Congressional Record, Volume 144 Issue 129 (Thursday, September 24, 1998)

[Congressional Record Volume 144, Number 129 (Thursday, September 24, 1998)]
[Senate]
[Pages S10886-S10889]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

WENDELL H. FORD NATIONAL AIR TRANSPORTATION SYSTEM IMPROVEMENT ACT OF
1998

The Senate continued with the consideration of the bill.

Amendment No. 3631

(Purpose: To express the sense of the Senate that the Secretary of
Transportation should ensure the enforcement of the rights of the
United States under the air service agreement between the United States
and the United Kingdom known as the ``Bermuda II Agreement'')

Mr. McCAIN. Mr. President, I have an amendment at the desk for Mr.
Faircloth, Mr. Hollings and Mr. Helms.
The PRESIDING OFFICER. The clerk will report.
The legislative clerk read as follows:

The Senator from Arizona (Mr. McCain), for Mr. Faircloth,
for himself, Mr. Hollings, and Mr. Helms, proposes an
amendment numbered 3631.

Mr. McCAIN. Mr. President, I ask unanimous consent that reading of
the amendment be dispensed with.
The PRESIDING OFFICER. Without objection, it is so ordered.
(The text of the amendment is printed in today's Record under
``Amendments Submitted.'')
Mr. FAIRCLOTH. Mr. President, this Sense of the Senate resolution
puts the Senate on record about a transportation issue in the largest
city in my State.
The failure of this Administration to stand up for American carriers
under our air services agreements with foreign governments is a serious
issue. The unwillingness of this Administration to stand up for
American interests undercuts our international position in critical
negotiations and promotes intransigence amongst other parties to these
negotiations.
Specifically, Mr. President, this Administration has not fought to
enforce the rights of American citizens, American communities, and
American air carriers.
Under the existing air services agreement between the United States
and the United Kingdom, the so-called Bermuda II agreement, the United
States has the right to designate a U.S. flag carrier to serve the
Charlotte-London route.
On February 20, 1998, the U.S. Department of Transportation awarded
this route to US Airways. US Airways announced its plans to launch
nonstop service on May 7, 1998 and to compete with British Airways'
monopoly on this route.
With its network at Charlotte, US Airways was prepared to offer
convenient one-stop service to the United Kingdom from dozens of cities
in North Carolina, South Carolina, and the surrounding area.
However, the government of the United Kingdom failed to provide US
Airways with commercially viable landing and take-off rights at Gatwick
Airport, London's secondary airport.
The Bermuda II agreement prohibits US Airways from serving Heathrow
Airport at all. Only two U.S. carriers are allowed to serve Heathrow. I
want to remind my colleagues that the British are blocking access not
to the primary airport, Heathrow, but even to the secondary airport,
Gatwick.
Yes, Mr. President, the British Government refused to facilitate
access to its secondary airport for a competitor to the British Airways
monopoly on the Charlotte-London route.
US Airways tried to obtain landing and take-off rights at Gatwick
airport. The British refuse to budge. As a result, US Airways was
forced to cancel its Charlotte-London service for the

[[Page S10887]]

