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A Memo to Obama

For the new president, some advice on what to do with Amtrak, American Airlines, airport security, the Transportation Department, airline subsidies, and Air Force One.

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From Point AA to BA

One decision the Bush Administration deferred was the request for anti-trust immunity from American Airlines and British Airways--the major players in Oneworld, one of the three global airline alliances. Key U.S. and international carriers in the competing Star and SkyTeam alliances have been granted various forms of anti-trust immunity, but the A.A.-B.A. request has foundered twice before. However, the previous stumbling block—British Airways' dominant position at London's Heathrow Airport--has disappeared. Lufthansa, mainland Europe's most important airline and the partner of United Airlines in the Star Alliance, will soon control Bmi, the carrier with Heathrow's second largest number of take-off and landing positions. And 2008's "Open Skies" agreement has permitted all of American Airlines' competitors to launch flights into Heathrow. I've opposed an A.A.-B.A. deal in the past, but there's no logical basis for denying it now. If anything, a stronger Oneworld Alliance and anti-trust immunity will increase travel options for flyers, not depress choice or increase fares.

It's Not About You
I note that you have followed presidential tradition and allowed Cadillac to build you a new, customized limousine. It's good that you "bought" American. But don't get caught up in the trappings of the office. Airbus, the European consortium, says it wants to build you a new version of Air Force One based on the Airbus A380, its double-decked leviathan. To quote a former president: Just say no. The existing aircraft that serves the POTUS, a tricked out Boeing 747-200, works just fine. Besides, the American people don't want to see you with too many new toys, especially when they are struggling to keep their economic houses in order.

Stupidity, Not Security
Federalizing the nation's airport security screeners after the 9/11 terror attacks was a given. The previous approach—private contractors who paid minimum wage and had few standards—was a joke. But seven years on, the Transportation Security Administration has become its own punch line. Rather than concentrate on smart, swift and efficient ways to process the vast majority of travelers who do not pose a security risk, the T.S.A. has done things like ban snow globes in carry-on bags; give screeners faux police badges; and create Big Brother computer systems such as CAPPS II and Secure Flight that invade our privacy without improving our security. Worst of all, T.S.A. assumes all passengers as guilty until they can prove themselves innocent during a humiliating, time-consuming charade at the security checkpoint. The imminent departure of T.S.A. Administrator Kip Hawley affords you the opportunity to bring in fresh blood, revisit the agency's purpose and procedures, and remind the workforce that flyers are passengers, not perpetrators.

The Fine Print…
Almost all of the business-travel issues I discussed in a column just before Election Day will also face you and your team. The precipitous decline in the price of oil may defer an immediate crisis in the domestic airline industry, but none of the large network carriers are financially sound. A long-term decline in passenger traffic could drive one or more of them back into bankruptcy in the next year or two.


Joe Brancatelli writes Portfolio.com’s business travel column, Seat 2B. Brancatelli is the former executive editor of Frequent Flyer magazine and has written about travel in numerous publications.
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