WASHINGTON AVIATION SUMMARY APRIL 2021 EDITION CONTENTS I. REGULATORY NEWS ................................................................................................ 1 II. AIRPORTS .................................................................................................................. 4 III. SECURITY AND DATA PRIVACY .............................................................................. 6 IV. TECHNOLOGY AND EQUIPMENT.............................................................................7 V. ENERGY AND ENVIRONMENT ..................................................................................8 VI. U.S. CONGRESS .......................................................................................................10 VII. BILATERAL AND STATE DEPARTMENT NEWS .....................................................13 VIII. EUROPE/AFRICA ..................................................................................................... 14 IX. ASIA/PACIFIC/MIDDLE EAST .................................................................................. 16 X. AMERICAS ...............................................................................................................1 8 For further information, including documents referenced, contact: Joanne W. Young Kirstein & Young PLLC 1750 K Street NW Suite 700 Washington, D.C. 20006 Telephone: (202) 331-3348 Fax: (202) 331-3933 Email: [email protected] http://www.yklaw.com The Kirstein & Young law firm specializes in representing U.S. and foreign airlines, airports, leasing companies, financial institutions and aviation-related companies before U.S. Government agencies, Congress, the courts and in commercial and financing matters. ©2021 Kirstein & Young PLLC. Washington Aviation Summary I. REGULATORY NEWS 1. “American Rescue Plan” Continues Payroll Support for Airlines. President Joe Biden signed the “American Rescue Plan” (ARP) into law, providing $15 billion to continue the Payroll Support Program (PSP) for airlines through September 30; the previous PSP was set to expire on March 31. “The relief is vital to have our employees on the job and ready to assist as our nation prepares to move forward from this crisis,” said Airlines for America (A4A), as eligible carriers swiftly withdrew furlough warnings. The $1.9 trillion COVID-19 relief package also contains $8 billion for airports, to cover costs of operations, personnel and cleaning, including a set-aside for rent relief and other costs of concessionaires primarily directed toward small businesses and minority-owned firms. ARP contains $3 billion for establishment of a temporary Aviation Manufacturing Payroll Support Program. 2. Administration Urged to Reopen International Travel. A coalition of 26 U.S. travel and aviation organizations called on the Biden Administration to develop a risk-based, data-driven roadmap to rescind inbound international travel restrictions by May 1, the date by which States will make vaccinations available to all American adults, according to President Biden’s recent directive. “To be clear, at this time, we do not support removal or easing of core public health protections, such as the universal mask mandate, inbound international testing requirement, physical distancing or other measures that have made travel safer and reduced transmission of the virus,” the letter states. “However, the data and science demonstrate that the right public health measures are now in place to effectively mitigate risk and allow for the safe removal of entry restrictions.” In 2020 international arrivals to the U.S. fell 62% from Mexico versus the previous year, 77% from Canada, and 81% from overseas markets, a $146 billion loss to the U.S. economy. 3. Willie Walsh to Lead IATA. Willie Walsh takes over as Director General and CEO of the International Air Transport Association (IATA) on April 1. He succeeds Alexandre de Juniac, who led IATA from September 2016 and previously was Chairman and CEO of Air France-KLM and Air France. Walsh was CEO of International Airlines Group (IAG) from its creation under his leadership until 2020, and CEO of British Airways and Aer Lingus where he began as a pilot. Walsh served on the IATA Board of Governors 2005 to 2018 and was Chair (2016-2017). In his final press briefing, de Juniac noted that there were 30,000 unique international routes between airports before the COVID-19 crisis and now Kirstein & Young PLLC / Attorneys at Law April 2021 — Page 1 Washington Aviation Summary there are 12,000. The average route was served by about 43 flights per month, compared to 20 now and not even daily. Passenger demand has dropped to 1998 levels, down 66% from pre-crisis levels and passenger revenue was at 1993 levels at end of 2020. de Juniac called for governments to continue relief measures, reduce costs and consider stimulus measures. “We will also need planning,” he said “We cannot restart this industry with the flip of a switch. It will require careful planning to take aircraft out of long-term storage, to ensure crew qualifications, to recall laid off employees, to reopen closed terminals and so on. We can only be ready to energize the recovery from day one if governments have a plan and share it with us.” . The IATA Annual General Meeting (AGM) was postponed from June until October 3-5. It will be in Boston and hosted by JetBlue. 