President Donald Trump assured U.S. airline executives that his administration would help them compete with foreign carriers that he said are subsidized by their governments, and promised infrastructure upgrades, lower regulation and tax relief.
“We have obsolete airports and train systems and bad roads,” Trump said in a meeting on Thursday with the companies and airport leaders at the White House. “You people are regulated probably as much as anybody. We are going to announce something over the next two or three weeks that will be phenomenal in terms of tax.”
The meeting’s agenda will cover airport security, airline fees, regulation and an overhaul of the nation’s air-traffic-control system, a White House official said. The president’s Jan. 27 order barring U.S. entry for refugees and visitors from seven predominantly Muslim countries isn’t scheduled for discussion, the official said. A federal appeals court is considering whether to reinstate the ban, which was temporarily blocked by a federal judge on Feb. 3.
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Airlines are the latest U.S. industry to have its bosses called to the White House following meetings with car companies, drugmakers and banks. Southwest Airlines Co. Chief Executive Officer Gary Kelly said last month he was “hopeful” the new administration would take up tax and regulatory changes as well as infrastructure investment, particularly in modernizing air traffic control.
“The airline industry listening session breakfast is an opportunity for the president and his team to hear directly from the individuals who work day in and day out to improve consumer experience in air travel,” said Lindsay Walters, a White House spokeswoman.
Airlines, airports
Executives from Delta Air Lines Inc., United Continental Holdings Inc. and Southwest were expected to attend, along with counterparts from smaller airlines such as JetBlue Airways Corp. and Alaska Air Group Inc. Freight giants United Parcel Service Inc. and FedEx Corp. were expected to be there, as were officials from airports in New York, Washington, Chicago, Los Angeles and smaller cities such as Nashville, Tennessee, and Buffalo, New York. Trade groups Airlines for America and Airports Council International also were expected to attend.
One notable absence: Doug Parker, chief executive officer of American Airlines Group Inc., the world’s largest carrier. He bowed out citing a scheduling conflict and has been in touch with the Trump administration, said a spokesman for the airline.
Among the potential discussion points at the meeting:
Air-traffic control. Most of the airline chief executives support a plan to spin off the Federal Aviation Administration’s air-traffic-control division into a nonprofit corporation. Such a system would be financed by user fees and would provide for more stable funding, proponents say. Delta is among the opponents, arguing that the change won’t ease flight congestion.
Regulations. The Obama administration unveiled sweeping new consumer protections for airline passengers in October, including a plan to give travelers refunds when bags arrive late. Carriers called it a harmful attempt to “re-regulate” the industry. Persian Gulf airlines. The CEOs of American, Delta and United already have asked to meet with Secretary of State Rex Tillerson over their contention that three Middle Eastern airlines—Emirates, Qatar Airways Ltd. and Etihad Airways PJSC—are competing unfairly through more than $50 billion in aid from their governments. The U.S. airlines want federal officials to set up meetings to discuss the issue with the United Arab Emirates and Qatar. The Gulf carriers have disputed the claims.
Other competition. A broad coalition of U.S. airlines and labor unions also want Trump to revoke approval secured by Norwegian Air International, an Irish subsidiary of Norwegian Air Shuttle ASA, to serve U.S. airports. They say the decision would enable the carrier to skirt safety regulations and labor protections. Norwegian disputes that and has pledged to boost competition on traditionally lucrative routes across the Atlantic.
“I know you’re under pressure” from foreign competition, Trump told the executives. He said he’d seek to help domestic carriers while also encouraging foreign airlines to invest in the U.S.
President Donald Trump assured U.S. airline executives that his administration would help them compete with foreign carriers that he said are subsidized by their governments, and promised infrastructure upgrades, lower regulation and tax relief.
“We have obsolete airports and train systems and bad roads,” Trump said in a meeting on Thursday with the companies and airport leaders at the White House. “You people are regulated probably as much as anybody. We are going to announce something over the next two or three weeks that will be phenomenal in terms of tax.”
The meeting’s agenda will cover airport security, airline fees, regulation and an overhaul of the nation’s air-traffic-control system, a White House official said. The president’s Jan. 27 order barring U.S. entry for refugees and visitors from seven predominantly Muslim countries isn’t scheduled for discussion, the official said. A federal appeals court is considering whether to reinstate the ban, which was temporarily blocked by a federal judge on Feb. 3.
Airlines are the latest U.S. industry to have its bosses called to the White House following meetings with car companies, drugmakers and banks. Southwest Airlines Co. Chief Executive Officer Gary Kelly said last month he was “hopeful” the new administration would take up tax and regulatory changes as well as infrastructure investment, particularly in modernizing air traffic control.
“The airline industry listening session breakfast is an opportunity for the president and his team to hear directly from the individuals who work day in and day out to improve consumer experience in air travel,” said Lindsay Walters, a White House spokeswoman.
Executives from Delta Air Lines Inc., United Continental Holdings Inc. and Southwest were expected to attend, along with counterparts from smaller airlines such as JetBlue Airways Corp. and Alaska Air Group Inc. Freight giants United Parcel Service Inc. and FedEx Corp. were expected to be there, as were officials from airports in New York, Washington, Chicago, Los Angeles and smaller cities such as Nashville, Tennessee, and Buffalo, New York. Trade groups Airlines for America and Airports Council International also were expected to attend.
One notable absence: Doug Parker, chief executive officer of American Airlines Group Inc., the world’s largest carrier. He bowed out citing a scheduling conflict and has been in touch with the Trump administration, said a spokesman for the airline.
Among the potential discussion points at the meeting:
Air-traffic control. Most of the airline chief executives support a plan to spin off the Federal Aviation Administration’s air-traffic-control division into a nonprofit corporation. Such a system would be financed by user fees and would provide for more stable funding, proponents say. Delta is among the opponents, arguing that the change won’t ease flight congestion.
Regulations. The Obama administration unveiled sweeping new consumer protections for airline passengers in October, including a plan to give travelers refunds when bags arrive late. Carriers called it a harmful attempt to “re-regulate” the industry. Persian Gulf airlines. The CEOs of American, Delta and United already have asked to meet with Secretary of State Rex Tillerson over their contention that three Middle Eastern airlines—Emirates, Qatar Airways Ltd. and Etihad Airways PJSC—are competing unfairly through more than $50 billion in aid from their governments. The U.S. airlines want federal officials to set up meetings to discuss the issue with the United Arab Emirates and Qatar. The Gulf carriers have disputed the claims.
Other competition. A broad coalition of U.S. airlines and labor unions also want Trump to revoke approval secured by Norwegian Air International, an Irish subsidiary of Norwegian Air Shuttle ASA, to serve U.S. airports. They say the decision would enable the carrier to skirt safety regulations and labor protections. Norwegian disputes that and has pledged to boost competition on traditionally lucrative routes across the Atlantic.
“I know you’re under pressure” from foreign competition, Trump told the executives. He said he’d seek to help domestic carriers while also encouraging foreign airlines to invest in the U.S.
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