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Lott: Reauthorization Will Hold Environmental Streamline Language

 

May 6, 2003

 

Senate Commerce Aviation Subcommittee Chair Trent Lott (DMiss.) yesterday told The DAILY that the FAA reauthorization bill will contain some “significant environmental language” to streamline the airport expansion process. AIR-V should emerge from conference with environmental streamlining provisions and “hopefully the President will sign it,” Lott said.  AIR-V was scheduled to go to the Senate floor this week, and Lott said he had hoped to move it through aggressively to “keep it from being caught up on the traffic jam at the end of the summer and in September.”  The bill moved quickly through markup last week but may not make it to the floor until the summer because an amendment approved in markup that adds slots to Washington National is likely to cause considerable and lengthy debate.

 

“Leadership wanted it done in two to three hours,” Lott said, noting it’s likely to take days if the two sides cannot come to a time agreement. Commerce had hoped to slip AIR-V in before  the energy bill, but it’s unlikely to be taken up that quickly.  Lott said he would try to push the bill through as soon as possible but would be glad to see it taken up by July, noting he was confident the two chambers will have a good conference. “The differences are not insurmountable,” he said. “We will go to the floor and try to work out a deal on the [DCA] perimeter rule,” which Lott called “insane when we did it. We will have to revisit,” the issue, he said, noting it’s the biggest impediment to an agreement on AIR-V. Provisions on Essential Air Service (EAS) and the small-community air service program went into the AIR-V manager’s amendment with remarkably little contention, Lott said, noting he was “shocked” the committee reached agreement because “usually that is the part of the bill that messes everything up.”  Lott also discussed the recent scandals surrounding airline executive perks and pensions and the problems facing employee pension liabilities. While he said he does not favor Congress telling the airlines how to do business, he said he wants answers on how the boards of directors let large executive packages slip through while airlines are asking for employee concessions.  He added that the employee pension liability situation is becoming “a huge problem” that Congress will have to address once it has taken care of FAA reauthorization. 

 

Lott said the behavior of the airlines, which he contends is improving, was a huge public relations disaster, especially since revelations of executive bonuses and secured pension trust funds for executives at American occurred even as Congress was putting an airline financial aid provision into the war supplemental.  “That is why the emergency bill had limits,” he

said of language that capped executive salaries and bonuses for airlines seeking federal assistance. He said the “timing was indefensible.”  Asked if he would be supportive should the airlines come back looking for more financial help from Congress, Lott said he was an advocate of the industry, “but I’m not a lackey.”  He said that after all the help they’ve received, a year from now “they should be seeing clear skies and blue skies.”  Asked about US Airways rejecting its airport lease at Pittsburgh claiming the hub was too expensive and uncompetitive (DAILY, May 2), Lott said, “Airlines are looking to save money” and airports have acted more responsibly than airlines.

 

Lott said AIR-V would also stop FAA from taking another $500 million from the Airport Improvement Program, noting Congress does not want to “short-change AIP.”  Lott said, “Bad management decisions over the last few years,” high fuel prices and the Iraq war have all hurt the airline industry, but he sees the industry turning around. Management has begun to make better decisions, he said, workers have made concessions and fuel prices are dropping and the industry is coming to terms with changes in flying habits of the public.  But the problem of labor contract negotiations remains, although Commerce Chair Sen. John McCain (R-Ariz.) has temporarily shelved his bill to overhaul the way unions and management negotiate contracts.  Lott said unions were “preparing to make this a cause to celebrate” and Congress is “dealing with about as many problems as we can deal with right now.” -DM

 

Source: Aviation Daily, May 6, 2003

 

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