WASHINGTON AVIATION SUMMARY November 2014 EDITION CONTENTS I. REGULATORY NEWS .............................................................................................. 1 II. AIRPORTS ................................................................................................................ 4 III. SECURITY AND DATA PRIVACY ……………………..................................................6 IV. E-COMMERCE AND TECHNOLOGY ....................................................................... 8 V. ENERGY AND ENVIRONMENT .............................................................................. 10 VI. U.S. CONGRESS .................................................................................................... 12 VII. BILATERAL AND STATE DEPARTMENT NEWS ................................................... 14 VIII. EUROPE/AFRICA ................................................................................................... 15 IX. ASIA/PACIFIC/MIDDLE EAST ................................................................................ 18 X. AMERICAS ............................................................................................................. 20 For further information, including documents referenced, contact: Joanne W. Young Kirstein & Young PLLC 1750 K Street NW Suite 200 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. ©2013 Kirstein & Young PLLC. Washington Aviation Summary I. REGULATORY NEWS 1. U.S. Limits Entry Points for Passengers From Ebola-Affected Nations. The first person to die of Ebola Virus Disease (EVD) in the United States was a Liberian, Thomas Eric Duncan, who had traveled on United Airlines flights from Brussels to Dallas via Washington Dulles. As health authorities maintained, he was not contagious during that period. Upon learning that a nurse who had treated Duncan flew on Frontier and later tested positive for EVD, the airline placed crew on paid leave for 21 days “out of an abundance of caution” and alerted passengers; that nurse and a co-worker have since recovered. The Department of Homeland Security designated New York Kennedy, Newark, Washington Dulles, Chicago O'Hare and Atlanta as the only air gateways for travelers from West African countries of Liberia, Sierra Leone and Guinea, and initiated EVD screening. Travelers from those countries with flights to other airports must rebook flights to make entry through a listed airport. There are no direct commercial flights to any U.S. airport from those countries, but travelers arrive via foreign hubs. A healthcare worker returned to the U.S. from Guinea through Kennedy and received enhanced screening, but did not have fever or other symptoms; he later tested positive for EVD. The Centers for Disease Control and Prevention (CDC) then designated six states (New York, Pennsylvania, Maryland, Virginia, New Jersey and Georgia) where travelers “without febrile illness or symptoms consistent with Ebola will be followed up daily by state and local health departments for 21 days from date of departure from West Africa.” . CDC provided guidance to airlines and others for evaluating risk of exposure of persons coming from countries affected by EVD. CDC also issued guidance for airline crews, cleaners and cargo personnel regarding protective clothing, cleaning and disinfectant products and other precautions. CDC said “packages or luggage should not pose a risk. Ebola virus is spread through direct contact with blood or body fluids from an infected person. Don’t handle packages visibly dirty from blood or body fluids.” . As of October 29, CDC reported 7,606 laboratory-confirmed EVD cases in Liberia, Sierra Leone and Guinea with 4,910 deaths, and four in the U.S. with one death. 2. IATA: Passenger Numbers To Reach 7.3 Billion by 2034. The International Air Transport Association (IATA) released its first 20-year passenger growth forecast, projecting that passenger numbers could climb an average 4.1% annually to reach 7.3 billion by 2034, compared to 3.3 billion this year. Among report highlights, the United States will remain the largest market until around 2030, when China will overtake it. In 2034, flights to, from Kirstein & Young PLLC / Attorneys at Law November 2014 — Page 1 Washington Aviation Summary and within China will account for 1.3 billion passengers, 856 million more than 2014, with 5.5% average annual growth rate. Traffic to, from and within the U.S. is expected to grow at an average annual growth rate of 3.2%, with 1.2 billion passengers by 2034 (559 million more than 2014). India will overtake the UK to become the third largest market by 2031. Japan will slip from fourth to ninth place by 2033. “The first century of air travel has seen about 65 billion passengers take to the sky,” said IATA Director General and CEO Tony Tyler. “The next 65 billion will fly in just the next 20 years.” 