This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

What Lee Moak Learned in Washington

Stocks in this article: BA DAL

Delta CEO Richard Anderson said Moak realizes that "the real challenges for the U.S. airline industry are outside the borders of this country, where you have airlines that are government-owned or depend on governments for backstop financing and run a world-domination tour.

"We have two models: the Delta model, which doesn't get government aid, and airlines that don't care about profitability because they are economic development arms of sovereign governments," Anderson said, in an interview.

A major problem, the two leaders agreed, is that while the U.S. lacks a comprehensive airline policy, governments in other countries are intensely focused on financing and promoting the interests of their national airlines. For instance, several Middle East airlines rely heavily on government backing and the Japanese government bailed out bankrupt Japan Airlines.

Among ALPA's recent legislative efforts:

After the DOT adopted regulations imposing heavy fines on airlines whose aircraft sit on the tarmac for more than three hours, Congress considered including those regulations in the FAA reauthorization bill in 2012. But ALPA worked successfully to keep them out, because inclusion would have limited any ability for future modifications. Moak made the point that airlines are not typically responsible for tarmac delays -- an airport may lack facilities or infrastructure to allow unexpected passengers to disembark, or federal inspectors may not be available to process international travelers. Moreover, the regulations "have the tendency to usurp captain's authority and to have a negative impact on the airline industry," Moak said.

When the DHS announced last year that it would establish Customs and Border Patrol "pre-clearance" in the Abu Dhabi airport for passengers flying to the U.S., "We led the charge against that," Moak said. "No U.S. carrier even flies to Abu Dhabi -- it was there strictly to give a competitive advantage to a foreign airline." DHS has promoted the concept that it could establish customs pre-clearance stations in airports around the world. Language enabling the practice is part of a pending DHS appropriation bill, which is opposed by ALPA as well as the AFL-CIO, A4A, the Airports Council International and the Chamber of Commerce.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,672.60 -141.38 -0.79%
S&P 500 2,051.82 -11.33 -0.55%
NASDAQ 4,757.8790 +7.4820 0.16%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs