Government
FALL-OUT FROM GSA TRANSGRESSIONS
The U. S. Congress has voted to slash and freeze government travel budgets for 5 years and implement stringent oversight measures after uncovering excessive and wasteful spending by the General Services Administration, GSA for several conferences. Spending will now be capped at 80 percent of what was spent in 2010 with a ceiling on single events of $500K and agencies will be required to publish details of conference spending on the internet for public scrutiny. (TravelMole.com, May 1)
THE FAA STRUGGLES TO UPDATE AIR TRAFFIC CONTROL
The modernization of the outdated domestic air traffic control system is in serious trouble due to implementation delays and increased costs. The FAA has been struggling to replace old radar systems with satellite /GPS technology but software problems are slowing down full deployment. Airlines are not ready to spend on new cockpit systems for pilots with no deadline set for completion of the transition. (USAToday.com, Oct. 5)
US CARRIERS PUSH FOR AIRLINE POLICY
The country’s airlines are uniting to push the government to adopt a national airline policy to break away from the heavy taxation and regulation that has burdened the industry for decades. The campaign is getting stronger and ATA warns that airlines face a slew of new proposals to increase taxes on the airline industry as part of a long-term deficit reduction plan for the US. During short-term debt cutting negotiations among lawmakers this summer, ATA staved off two potential debt-reduction measures that involved the airline departure tax and a doubling of the aviation security fee. Momentum is building to push the Obama administration to adopt a national airline policy. (FlightGlobal.com, Sept. 24)
LATEST FAA SHUTDOWN AVERTED
The U.S. Congress approved a temporary stopgap measure to fund the Federal Aviation Administration until the end of January and the federal highway and transit programs through the end of March. At a time when we could least afford it this past summer, the government lost almost $400 million in uncollected airline ticket taxes during a bitter partisan political standoff. With the public growing intolerant of such antics, this fall, the Congress must consider a long-term budget solution to U.S. transportation woes. (NPR.org, Sept. 13)
PASSPORT DAY IN USA
On Saturday, September 17, the Department of State will host its third annual “Passport Day in the USA.” U.S. citizens throughout the country may apply for a passport book or passport card at all regional passport agencies and participating passport application acceptance facilities, including post offices and clerks of court. Passport agencies are normally closed on Saturdays. This is a great opportunity for all travelers to apply for a first-time passport or to renew their current passport. The Department of State is encouraging applicants to apply early and avoid a last-minute rush. U.S. citizens may apply directly at passport agencies without making an appointment. Both routine and expedited processing service may be requested. To reduce wait times on September 17, customers are encouraged to complete applications online, print the completed forms, and bring them to the passport agencies and acceptance facilities. (State.gov, Sept. 12)
NATIONAL AIRLINE POLICY
The Air Transport Association of America, Inc. (ATA) called on the FAA to accelerate its timetable for implementing new and more efficient air traffic procedures. The ATA has asked the Obama Administration and the FAA to focus its resources on expediting the most cost-beneficial elements of NextGen as well as an accelerated one-year implementation schedule for the FAA Navigation Procedures Project. They also want to streamline the National Environmental Policy Act. ATA CEO, Nicholas Calio states, “the airline industry faces daunting levels of taxation and regulation, and not addressing these matters quickly stifles our ability to further drive economic growth and puts us at greater risk to foreign competition.” (ETurboNews.com, Aug 29)
PER DIEM RATES TO INCREASE OCT. 1
Federal travelers will have more money for hotel bookings in many cities, under per diem rates set for fiscal 2012, which begins October 1. The increases, although small in some areas, suggest a slight turnaround from last year, when the General Services Administration dropped the lodging rate for 310 of the 378 nonstandard areas ’Äî the higher-cost areas where federal employees travel most frequently. The 2011 per diem rates were calculated partly using rates hotels offered in the heart of the recession, when the travel industry had cratered. Some travel industry representatives said those depressed rates were too low and didn’t take into account the hotel industry’s recovery. (FederalTimes.com, Aug 28)
THE FAA IS BACK ON TRACK
Congress passed a temporary stop-gap measure to fund the Federal Aviation Administration until mid-September. Taxes are once again being collected with the purchase of airline tickets to fund FAA functions, bringing back some 75,000 furloughed workers. The subsidizing of less traveled rural routes and unions remain unresolved. (Airwise.com, Aug. 4)
The Internal Revenue Service has decided not to refund FAA taxes to those folks who purchased tickets prior to and took flights during the shutdown, July 23 through Aug. 4 and no taxes will be due from people who bought tickets during this period. Many airline carriers adjusted their fares during the FAA shutdown to include the amount of the federal taxes but did not pass the savings on to ticket buyers. (USAToday.com, Aug. 9)
THE FULL SCOOP ON AIRLINE FEES
The Department of Transportation has proposed a new rule that would require airlines to report detailed information about the a-la-carte fees they charge to consumers. As existing fees rise and new fees are added the actual, total cost of an airline ticket is hard to determine. Also this source of revenue is not taxed by the Federal Government. (Travelmole.com, July 18)