3. Air Traffic Service Restored at Chicago Center. The Federal Aviation Administration (FAA) restored all critical systems and equipment at the Chicago En Route Center in Aurora, IL, which suffered significant damage from a September 26 fire that an employee deliberately set. During the outage, high traffic volumes at Midway and O'Hare were maintained, though initially thousands of flights were cancelled or delayed. FAA is reviewing contingency plans and security protocols for its major facilities. At the request of members of Congress, the Department of Transportation (DOT) Inspector General will conduct an audit of contingency plans and security protocols at Chicago air traffic control facilities, where, “since May 2014, two serious incidents involving a fire resulted in delays and cancellations of hundreds of flights at the area’s airports.” The IG will assess whether FAA has developed and implemented a business continuity plan for Chicago air traffic control facilities that provides for adequate levels of redundancy and resiliency; and evaluate whether security measures in place are maintained and sufficient to mitigate potential risks to the air traffic control system. 4. American, Hawaiian Request Delta’s Tokyo Haneda Frequency. After Delta announced it is reducing Haneda service for the winter season, American told DOT in a filing that it “vigorously opposes any use of these valuable Haneda rights on a seasonal basis,” and requested a reallocation of the frequency for its own daily year-round Boeing 777 service from Los Angeles, beginning January 15. Hawaiian also asked for the frequency. Delta responded in its filing that it complies with DOT requirements. 5. FAA, Industry Announce Plan To Accelerate NextGen. Benefits of key NextGen initiatives will be accelerated over the next three years, according to a plan FAA and the NextGen Advisory Committee submitted to Congress. FAA will institute new procedures through use of Multiple Runway Operations at 36 airports to increase efficiency and reduce flight delays. Satellite-based Performance Based Navigation will be deployed in Northern California, Atlanta and Charlotte metropolitan areas to provide Kirstein & Young PLLC / Attorneys at Law November 2014 — Page 2 Washington Aviation Summary more direct flight paths, improved arrival rates, enhanced controller productivity, increased safety due to repeatable and predictable flight paths, fuel savings and reduced environmental impact. Increased Surface Operation data sharing will raise predictability and provide actionable and measurable surface efficiency improvements at airports. FAA is accelerating work on Data Communications services, which upgrades communication between pilots, air traffic controllers and airline operations centers from voice to digital. Industry stakeholders are responsible for ensuring pilot awareness of new runway and airspace procedures, equipping aircraft with DataComm technology, collaborating with FAA on performance based navigation airspace redesign, and data sharing. In September, House Aviation Subcommittee Chairman Frank LoBiondo (R-NJ) and Ranking Member Rick Larsen (D-WA) asked DOT Secretary Anthony Foxx to meet an October 18 deadline for the plan. 6. DOT Air Travel Consumer Report for August. Based on data filed by largest U.S. airlines. Aug. July Full Year ‘14 / ‘13 ‘14 2013 2012 2011 2010 2009 On-time arrivals % 77.7 / 78.8 75.6 78.34 81.85 79.6 79.8 79.5 Cancellations % 1.2 / 1.0 1.6 1.51 1.29 1.91 1.76 1.39 Mishandled baggage* 3.69 / 3.12 3.55 3.22 3.09 3.35 3.51 3.91 Consumer complaints: Airline service 1,602 / 1,314 1,653 13,168 15,338 11,546 10,988 8,821 Disability-related 83 / 84 71 679 741 628 572 519 Discrimination** 7 / 5 7 79 99 128 143 131 Note: In August, airlines reported one tarmac delay of more than three hours on a domestic flight and none of more than four hours on an international flight. * Reports per 1,000 passengers. **e.g., race, religion, national origin or sex. Kirstein & Young PLLC / Attorneys at Law November 2014 — Page 3 Washington Aviation Summary II. AIRPORTS 1. “The Wright Amendment Is Now History.” As a Southwest flight departed Dallas Love Field for Denver on the morning of October 13, CEO Gary Kelly exclaimed, “The Wright Amendment is now history.” The 1980 federal regulation restricted long-haul flights from Love to protect Dallas/Fort Worth Airport,