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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.

2002 Legislative Accomplishments

During the October 2, 2002 House Aviation Subcommittee markup of H.R. 5506, the Air Transportation Viability and Improvement Act, Rep. Shelley Berkley (D-NV) offered a Sense of the Congress amendment #016. It endorsed ASTA’s proposal that further government financial assistance to the airlines be conditioned on their participation in a dialogue on the post-Sept.11 passenger air transportation system. The Berkley amendment calling for a nation-wide stakeholder conference passed by a voice vote.

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. ASTA’s 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 Administration’s (SBA) size standard for travel agencies. Ms. Alton’s 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 O’Hara, 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.

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2001 Legislative Accomplishments
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. ASTA’s 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.

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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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