high-peak summer of 1998 and for the winter of 1998-1999 as well.
The outrage is that not only was British Airways' monopoly at
Charlotte preserved, but the Department of Transportation granted
British Airways yet another monopoly route--between London and Denver.
That's right, while the British refused to comply with their Bermuda
II obligations, our Department of Transportation gave them another
monopoly route.
While the US Airways Charlotte flight remains grounded, and while the
British thumb their noses at us, British Airways now has a monopoly on
ten routes between the U.S. and the U.K.
This Sense of the Senate urges the U.S. Government, especially the
U.S. Secretary of Transportation, to act to enforce U.S. rights under
the Bermuda II agreement.
Our government seems willing to grant foreign carriers the right to
serve our airports on a monopoly basis but unwilling to take a firm
stand with foreign governments.
We need the Administration to ensure that our carriers have the right
to serve our citizens and enforce their rights under international law.
We hear a lot of talk from the Administration these days about ``Open
Skies'' with the U.K. We understand that negotiations are about to
begin to achieve a more competitive marketplace.
It is critical, however, that the Secretary of Transportation first
ensure that existing rights are enforced for the benefit of U.S.
citizens.
The people of the Southeast have been denied the benefits of
competitive service by a U.S. flag carrier to the U.K.
Surely, an Administration that refuses to enforce existing rights
cannot possibly negotiate an agreement that is less than a full
surrender to the British. We didn't surrender in 1776 and we will not
surrender now.
Mr. HOLLINGS. Mr. President, I want to thank the Chairman and Senator
Ford for their support on this issue. This is a simple matter of
fairness and equity. The unreasonable and anticompetitive conduct of
the United Kingdom has gone on far too long and exacted an unacceptable
toll on the Carolinas.
Mr. President, the Secretary awarded the Charlotte-London (Gatwick)
route to US Airways on September 12, 1997. On May 7, 1998, US Airways
announced plans to launch nonstop service in competition with British
Airways, providing a convenient one-stop service from dozens of cities
in North and South Carolina. Unfortunately, US Airways was forced to
cancel this service because of the UK refusal to provide commercially
viable access to Gatwick.
It is now time for the Secretary to assert our rights and enforce the
Bermuda II Agreement.
Mr. President, before the Secretary enters into negotiations on a new
broad bilateral agreement, equity dictates that the Secretary must
resolve this issue.
Mr. McCAIN. Mr. President, this sense-of-the-Senate amendment is
agreeable on both sides. I urge its adoption.
The PRESIDING OFFICER. Without objection, the amendment is agreed to.
The amendment (No. 3631) was agreed to.
Mr. McCAIN. Mr. President, I move to reconsider the vote.
Mr. FORD. I move to lay that motion on the table.
The motion to lay on the table was agreed to.

Amendment No. 3632

Mr. McCAIN. Mr. President, I send an amendment on behalf of Mr.
DeWine to the desk.
The PRESIDING OFFICER. The clerk will report.
The legislative clerk read as follows:

The Senator from Arizona (Mr. McCain), for Mr. DeWine
proposes an amendment numbered 3632.

Amendment No. 3633

(Purpose: To provide for criminal penalties for pilots operating in air
transportation without an airman's certificate)

Mr. McCAIN. Mr. President, I send an amendment to the desk on behalf
of Mr. Thompson and myself.
The PRESIDING OFFICER. The clerk will report.
The legislative clerk read as follows:

The Senator from Arizona (Mr. McCain), for Mr. Thompson,
proposes an amendment numbered 3633.

Mr. McCAIN. Mr. President, I ask unanimous consent that reading of
the amendment be dispensed with.
The PRESIDING OFFICER. Without objection, it is so ordered.
The amendment is as follows:

At the appropriate place in title III, insert the
following:

SEC. 3 . CRIMINAL PENALTY FOR PILOTS OPERATING IN AIR
TRANSPORTATION WITHOUT AN AIRMAN'S CERTIFICATE.

(a) In General.--Chapter 463 of title 49, United States
Code, is amended by adding at the end the following:

``Sec. 46317. Criminal penalty for pilots operating in air
transportation without an airman's certificate

``(a) Application.--This section applies only to aircraft
used to provide air transportation.
``(b) General Criminal Penalty.--An individual shall be
fined under title 18, imprisoned for not more than 3 years,
or both, if that individual--
``(1) knowingly and willfully serves or attempts to serve
in any capacity as an airman without an airman's certificate
authorizing the individual to serve in that capacity; or
``(2) knowingly and willfully employs for service or uses
in any capacity as an airman an individual who does not have
an airman's certificate authorizing the individual to serve
in that capacity.
``(c) Controlled Substance Criminal Penalty.--(1) In this
subsection, the term `controlled substance' has the same
meaning given that term in section 102 of the Comprehensive
Drug Abuse Prevention and Control Act of 1970 (21 U.S.C.
802).
``(2) An individual violating subsection (b) shall be fined
under title 18, imprisoned for not more than 5 years, or
both, if the violation is related to transporting a
controlled substance by aircraft or aiding or facilitating a
controlled substance violation and that transporting, aiding,
or facilitating--
``(A) is punishable by death or imprisonment of more than 1
year under a Federal or State law; or
``(B) is related to an act punishable by death or
imprisonment for more than 1 year under a Federal or State
law related to a controlled substance (except a law related
to simple possession (as that term is used in section
46306(c)) of a controlled substance).
``(3) A term of imprisonment imposed under paragraph (2)
shall be served in addition to, and not concurrently with,
any other term of imprisonment imposed on the individual
subject to the imprisonment.''.
(b) Clerical Amendment.--The table of sections at the
beginning of chapter 463 of title 49, United States Code, is
amended by adding at the end the following:

``46317. Criminal penalty for pilots operating in air transportation
without an airman's certificate.''.

