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ACTE: Latest DHS rulemaking shifts unfair cost to airlines
Friday, April 25, 2008

A proposed rulemaking by the U.S. Department of Homeland Security (DHS) – calling for biometrics exit procedures at the nation's airports – will pose a substantial financial hardship on the airline industry, according to the Association of Corporate Travel Executives (ACTE). While an exact dollar figure for the implementation of the proposed rulemaking was unavailable, DHS officials estimated the cost of collecting and transmitting the biometric data would be two or three dollars per passenger, based on 100 million qualifying passengers, or $300 million per year.

"It is unreasonable to expect the airlines to shoulder this financial burden, especially at a time when they are facing staggering fuel increases, maintenance costs, and other rising expenses," Susan Gurley, ACTE Global Executive Director, said. "The price of this rulemaking would be passed directly onto the traveller. It is equally unreasonable to drop a $300 million travel cost increase in the form of security surcharges or additional ticket taxes onto business travellers, when companies are already struggling to sustain current travel levels."

In a special conference call on Tuesday, 22 April 2008, DHS authorities explained how the airlines are best positioned to collect this data in their daily processing of departing passengers. Yet, no apparent provision has been made in the current DHS budget to compensate the carriers for the extra steps, software, hardware, and training that will be required to comply with the new rulemaking. Furthermore, it was stated that the DHS does have the authority to levy fines against airlines that do not keep and transmit accurate exit biometric data.

"While the airlines may be best positioned to collect and transmit this data, there is nothing that says they should be expected to do it for free," said Gurley. "The protection afforded by this rulemaking is national in scope, and not confined to the travelling public. As a consequence, its cost should not be carried either by the airlines or by the travelling public. This is a cost that should be paid by a special appropriation from Congress."

DHS authorities emphasized that there has never been an exit authority in place in the United States, as it is in other countries. Consequently, they do not believe the federal government is abrogating a security responsibility to the carriers. Yet, in leaving the design and implementation to various carriers, there is no guarantee that the process will be the same at every airport – or even at different locations within the same airport.

"An identical exit system, with identical signage, needs to be in place at every airport implementing the DHS's proposed exit system, to minimize delays or confusion experienced by 100 million travelers attempting to leave the country," said Gurley.

ACTE plans to address both the funding and the standardization issues in commentary on the proposed rulemaking.

Vicky Karantzavelou - Friday, April 25, 2008
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The imminent privatization of Olympic Airlines is expected to change the fate of this debt-laden airline. What do you think the new owner should do in regard to the brand name of the Greek national flag carrier?.

Keep “Olympic Airlines” as the name of the company as it remains a strong brand.

The company should keep “Olympic” as an element of its name but refresh the brand (e.g. “New Olympic Airlines”).

The airline should drop “Olympic” from its name. This brand has lost its value and isn’t relevant to the market anymore.

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