (ICATTI), establishing the commission
was included in H.R. 1000, the Wendell H. Ford Aviation Investment
and Reform Act for the 21st Century (AIR 21) which was
enacted into law on April 5, 2000. The Commission will study the
role of travel agents in the distribution of air travel and whether the
airlines are creating barriers to block consumer access to information
and choice. This action resulted from the combined efforts of ASTA, the
Coalition for Travel Industry Parity (CTIP) and the National Tour Association
(NTA).
Secretary of Transportation, Rodney E. Slater, appointed Paul Ruden,
ASTA's senior vice president of legal, and industry affairs, to the U.S.
Department of Transportation's Air Carrier On-Time Reporting Advisory
Committee on October 20, 2000.
ASTA responds on September 7, 2000 to Department of Transportation's
invitation to submit Abest practices@ that could contribute to reducing
or avoiding consumer dissatisfaction with air transportation services.
Among suggestions submitted were the elements contained in ASTA's Air
Travelers Bill of Rights as action items the airlines could implement
immediately.
On August 24, 2000, ASTA was among the travel industry representatives
who met with the Transportation Secretary, Rodney Slater and Federal Aviation
Administrator, Jane Garvey, to discuss possible measures to alleviate
delays and cancellations and to address the impact of the delay problem
on consumers. ASTA was one of three organizations designated by the Secretary
to open the dialogue by discussing the issues from the standpoint of the
consumer.
ASTA testified before the full Senate Commerce Committee on July 20,
2000 regarding travel distribution and Internet sales of airline tickets,
including Orbitz, the proposed airline joint Web-site. ASTA argued that
this site could monopolize retail travel services on the Internet and,
ultimately, in all markets.
Senator Reid (D-NV) introduced S. 2891, the Air Travelers Fair Treatment
Act of 2000 on July 19, 2000, which is the companion bill to
H.R. 2200, the Omnibus Airline Passenger Fair Treatment Act. Ongoing
grassroots efforts continue to seek additional co-sponsors for ASTA's
flagship legislation. H.R. 2200 had 30 co-sponsors while S. 2891 had three.
Provisions in the bills call for: consumer access to all airline fares
regardless of technology used to purchase air transportation; airlines
to provide consumers with accurate and timely explanation for fight delays,
cancellations or diversion from ticketed itinerary; consumers may use
any part of a purchased ticket; access to state laws for consumers and
agents to resolve commercial disputes with the airlines; and prevents
airlines from terminating a ticket agent without written notice and good
cause.
On June 28, 2000, DOT Inspector General, Ken Mead, presented to
the Senate Commerce Committee an interim status report on the airline
industry's (customer service) commitment plans and the on-going investigation
into consumer access to information on airline ticket prices and airline
practices of overbooking flights. Mr. Mead indicated the airlines have
not lived up to all the promises in their voluntary programs. The IG's
investigation also includes the extent to which barriers exist to consumer
access to comparative price and service information from independent sources
on the purchase of air transportation. A final report is due December
31, 2000. ASTA submitted a statement on Airline Customer Services for
the Senate Commerce Committee hearing record held on June 28.
Mr. Ed Perkins, ASTA's Consumer Advocate, testified before the House
Transportation and Infrastructure Committee opposing the proposed United
Airlines and US Airways merger on June 15, 2000. Similar statements
were submitted to the House Judiciary Committee, Senate Commerce Committee
and the Senate Judiciary Subcommittee on Antitrust, Business Rights and
Competition where June hearings were also held on the merger.
The Senate Judiciary Subcommittee on Antitrust, Business Rights and Competition
held a hearing on Airline Competition, May 2, 2000. ASTA submitted
for the hearing record its February 16, 2000 complaint to the Department
of Justice on the proposed operation of a joint airline web site.
ASTA filed extensive comments with the Federal Trade Commission on March
31, 2000 urging that the FTC's regulations implementing the Gramm
Leach Bliley Act exclude most travel agency activities. That Act requires
businesses to disclose their policies regarding the use of customer personal
and financial information. Responsive to ASTA's filing, on May 17,
2000 the FTC exempted most travel agency transactions, including travelers
checks and travel insurance policies, from disclosure requirements imposed
by the G-B-L Act.
The U.S. Department of Justice announced its probe into the joint airline
Web-site on May 17, 2000. ASTA filed its request on February
16, 2000 with the DOJ, seeking an investigation and enforcement action
with respect to the stated plan of the major United States and foreign
airlines to create a joint Internet Web-site, known as Orbitz.
After decades of lobbying Congress and the U.S. Department of Treasury,
ASTA scored a victory when the Internal Revenue Service released in February
2000 a final rule providing standards and directions for taxing the
commercial activities of nonprofit travel operations. The rule includes
examples to distinguish when a tour is for education rather than vacation.
AIR 21 also calls for an investigation by the Comptroller General on
back-to-back and hidden city ticketing. The GAO's project team met with
ASTA regarding this investigation on July 13, 2000. A final report
is due in Congress early next year.
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