Mr. McCAIN. Mr. President, this amendment has been cleared on both
sides of the aisle. I don't believe there is any further debate. I
yield the floor.
Mr. FORD. Mr. President, this side has no objection to this
amendment. It is long overdue. It is directed at enforcement of
certificates for pilots. We think it is needed; therefore, this side
approves it.
The PRESIDING OFFICER. If there is no objection, the amendment is
agreed to.
The amendment (No. 3633) was agreed to.
Mr. McCAIN. Mr. President, I move to reconsider the vote.
Mr. FORD. I move to lay that motion on the table.
The motion to lay on the table was agreed to.

[[Page S10888]]

Mr. McCAIN. Mr. President, I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The bill clerk proceeded to call the roll.
Mr. ROBB. Mr. President, I ask unanimous consent that the order for
the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.

Amendment No. 3634

(Purpose: To ensure consumers benefit from any changes to the slot rule
and perimeter rule at Ronald Reagan Washington National Airport)

Mr. ROBB. Mr. President, I have an amendment, and I send it to the
desk and ask for its immediate consideration.
The PRESIDING OFFICER. The clerk will report.
The bill clerk read as follows:

The Senator from Virginia (Mr. Robb), for himself, Ms.
Snowe, Ms. Collins and Mr. Gregg, proposes an amendment
numbered 3634.

Mr. ROBB. Mr. President, I ask unanimous consent that reading of the
amendment be dispensed with.
The PRESIDING OFFICER. Without objection, it is so ordered.
The amendment is as follows:

On page 41, line 22, strike the ``and''.
On page 41, line 23, strike the period and insert ``;''.
On page 41, line 24 insert the following:
``(3) not reduce travel options for communities served by
small hub airports and medium hub airports within the
perimeter described in section 49109 of title 49, United
States Code; and
``(4) not result in meaningfully increased travel delays.''

Mr. ROBB. Mr. President, I understand that a number of Senators could
conceivably benefit from the additional flights at National. Current
language in the bill directs the Secretary of Transportation to award
new flights for service outside the perimeter if those flights will
provide ``network benefits beyond the perimeter'' and ``increase
competition in multiple markets.''
I believe this proposed test tilts the Secretary's decision in favor
of consumers flying beyond the perimeter and away from considering the
benefits to all consumers using this region's airports. For that
reason, I am proposing an amendment to provide a more balanced
approach. Consumers using the airports are not just worried about the
availability of long-haul service, they are also worried about timely
service and the availability of service to smaller airports.
The amendment I am offering would simply require the Secretary to
consider those factors in awarding any new slots at National. Senators
Gregg, Smith of New Hampshire, Graham of Florida, Snowe, and Collins
have agreed to cosponsor this amendment.
Mr. President, I ask unanimous consent that Senator Smith of New
Hampshire and Senator Graham of Florida be added as cosponsors to the
amendment.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. ROBB. Again, Mr. President, I believe very strongly--and will
have more to say later this afternoon--that it is wrong for the
Congress to retreat from its promise to the citizens of this region,
and I believe the changes in this bill will be harmful to the capital
area's economy as well as its quality of life. If we are going to
meddle in the rules governing service at National, however, we should
do so in a way that is fair to all consumers.
I understand that this amendment has been accepted by the managers on
both sides, and I thank the managers for their assistance. I am
prepared to move it or set it aside, whichever would be the preference
of either manager at this time.
Mr. SESSIONS. I must say it is not cleared on this side at this time.
We would be glad to continue to evaluate that, but I am not at liberty
to accept it at this point.
Mr. ROBB. I understand. With that, I ask unanimous consent that it be
temporarily laid aside.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. ROBB. I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The assistant legislative clerk proceeded to call the roll.
Mr. ROBB. Mr. President, I ask unanimous consent that the order for
the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. GRAHAM. Mr. President, I rise in support of the amendment
proposed by Mr. Robb of which I am proud to be a cosponsor.
This amendment addresses an issue of great importance to the State of
Florida. Specifically, concern has been expressed about the weakening
of the ``Perimeter Rule,'' and the availability of nonstop flights
between smaller airports and Reagan National Airport. I have been in
touch with representatives from Jacksonville, Ft. Meyers, West Palm
Beach, and Fort Lauderdale. They are convinced that a substantial
portion of the direct flights to National that operate out of these
airports would eventually be eliminated because the airlines would
choose the higher revenue options. A study done by the Washington
Airports Task Force supports this opinion.
The study shows that if the perimeter rule was essentially eliminated
or weakened by allowing exemptions, economics will drive the airlines
to take that airport's capacity away from markets within the perimeter
and re-apply it to the higher value markets outside of the perimeter.
That means that as many as 25 cities within the perimeter would be
vulnerable to loss of some or all of their nonstop service to National.
The study also shows that as many as 1.6 million air travelers in 93
congressional districts could be affected.
This amendment assures that, for those communities that are served by
small and medium hub airports that fall within the perimeter, travel
options will not be reduced and consumers will not be subjected to
increased travel delays. In addition, this legislation protects the
level of service and choices for consumers in the State of Florida and
throughout the country.
I hope that you can support our efforts to ensure that the aviation
service in our States are not threatened.
Mr. ROBB. Mr. President, I understand that the managers are now
prepared to weigh in on this particular amendment. I yield to the
managers of the amendment for any comments they might like to make.
Mr. SESSIONS. Mr. President, we are prepared to accept this
amendment. I know of no objection.
Mr. BRYAN. No objection on this side of the aisle.
The PRESIDING OFFICER. Without objection, the amendment is agreed to.
The amendment (No. 3634) was agreed to.
Mr. ROBB. I move to reconsider the vote.
Mr. BRYAN. I move to lay that motion on the table.
The motion to lay on the table was agreed to.
Mr. SESSIONS. I suggest the absence of a quorum.
Mr. MOYNIHAN. Mr. President, I ask the distinguished manager to
withhold the request.
Mr. SESSIONS. I withdraw that request, Mr. President.
Mr. MOYNIHAN addressed the Chair.
The PRESIDING OFFICER. The Senator from New York.

