Subcommittee On Aviation Committee On Commerce, Science, And Transportation:

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Subcommittee On Aviation Committee On Commerce, Science, And Transportation:

Senate Committee Hearing On Aviation Security

By: Barbara Jackson

March 6 , 2003

February 5, 2003

This was the first Aviation Sub-Committee hearing of the year.

Senator McCain stated in his opening comments that the state of aviation was of great concern. “It’s in bad shape.” He added with regard to security that Americans are finding that getting through the airport is time expensive, but the traveling public is maintaining patience.

In four weeks the TSA will become part of Homeland Security and be removed from the Department of transportation. There is a great concern by the committee with regard to the ability of the TSA to stay “plugged in” to threat information. There is a concern that there may be an oversight vacuum with the replacement of Ken Mead.

There were two panels presenting testimony.

PANEL ONE: Ken Mead, Inspector General of the Department of Transportation, Admiral James M Loy, Under Secretary of Transportation for Security:

Mr. Mead began testimony for Panel One. Before September 11, 2001 there were approximately 28,000 screeners at our Nation’s airports with an annual security cost for the airline industry of about $1 billion. Today TSA employs nearly 62,000 screeners with capital and operating costs exceeding $5.8 billion. TSA requested $5.3 billion for FY 2003, and the Department of Homeland Security, the division within which the TSA will reside in March 2003 requested $4.8 billion for aviation security in FY 2004. This is projected against the passenger security fee of about $1.7 billion along with yearly contributions of $300 million from the airlines. The difference is proposed to be pulled from the General Fund, which is already strained.

Mead identified areas that appeared to be wasteful with abusive spending practices. He pointed to three different levels where savings could be realized:

Using centralized administrative services
Consolidating the use of airport space for functions like office space, break rooms, training facilities, and holding cells with other organizations that are merging into DHS
Use of law enforcement personnel, more specifically the Air Marshals. Before using these enforcement personnel for duties within the airport, TSA needs to consider the budgetary and staffing implications. It is important that the TSA not extend itself beyond the basic views of the Act’s requirements.

A major issue to be funded for the next phase is the Explosive Detection Systems (EDS). These are currently located in the lobby areas of many airports and must be relocated to the baggage areas. This will require major facility modifications and expense. The burden of this cost needs to be assigned and it is necessary that careful consideration be given before adding additional fees or taxes for air travel. Consumers already pay a significant amount in aviation taxes and fees, currently amounting to 26% of their ticket price. Adding additional costs to the traveling public jeopardizes an already unstable financial status for the airline industry.

Cargo will create an entire new list of problems. The President is requesting a total of $30 Million for an air cargo security pilot program for FY2004, including the design and development of a random, risk-weighted freight screening process and the development of a pre-screened “known” shipper program. Issues to consider for legislation:

We could screen cargo but it is not realistic developmentally or financially.
We want to get the mail back on the airplanes. We could use canine search teams, which seem to be successful.
We need to get more confidence in the program of “Known Shipper”. The deliverer must be familiar to be called a “Known Shipper.” Databases need to be developed.

There needs to be a level playing field between the airline carriers and cargo carriers.

For the 10 years prior to 2001 about 1.5% of AIP funds were used for security. In 2002 17% of AIP funds were used on security-related projects. If this level of AIP funds is committed to security expenditures the trade off will be in less money for airport improvement projects. Mead believes the most likely option for meeting TSA’s financial requirements will come from the General Fund. Congress will ultimately have to make a decision about how to pay for these costs and the proper mix between airlines, passengers, and the General Fund.

Senator Lott stated that the AIP funds cannot continue to be used for additional security funding. There is a need to assess the cost of the program to arm the pilots. Congress has authorized $500million for replacement of the cockpit doors. The FAA has provided $100 million in repayment to the carriers but the airlines cost to date has been $200 million. The FAA needs to pay the entire bill. Deadline for the completion of the program is April 2003. “We ordered this and we need to pay for it,” stated Senator Lott.

Loy stated that currently there are 62,000 TSA employees. By the end of FY2003 there will be 54,000 and by the end of FY 2004 there will be 48,000. By FY2005 the FSD needs to live within their given budget.

Senator McCain and Senator Lott expressed concern that this committee needs to determine how to pay the shortfall in the TSA expenditures.

PANEL TWO: James C May, Air Transport Association of America, Inc., Charles Barclay, The American Association of Airport Executives, Edward Bolen, General Aviation Manufacturers Association

James C. May, ATA states that the capacity of the airline industry continues to substantially exceed demand. This eliminates the airlines’ ability to pass the national security costs on to the consumer, which means these costs come off the carriers’ bottom line. The government can help the airlines recover from their financial hole by not adding unfunded security mandates and additional security related expenses to the airlines’ expenses.

Edward Bolen of the General Aviation Manufacturing Association testified that a security measure required by the ATSA act stating that all aliens seeking flight training in aircraft weighing 12,500 lbs or more are required to undergo a Department of Justice background check. Fifteen months later, the DOJ has failed to complete even 1 check. In the same amount of time the TSA went from non-existence to a full functioning entity with 62,000 trained employees.

Charles Barclay of the AAAE states time and money could have been saved had the TSA agreed to utilize airport staff knowledge and expertise. The decision to ignore this resource cost critical time and millions of dollars. The TSA needs to use the airport operators as a partner.

The TSA needs to recognize the public nature of airports and allow them to develop plans that best serve local circumstances.

Other areas of concern that add additional financial burdens on airports:

Necessary parking changes
Use of space by TSA outside of screening points
Use of local law enforcement personnel

It was stated that security is a filter not a guarantee. The effort is to get it right everyday. Terrorists only need one day, one time.