• President Clinton signed the Department of Transportation Appropriations bill (H.R. 4475) on October 23, 2000 which earmarked $1 Million to fund The National Commission To Ensure Consumer Information and Choice in the Airline Industry. ASTA’s legislation, the Improved Consumer Access to Travel Information (ICATTI), establishing the commission was included in H.R. 1000, the Wendell H. Ford Aviation Investment and Reform Act for the 21^st Century (AIR 21) which was enacted into law on April 5, 2000. The Commission will study the role of travel agents in the distribution of air travel and whether the airlines are creating barriers to block consumer access to information and choice. This action resulted from the combined efforts of ASTA, the Coalition for Travel Industry Parity (CTIP) and the National Tour Association (NTA).

• Secretary of Transportation, Rodney E. Slater, appointed Paul Ruden, ASTA’s senior vice president of legal and industry affairs, to the U.S. Department of Transportation’s Air Carrier On-Time Reporting Advisory Committee on October 20, 2000.

• ASTA responds on September 7, 2000 to Department of Transportation’s invitation to submit "best practices" that could contribute to reducing or avoiding consumer dissatisfaction with air transportation services. Among suggestions submitted were the elements contained in ASTA’s Air Travelers Bill of Rights as action items the airlines could implement immediately.

• On August 24, 2000, ASTA was among the travel industry representatives who met with the Transportation Secretary, Rodney Slater, and Federal Aviation Administrator, Jane Garvey, to discuss possible measures to alleviate delays and cancellations and to address the impact of the delay problem on consumers. ASTA was one of three organizations designated by the Secretary to open the dialogue by discussing the issues from the standpoint of the consumer.

• ASTA testified before the full Senate Commerce Committee on July 20, 2000 regarding travel distribution and Internet sales of airline tickets, including Orbitz, the proposed airline joint Web-site. ASTA argued that this site could monopolize retail travel services on the Internet and, ultimately, in all markets.

• Senator Reid (D-NV) introduced S. 2891, the Air Travelers Fair Treatment Act of 2000 on July 19, 2000, which is the companion bill to H.R. 2200, the Omnibus Airline Passenger Fair Treatment Act. Ongoing grassroots efforts continue to seek additional co-sponsors for ASTA’s flagship legislation. H.R. 2200 had 30 co-sponsors while S. 2891 had three. Provisions in the bills call for: consumer access to all airline fares regardless of technology used to purchase air transportation; airlines to provide consumers with accurate and timely explanation for fight delays, cancellations or diversion from ticketed itinerary; consumers may use any part of a purchased ticket; access to state laws for consumers and agents to resolve commercial disputes with the airlines; and prevents airlines from terminating a ticket agent without written notice and good cause.

• On June 28, 2000, DOT Inspector General, Ken Mead, presented to the Senate Commerce Committee an interim status report on the airline industry’s (customer service) commitment plans and the on-going investigation into consumer access to information on airline ticket prices and airline practices of overbooking flights. Mr. Mead indicated the airlines have not lived up to all the promises in their voluntary programs. The IG’s investigation also includes the extent to which barriers exist to consumer access to comparative price and service information from independent sources on the purchase of air transportation. A final report is due December 31, 2000. ASTA submitted a statement on Airline Customer Services for the Senate Commerce Committee hearing record held on June 28.

• Mr. Ed Perkins, ASTA’s Consumer Advocate, testified before the House Transportation and Infrastructure Committee opposing the proposed United Airlines and US Airways merger on June 15, 2000. Similar statements were submitted to the House Judiciary Committee, Senate Commerce Committee and the Senate Judiciary Subcommittee on Antitrust, Business Rights and Competition where June hearings were also held on the merger.

• The Senate Judiciary Subcommittee on Antitrust, Business Rights and Competition held a hearing on Airline Competition, May 2, 2000. ASTA submitted for the hearing record its February 16, 2000 complaint to the Department of Justice on the proposed operation of a joint airline web site.

• ASTA filed extensive comments with the Federal Trade Commission on March 31, 2000 urging that the FTC’s regulations implementing the Gramm Leach Bliley Act exclude most travel agency activities. That Act requires businesses to disclose their policies regarding the use of customer personal and financial information. Responsive to ASTA’s filing, on May 17, 2000 the FTC exempted most travel agency transactions, including travelers checks and travel insurance policies, from disclosure requirements imposed by the G-B-L Act.

• The U.S. Department of Justice announced its probe into the joint airline Web-site on May 17, 2000. ASTA filed its request on February 16, 2000 with the DOJ, seeking an investigation and enforcement action with respect to the stated plan of the major United States and foreign airlines to create a joint Internet Web-site, known as Orbitz.

• After decades of lobbying Congress and the U.S. Department of Treasury, ASTA scored a victory when the Internal Revenue Service released in February 2000 a final rule providing standards and directions for taxing the commercial activities of nonprofit travel operations. The rule includes examples to distinguish when a tour is for education rather than vacation.

• AIR 21 also calls for an investigation by the Comptroller General on back-to-back and hidden city ticketing. The GAO’s project team met with ASTA regarding this investigation on July 13, 2000. A final report is due in Congress early next year.

ASTA 2000 Agenda
ASTA’s 2000 legislative agenda pursued House and Senate hearings on travel agent issues; passage of S. 2891/H.R. 2200 (travelers’ bill of rights); and introduction of additional legislation to end antitrust immunity for the airline industry. Remember: Without a Travel Agent, You’re On Your Own.