NBTA Government Affairs

1. NBTA Government Affairs Chicago BTA Education Day June 5, 2009 C. Stewart Verdery, Monument Policy Group & NBTA Government Affairs Consultant

2. Overview • NBTA Government Affairs Priorities • Travel Regulation • FAA Reauthorization • Next Generation Air Transportation System • Other Issues Worth Watching • Questions and Answers

3. Airline Performance & Aviation Congestion • NBTA believes Congress and the Administration should resist micromanagement of airline service, but require enhanced reporting so consumers can accurately judge airline performance. • NBTA filed comments with DOT in March regarding passenger protection issues • Final Rule from DOT expected shortly and could include recommendations from the Tarmac Delays Task Force • DOT dropped their proposal for slot auctions at New York area airports

4. Domestic Registered Traveler (RT) • RT offered at 21 airports – enrollment over 250,000 • TSA Authorization Bill in the House of Representatives • NBTA supports enhancement of RT’s risk management and threat assessment protocols • Initial views of RT by the Obama Administration have been positive • http://www.tsa.dhs.gov/approach/rt/index.shtm

5. Terrorist Watch Lists and Redress • NBTA supports Congressional passage of redress legislation & the implementation of Secure Flight • FAST Redress Act • Passed the House in February 2009 • Senate has yet to introduce their version of the bill • Secure Flight • Will require full legal name, gender, and date of birth from carriers who will in turn require for reservations • Should decrease watch list false positives

6. Traveler Taxes • Rental Car taxes • NBTA has been successful in fending off several proposed increases at the state level • Federal legislation to end discriminatory rental car taxes failed to gain traction • Non-Refundable Airline Ticket Tax Refunds • Government Accountability Office study request • GAO study results will be used to urge Congressional Action

7. Visa Waiver Program and ESTA • 8 countries added in 2008 • Further expansion requires US-VISIT Exit • Exit pilots began on May 28 • TSA at Atlanta • CBP at Detroit • Electronic System for Travel Authorization (ESTA) • Requires VWP travelers to apply online before traveling to US • ESTA is good for 2 years after approval • Requirement in place as of January 13, 2009 • Strict enforcement delayed • NBTA supports enforcement flexibility and airport enrollment options • www.cbp.gov/esta

8. International Registered Traveler • NBTA supported the creation and funding of the Global Entry Program • Customs and Border Protection (CBP) mobile enrollment first used at NBTA Committee Summit • Global Entry currently at 7 airports • Atlanta, Chicago, JFK, LAX, Houston, Miami, Washington Dulles • CBP is waiting for OMB approval before additional expansion • Approved applicants skip immigration processing • www.globalentry.gov • In April, CBP launched the first bilateral agreement with a foreign government - the Netherlands

9. WHTI and Model Ports • Western Hemisphere Travel Initiative • On June 1, 2009 WHTI compliant documents became a requirement for land and sea entry • Acceptable forms of documentation include a Passport, Trusted Traveler Card (NEXUS, SENTRI, or FAST/EXPRES), U.S. Passport Card, or Enhanced Driver’s License. • Strict enforcement not yet being practiced • State Department: http://travel.state.gov/travel/cbpmc/cbpmc_2223.html • Model Ports of Entry • Improve entry experience of U.S. and international travelers • Implemented at top 20 international arrival airports in U.S. • $40 million for the program in FY09 • $25 million for 200 additional CBP officers, $6.5 million for CBP overtime at Model Ports locations, and $8.5 million for Model Ports equipment and services.

10. 2009 Agenda – New Issues • Energy and Climate Change • NBTA supports comprehensive energy legislation to increase energy supplies, conservation, and tax incentives • Airlines with new fleets very worried about difficulty of further improvements • Transportation Infrastructure • Investment in high speed rail, intermodal connections, and compensation for security costs • Stimulus contained billions for infrastructure

11. Travel Regulation • Backlash against Executive Compensation and spending by companies receiving assistance from Trouble Assets Relief Program (TARP) • Senator Christopher Dodd (D-CT) inserted provision in Stimulus bill • Treasury Department to define “excessive” and “luxury” expenditures • The timing for the required rule-making is unclear • The travel industry developed best practices guidelines for companies • Urging Treasury and Congress to endorse

12. Travel Regulation II • Senators Kerry and Feinstein and Reps. Cummings and Maloney have also introduced legislation • Over 8,000 letters sent to the Administration and Congress by NBTA members: • http://capwiz.com/nbta/issues/alert/?alertid=12773376 • U.S. Travel Association, NBTA, and other travel organization launched “Meetings Mean Business” campaign on March 4 • www.meetingsmeanbusiness.com

13. Federal Aviation Administration Reauthorization • House passed FAA Reauthorization on May 20 • Provides $10.1 for development and implementation of the Next Generation Air Transportation System (NextGen) through 2010 • Bans cell phone voice communication on commercial aircraft • Increases maximum Passenger Facility Charges (PFC) from $4.50 to $7.00 (NBTA did not support this provision) • NBTA pushed for NextGen money in the Stimulus • Randy Babbitt confirmed as FAA Administrator on May 21

14. Benefits of NextGen • Stimulus to overall economy • Enables job creation, global commerce • Facilitates growth of travel, tourism, manufacturing and other sectors • Creates opportunity to export new technologies • Preserves U.S. leadership in aviation safety, environmental performance and technology • Improved customer service via reduced flight delays, greater system capacity • State-of-the-art space-based ATC system could potentially triple capacity for flights • Reduced delays mean significant savings 14

15. Benefits of NextGen II • Improved environmental performance through more efficient aircraft routing and spacing, reducing fuel burn and GHG emissions by up to 12 percent • Even a 6 percent fleet wide reduction in fuel burn results in fuel savings of 1.16 billion gallons and emissions savings of nearly 11 million metric tons or 24 billion pounds of CO2 • Improved financial picture for airlines/employees via greater reliability of operations, fewer delays, improved travel/shipping times and less fuel burn • Able to retain and create jobs • Able to modernize fleets to further improve emissions reductions • Able to compete more effectively against non-U.S. competitors

16. Inefficiencies of ATC can be addressed through NextGen Additional burn due to reroute1493 lbs Optimal Route Burn5883 lbs. Boston, MA Actual Route flown Optimal Route Actual Route Burn7376 lbs. Large Air Carrier: DCA to BOS, December 2008 Washington, D.C. 16

17. Why We Need NextGen Now • Our nation’s antiquated air traffic control (ATC) system is woefully inadequate and imposes a significant drag on the nation’s economy • Due to system deficiencies, drivers using GPS in their cars have more capabilities than most aircraft operating in today’s airspace • The time and opportunity to accelerate transformation of the system is now • The acceleration of NextGen will create jobs, reduce delays and reduce environmental impacts 17

18. Other Issues to Watch • REAL ID and ID’s for Travel • TSA unionization • Travel Promotion Act • Olympics bid

19. Questions or Comments? C. Stewart Verdery, Jr. Partner and Founder, Monument Policy Group and NBTA Government Affairs Consultant stewart@monumentpolicy.com www.monumentpolicy.com (202) 719-9999