Amendment No. 3635

(Purpose: To provide for reporting of certain amounts contributed to
the Airport and Airway Trust Fund and funding of States for airport
improvement)

Mr. MOYNIHAN. Mr. President, I send to the desk an amendment and ask
for its immediate consideration.
The PRESIDING OFFICER. The clerk will report the amendment.
The assistant legislative clerk read as follows:

The Senator from New York (Mr. Moynihan) proposes an
amendment numbered 3635.

Mr. MOYNIHAN. Mr. President, I ask unanimous consent that reading of
the amendment be dispensed with.
The PRESIDING OFFICER. Without objection, it is so ordered.
The amendment is as follows:

At the appropriate place in title V, insert the following:

SEC. 5 . ALLOCATION OF TRUST FUND FUNDING.

(a) Definitions.--In this section:
(1) Airport and airway trust fund.--The term ``Airport and
Airway Trust Fund'' means the trust fund established under
section 9502 of the Internal Revenue Code of 1986.
(2) Secretary.--The term ``Secretary'' means the Secretary
of Transportation.
(3) State.--The term ``State'' means each of the States,
the District of Columbia, and the Commonwealth of Puerto
Rico.

[[Page S10889]]

(4) State dollar contribution to the airport and airway
trust fund.--The term ``State dollar contribution to the
Airport and Airway Trust Fund'', with respect to a State and
fiscal year, means the amount of funds equal to the amounts
transferred to the Airport and Airway Trust Fund under
section 9502 of the Internal Revenue Code of 1986 that are
equivalent to the taxes described in section 9502(b) of the
Internal Revenue Code of 1986 that are collected in that
State.
(b) Reporting.--
(1) In general.--As soon as practicable after the date of
enactment of this Act, and annually thereafter, the Secretary
of the Treasury shall report to the Secretary the amount
equal to the amount of taxes collected in each State during
the preceding fiscal year that were transferred to the
Airport and Airway Trust Fund.
(2) Report by secretary.--Not later than 90 days after the
date of enactment of this Act, and annually thereafter, the
Secretary shall prepare and submit to Congress a report that
provides, for each State, for the preceding fiscal year--
(A) the State dollar contribution to the Airport and Airway
Trust Fund; and
(B) the amount of funds (from funds made available under
section 48103 of title 49, United States Code) that were made
available to the State (including any political subdivision
thereof) under chapter 471 of title 49, United States Code.

