11 Jul 2014

House Members Should Insist on Proper Deliberation of This Highly Controversial H.R. 4156 Legislation

By Kevin Mitchell

Airlines Triple Down on H.R. 4156

A House of Cards Premised on A Big Lie

July 10, 2014, Washington, DC - Business Travel Coalition (BTC) today has learned that H.R. 4156, the Transparent Airfares Act of 2014, is on the short list in the U.S. House of Representatives for a Suspension Calendar vote prior to the August recess. Suspension of the rules is a procedure used to quickly pass non-controversial bills in the House. H.R. 4156 arguably represents one of the most controversial aviation bills in a generation. (See http://btc.travel.)

The bill was passed out of Committee on April 9, 2014 without any hearings, debate or opportunity for consumer or travel industry stakeholders (other than airlines) to inform Congress of their views and the flaws in this bill. This is not the harmonious naming of a Post Office - the type of bill the Suspension Calendar is used for - but rather, contentious legislation that would harm consumers by reversing a U.S. Department of Transportation (DOT) rule implemented in 2012 as a cure to misleading airline advertising. House Members should reject this Suspension Calendar scheme and insist on proper deliberation of this highly controversial legislation.

This week, in a scene right out of NetFlix's House of Cards, airlines tripled down on their Big Lie and the manipulation of Congress that H.R. 4156 is premised upon. From the trade group Airlines For America, "...consumers deserve to clearly know just how much they are paying in federally imposed taxes and fees every time they purchase a ticket." (See http://btcnews.co/W0pxMe.)

Likewise, from American Airlines' in-flight magazine, American Way, the carrier's CEO asserts, "I can assure you that at American Airlines, you will never be asked to finalize a purchase without knowing the full price of the ticket, including all federal taxes and fees. But with this legislation, you will be better informed to know exactly what you are paying for in advance..." (See http://btcnews.co/1rXoM3d.)

THE BIG LIE; THE TRUTH

"Airlines falsely claimed to Congress, and continue to double and triple down in the press, that the DOT advertising rule forces them to hide government taxes and fees. The opposite is true. Airlines are free to list these amounts in an advertisement or solicitation so long as they are less prominently displayed than the total airfare, stated BTC founder Kevin Mitchell. "Moreover, airlines can list all taxes and fees on ticket itineraries and further remind passengers of these costs when printing out boarding passes. They simply choose not to," added Mitchell.

Some find Frank Underwood's lies and manipulation in House of Cards highly entertaining. But when it comes to reality in Congress and consumer protections, at least one Member of Congress finds airlines' duplicity deeply disturbing and has the courage to stand up to them. U.S. Rep. Jerrold Nadler (D-NY), a House Transportation Committee member who voted (perhaps alone) against H.R. 4156 succinctly told The Associated Press in a May 8 article: "The bill is 'a gift to the airlines...' 'What you're going to see is $200 for the airfare, and then you're going to be shocked when it turns out to really be $250,' he said. 'It's misleading to the consumer. It's just dishonest.'"

At http://btc.travel find relevant foundational documents, analyses and industry statements representing all views on H.R. 4156 as well as press editorials and stories.

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About BTC
Founded in 1994, the mission of Business Travel Coalition is to interpret industry and government policies and practices and provide a platform to enable the managed travel community to influence issues of strategic importance to their organizations.

15 Feb 2013

AAUS Boards Approve Merger: Benefits Insufficient To Offset Consumer Harms

By Kevin Mitchell
American Airlines - US Airways Proposed Merger Problematic; Benefits insufficient to offset consumer harms

February 13, 2013, WASHINGTON, DC - Business Travel Coalition (BTC) today responded with concern regarding the news of board approvals of an eleven billion dollar proposal from American Airlines' parent AMR Corporation and US Airways Group Inc. to merge their third and fifth largest U.S. airlines respectively. The transaction would create the country's and world's largest carrier by passenger traffic and would require various approvals from the U.S. Departments of Justice (DOJ) and Transportation (DOT) as well the EC's DG COMP. If governmental analyses don't force a regulatory tarmac delay, then decisions could be expected in some four to six months.

