Estimates regulations will cost travel agency industry $58 million in 2015 alone.
ALEXANDRIA, VA – Last week, ASTA filed a petition with the Federal Aviation Administration (FAA) and the Pipeline and Hazardous Materials Safety Administration (PHMSA) to rescind regulations (49 CFR 175.25 b) effective Jan. 1, 2015 that will restrict a travel agent from issuing an airline ticket until he or she verbally provides the hazardous materials (“hazmat”) disclosure and the purchaser affirmatively indicates an understanding of the disclosure. Alternatively, ASTA asks the government to allow the notification be provided on the electronic invoice.
“These regulations, intended to bring the U.S. into harmony with the rest of the world by requiring hazmat notifications to be included with online transactions, don’t make sense for over-the-phone or in-person transactions and will impose a costly and redundant burden on travel agents and the airline ticketing process generally,” said Zane Kerby, ASTA’s President and CEO. “We look forward to working with DOT, our members and other aviation stakeholders to ensure that the ticketing process does not unnecessarily become more complex than it already is.”
“Many ticket purchases are made by persons other than the traveler, or are made by frequent travelers who are aware of the hazardous materials rules,” Kerby continued. “Repeating this federally-mandated disclosure, when it serves no real purpose, is wasteful. It is sufficient, we believe, to provide the disclosure and to obtain the traveler’s acknowledgement when the boarding entitlement document, such as the boarding pass, is requested by the traveler online or at an airport kiosk. If, however, the government feels that an additional layer of passenger notification is called for, ASTA’s alternative – disclosure through e-ticket confirmation – is a much better way to go.”
In 2011, FAA and PHMSA, sub-agencies of the Department of Transportation (DOT), issued a final regulation, effective Jan. 2013, that restrict “aircraft operators” from completing a ticket purchase, regardless of booking channel, until the purchaser affirmatively indicates that he/she understands the restrictions on hazardous materials in baggage. Because the regulation applies to all passengers, travel agents and their clients will be impacted when booking air travel. In October 2012, ASTA asked FAA/PHMSA to push back the Jan. 1, 2013 effective date, and FAA/PHMSA agreed. The effective date is now Jan. 1, 2015.
In its petition, ASTA argues that the government failed to provide, as is required by law, a small business economic impact analysis with its initial rulemaking. ASTA has calculated that the regulations will cost the travel agency industry, which is predominantly small business, over $58 million in initial training, programming, and disclosure and acknowledgement capture costs and $26 million per year in ongoing compliance costs.
As an alternate to this regulation, ASTA submitted that FAA/PHMSA replace the phone notice regulation with a disclosure requirement similar to the existing DOT regulation on baggage fee disclosure using e-ticket confirmations.
ASTA plans to work with Members of Congress, regulatory entities like the Small Business Administration’s Office of Advocacy and other policymakers to modify this rule, and will call for member grassroots engagement where appropriate.
Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.
She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.