Mr. MOYNIHAN. Mr. President, this is a simple proposal to obtain
numbers about a Federal program as regards the respective States. As a
member of the Committee on Environment and Public Works for the last 22
years, I served as chairman, at one point, and handled a number of
highway bills, as we call them, transportation bills, and have been
involved with negotiations with the House in these matters.
One of the subjects that comes forward continuously is the payments
by respective State residents, or persons passing through a State, into
the highway trust fund. This was established in 1956 by President
Eisenhower, under his administration, on the recommendation of a
commission headed by General Clay, with the previous Speaker, Mr.
Wright of Texas, as one of the persons animating the effort in the
Congress. There was a source of funding for the Interstate and Defense
Highway Program. Indeed, there was, and we have very successfully
finished that program and we continue to fund transportation projects
across the Nation with those revenues as they come in.

Now, in 1986 we established the airport and airway trust fund. It is
a ticket tax and other taxes. It brings considerable revenue, as anyone
who has recently ridden on the Washington-New York shuttle can attest.
In fiscal year 1998, we estimate that $4.5 billion was collected in
ticket taxes.
However, we have no State-by-State analysis of the dollar
contributions. Inevitably and properly, the moneys are used by the
Federal Aviation Administration to provide airport projects around the
Nation, but with no accounting for the relative contributions of the
different States with the thought that there be some proportionality as
to the return to the States. I say ``some''--nothing precise, nothing
is proposed in this amendment to make such a proportionality
requirement. Indeed, it is not desired.
Public policy on transportation should follow the needs of
transportation, and yet it is reasonable to assume that Senators and
Representatives will expect some relationship between what their State
provides and what it receives. That may now take place; it may not take
place. The answer is we don't know.
The most normal function of government when it collects a tax is to
record the origins and the specifics of the revenue stream. There will
be some difficulty doing this. It is tricky. A good number of airline
tickets are now purchased on the Internet as opposed to travel agents
or at the airport. These are methodological problems which the Treasury
is entirely capable of dealing with through sampling and other devices.
This amendment quite specifically says, ``as soon as practicable after
the date of enactment of this act and annually thereafter,'' that the
Secretary of the Treasury will report to the Secretary of
Transportation.
The term ``as soon as practicable'' gives the Treasury the leeway it
requires to get these numbers and break them down. It is routine
government. It is good government. It is an opportunity to avoid a
great deal of misunderstanding and discord in the committees involved
and on the floor as we ask how appropriate, and in a general sense, how
fair the use of these funds is--the allocation of these funds once they
have been obligated through taxation.
Accordingly, I hope the Senate can approve this amendment.
Mr. President, I respectfully inquire of the managers whether this
straightforward measure could be accepted and spare the Senate the
time.
Mr. BRYAN. If I might respond to the inquiry from my friend, the
distinguished Senator from New York, I am informed at this point we are
not able to accept the amendment. The floor leader is absent from the
floor temporarily and will return shortly. Perhaps the Senator may be
able to engage in a conversation with him and the distinguished Senator
on the other side of the aisle as to working out this point. I am not
able to give the distinguished Senator the assurance that he needs that
we can approve it.
Mr. MOYNIHAN. My friend from Alabama?
Mr. SESSIONS. I thank the distinguished Senator.
This amendment has just been presented and is now being seen by the
managers. I think both sides of the aisle have expressed some concerns,
so we will have to study it some more.
Mr. MOYNIHAN. In that regard, Mr. President, I wonder if I could,
with the understanding of the managers, ask for the yeas and nays with
the understanding that if the managers, after consideration of this
very simple proposal, decide that it is acceptable, when that moment
comes when this amendment comes up after 5 o'clock, that the yeas and
nays be vitiated and the amendment be accepted; if not, we will have a
vote.
The PRESIDING OFFICER. Is there a sufficient second? There is a
sufficient second.
The yeas and nays were ordered.
Mr. MOYNIHAN. Once again, if on further consideration the managers
would like to accept the amendment, we will vitiate the vote when the
time comes.
I thank the Chair, and I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The assistant legislative clerk proceeded to call the roll.
Mr. GRAMM. Mr. President, I ask unanimous consent that the order for
the quorum call be rescinded.
The PRESIDING OFFICER (Mr. Gorton). Without objection, it is so
ordered.
Mr. GRAMM. Mr. President, I ask unanimous consent to speak as in
morning business for 25 minutes.
The PRESIDING OFFICER. Without objection, it is so ordered.

____________________