"From a consumer standpoint - individual traveler or corporate travel department - there are few benefits to offset the negative impacts of this proposed merger that include reduced competition, higher fares and fees and diminished service to small and mid-size communities," stated BTC Chairman Kevin Mitchell. "To be clear, there is benefit in a financially viable air transportation system. However, previous mergers have already enabled seat capacity cuts, higher fares and billions of dollars in fees for ancillary services resulting in a financially strengthening industry. As such, consumer harms from this merger are indeed exacerbated, as there are no substantial countervailing consumer benefits," added Mitchell.

BTC has just published an Industry Analysis of the proposed merger at http://bit.ly/VfUnMK. The analysis includes the following section titles:

- Introduction

- Summary Analysis

- The Right Regulatory Review Construct

- Coordinated Effects A Big Problem

- The Problem Of Monopsony Power

- No Failing Firms Here

- The Diminishing Influence Of Low Cost Carriers

- A Need To Forensically Analyze Past Merger Projections And Promises

- Anti-Consumer Elephant In The Room

The American Antitrust Institute and BTC in the coming weeks will be updating their August 2012 White Paper on the proposed American Airlines - US Airways merger. This paper titled: "The Proposed Merger of US Airways and American Airlines: The Rush to Closed Airline Systems," can be found at http://bit.ly/YKbshf

BTC's 2008 testimony before the Senate Judiciary Committee regarding the Delta Air Lines - Northwest Airlines merger can be found at http://bit.ly/12yyuYP

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About BTC
Founded in 1994, the mission of Business Travel Coalition is to interpret industry and government policies and practices and provide a platform so that the managed travel community can influence issues of strategic importance to their organizations.
23 Sep 2009

Airline Passengers Conduct Their Own Hearing in Congress

By Kevin Mitchell

Momentum Accelerated Behind Initial 3-Hour Deplanement Standard

Senator Boxer and Representative Thompson Champion Passenger Rights

September 22, 2009, Washington, DC - FlyersRights.org and Business Travel Coalition (BTC) today conducted a Passenger Rights Stakeholder Hearing before a packed hearing room of airline passengers, travel professionals, Congressional staff and media in the Rayburn House Office Building. Experts, both for and against legislation to address a growing extended-tarmac-delay problem, were sharply questioned by aviation journalists and travel industry professionals . The clear outcome from the hearing is that legislation is urgently required to address a growing passenger health and safety problem that airlines are apparently unable or unwilling to fix themselves.

The hearing was sponsored by the Honorary Chairwomen Senator Barbara Boxer (D-CA) and Representative Mike Thompson (D-CA) who have championed a 3-hour national standard for providing passengers the option of deplaning, should a captain decide it is safe to do so. Their bills, S.213 and HR 674, were strongly endorsed by airline passengers, FlyersRights.org, BTC, other travel groups at the hearing.

PassengerRights.org Executive Director Kate Hanni testified , "The airline industry has been the voice of "NO" for too long. The system is broken and passengers have been paying a dear price with their health, lost productivity and missed family events. This hearing shone a bright light on the fallacious arguments put forward by those airlines that seek to continue stonewalling against reforms that will benefit passengers and all airline industry stakeholders."

"There is now a clear expectation that Congress will move to enact legislation to create a national standard beginning with the requirement that airlines provide passengers an option to deplane after 3 hours. Airlines will likely have several months to adjust operations before the law is effective," stated BTC Chairman Kevin Mitchell. "BTC further encourages Congress to phase-in a 2-hour standard 1 year after the initial 3-hour rule becomes effective. Congress should likewise make mandatory the U.S. Department of Transportation Tarmac Delay Task Force recommendations," added Mitchell. (BTC recently issued a report on passenger rights legislation .)

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