4. IATA Travel Pass Trials Begin The IATA Travel Pass was successfully implemented in a trial on Singapore Airlines flights from Singapore to London Heathrow, with passengers using the app to create a secure digital version of their passport on their mobile device, input flight details to learn of travel restrictions and requirements, and receive verified test results and confirmation that they meet all travel requirements. “This real-life proof of concept should give all governments confidence that industry has a workable digital solution that will ease the pressure of incorporating health certificate checks into the travel process, including at borders,” said IATA, and it is an opportunity for us “to demonstrate that the solution works and to share the results with others as we build a robust and efficient system that will help the world get moving again.” Other airlines trialing the IATA Travel Pass include Ethiopian, Virgin Atlantic, Korean Air, THAI, Qatar, Air Serbia, ANA, Gulf Air and airBaltic. 5. United to Pay $49 Million to Resolve Fraud Charges. United Airlines agreed to pay over $49 million to resolve criminal charges and civil claims related to a fraud scheme perpetrated by former cargo division employees in connection with execution of contracts to deliver mail internationally on behalf of the U.S. Postal Service. United provided falsified parcel delivery information over a period of years, “accepting millions of dollars of payments to which the company was not entitled,” said the U.S. Department of Justice. 6. FAA Extends Zero-Tolerance Policy for Unruly Passengers. The Federal Aviation Administration (FAA) extended its unruly passenger zero-tolerance policy, which mandates strong enforcement action against any passenger who disrupts or threatens the safety of a flight, with penalties ranging from fines to jail time. The initial order went into force in January and Kirstein & Young PLLC / Attorneys at Law April 2021 — Page 2 Washington Aviation Summary was due to expire at the end of March. FAA said airlines reported more than 500 incidents to the agency since late December, mostly involving passengers refusing to wear masks. “The number of cases we’re seeing is still far too high, and it tells us urgent action continues to be required,” said FAA Administrator Steve Dickson. FAA proposed civil penalties of $20,000 and $12,250 against two passengers for allegedly interfering with, and in one case assaulting, flight attendants who instructed them to wear facemasks and obey various federal regulations. And in early March, a passenger on an Alaska Airlines flight refused to wear a mask and urinated in his seat area. The FBI arrested him upon landing and he was released on $10,000 bond. 7. Laser Strikes against Planes Increase. Laser strikes against pilots increased in 2020 even with the overall decrease in U.S. air traffic operations, reported FAA. In 2020, pilots reported 6,852 laser strikes to FAA, compared to 6,136 in 2019, the highest number reported since 2016. Many high-powered lasers can incapacitate pilots. FAA works closely with federal, state and local law enforcement agencies to pursue civil and criminal penalties against people who purposely aim a laser at an aircraft and can impose civil penalties of up to $11,000 per violation. In Europe, a laser pointed at the cockpit of a Virgin Atlantic Boeing 787 departing London Heathrow hit the captain, leaving him with impaired sight and causing the crew, enroute to Tel Aviv, to return to London. The flight was postponed to the following day. There are around two reported laser attacks on aircraft each day in UK airspace, with CAA receiving 775 reports in 2018, says the British Air Line Pilots Association. The act of shining a laser at an aircraft is considered endangerment and comes with up to a five-year prison sentence, an unlimited fine, or both. 8. FAA Fines Boeing $6.6 Million. FAA assessed $5.4 million in deferred civil penalties against Boeing for failing to meet performance obligations under a 2015 settlement agreement. The manufacturer agreed to also pay $1.21 million to settle two pending FAA enforcement cases; one alleged the company implemented an improper