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Airport Privatization: Issues and Options for Congress [August 16, 2017]
"Almost all commercial service airports in the United States are owned by local and state governments, or by public entities such as airport authorities or multipurpose port authorities. In 1996, Congress established the Airport Privatization Pilot Program (APPP) to explore the prospect of privatizing publicly owned airports and using private capital to improve and develop them. In addition to reducing demand for government funds, privatization has been promoted as a way to make airports more efficient and financially viable. Participation in the APPP has been very limited. Only two airports have completed the privatization process, and one of them later reverted to public ownership. Owners of other airports considered privatization, but eventually chose not to proceed. The lack of interest in privatization among U.S. airports could be the result of [1] readily available financing sources for publicly owned airports; [2] barriers or lack of incentives to privatize; [3] the potential implications for major stakeholders; and [4] satisfaction with the status quo."
Tang, Rachel
Federal Civil Aviation Programs: In Brief [October 16, 2018]
"Federal Aviation Administration (FAA) programs are funded under four broad budget accounts: operations and maintenance (such as air traffic control and aviation safety functions); facilities and equipment (such as control towers and navigation beacons); grants for airport sunder the Airport Improvement Program (AIP); and civil aviation research conducted or sponsored by FAA. Additionally, certain aviation programs are administered by the Department of Transportation (DOT) Office of the Secretary, including the Essential Air Service (EAS) program, which subsidizes airline service to certain small or isolated communities. These programs are funded primarily through a special trust fund, the Airport and Airways Trust Fund (AATF), and, in part, through general fund contributions. The FAA Reauthorization Act of 2018 (P.L. 115-254) authorizes AATF taxes and revenue collections and civil aviation program expenditures through FY2023."
Elias, Bartholomew; Tang, Rachel Y.
Norwegian Air International and Low-Cost Long-Haul Flights [August 22, 2019]
From the Document: "Legislation introduced in the House of Representatives in July 2019 would prohibit the U.S. Department of Transportation (DOT) from allowing a foreign airline to serve the United States if it 'is established in a country other than the home country of its majority owner or owners in order to avoid regulations of the home country.' The bill, H.R. 3632, is the latest salvo in a prolonged battle over issuance of a foreign air carrier permit that allows Norwegian Air Shuttle, which owns a group of discount carriers, to operate transatlantic flights to U.S. destinations."
Tang, Rachel Y.
Federal Civil Aviation Programs: In Brief [February 27, 2018]
"Federal Aviation Administration (FAA) programs and activities are funded under four broad budget accounts: operations and maintenance (such as air traffic control and aviation safety functions); facilities and equipment (such as control towers and navigation beacons); grants for airport improvements under the Airport Improvement Program (AIP); and civil aviation research and development conducted or sponsored by FAA. Additionally, certain aviation programs are administered by the Department of Transportation (DOT) Office of the Secretary, including the Essential Air Service (EAS) program, which subsidizes airline service to certain small or isolated communities. These programs are funded primarily through a special trust fund, the Airport and Airways Trust Fund (AATF), and, in part, through general fund contributions."
Elias, Bartholomew; Tang, Rachel
Supersonic Passenger Flights [November 14, 2018]
"Four decades have passed since the first trans-oceanic supersonic passenger flight took off from London Heathrow Airport in 1976. Subsequently, more than 2.5 million passengers flew supersonically until British Airways and Air France took the Concorde out of service in 2003. Although no supersonic passenger aircraft have flown since then, aviation enthusiasts, aircraft and parts manufacturers, airlines, and some Members of Congress have expressed interest in restarting supersonic air travel. Several U.S. startup companies are now developing supersonic commercial and business jets. The major issues affecting the introduction of supersonic aircraft appear to remain the same as in the Concorde era--how to translate technological advances into commercial ventures that are economically viable and acceptable to regulators and the public. Gaining international consensus and approvals to fly supersonically over other countries besides the United States may be a critical element in determining the market viability of future civil supersonic aircraft designs. International agreements would also need to address permissible conditions for supersonic flight operations over water and over polar regions that have opened up to civil aircraft operations over the past decade and offer shorter flights between the United States and Asia."
Tang, Rachel Y.; Elias, Bartholomew; Luther, Linda . . .
Essential Air Service (EAS) [Updated December 19, 2018]
"The Airline Deregulation Act of 1978 gave airlines almost total freedom to determine which domestic markets to serve and what airfares to charge. This raised the concern that communities with relatively low passenger levels would lose service as carriers shifted their operations to serve larger and often more profitable markets. To address this concern, Congress established the Essential Air Service (EAS) program to ensure that small communities that were served by certificated air carriers before deregulation would continue to receive scheduled passenger service, with subsidies if necessary. The EAS program is administered by the Office of the Secretary of the U.S. Department of Transportation (DOT), which enforces the eligibility requirements and determines the level of service required at eligible communities. By the end of FY2018, 174 communities in the United States received subsidized service under EAS."
Federal Civil Aviation Programs: In Brief [Updated January 11, 2019]
"Federal Aviation Administration (FAA) programs are funded under four broad budget accounts: operations and maintenance (such as air traffic control and aviation safety functions); facilities and equipment (such as control towers and navigation beacons); grants for airports under the Airport Improvement Program (AIP); and civil aviation research conducted or sponsored by FAA. Additionally, certain aviation programs are administered by the Department of Transportation (DOT) Office of the Secretary, including the Essential Air Service (EAS) program, which subsidizes airline service to certain small or isolated communities. These programs are funded primarily through a special trust fund, the Airport and Airway Trust Fund (AATF), and, in part, through general fund contributions. The FAA Reauthorization Act of 2018 (P.L. 115-254) authorizes AATF taxes and revenue collections and civil aviation program expenditures through FY2023."
Treasury and Federal Reserve Financial Assistance in Title IV of the CARES Act (P.L. 116-136) [April 28, 2020]
From the Summary: "The Coronavirus Aid, Relief, and Economic Security Act (CARES Act; H.R. 748) was signed into law as P.L. 116-136 on March 27, 2020, to assist those affected by the economic impact of Coronavirus Disease 2019 (COVID-19). This assistance is targeted to consumers, businesses, and the financial services sector. A key part of this assistance is provided to eligible businesses, states, and municipalities in Division A, Title IV of the CARES Act. Title IV allocates $500 billion to the Department of the Treasury (through the Exchange Stabilization Fund) to make loans and guarantees for three specified industries--passenger airlines, cargo airlines, and businesses critical to national security--and to support Federal Reserve lending facilities."
Scott, Andrew P.; Egar, William T.; Gnanarajah, Raj . . .
Federal Aviation Administration (FAA) Reauthorization Issues and Debate in the 115th Congress [May 29, 2018]
From the Document: "On April 27, 2018, the House of Representatives passed the FAA Reauthorization Act of 2018 (H.R. 4), a six-year Federal Aviation Administration (FAA) reauthorization measure that does not include a controversial proposal to privatize air traffic control laid (ATC) out in an earlier bill, H.R. 2997. On May 9, 2018, the Senate Committee on Commerce, Science and Transportation reported a four-year FAA reauthorization bill (S. 1405, S.Rept. 115-243) that does not address ATC privatization. The enactment of either bill would be the first long-term FAA reauthorization act since the FAA Modernization and Reform Act of 2012 (P.L. 112-95) expired at the end of FY2015."
Aviation Bills Take Flight, but Legislative Path Remains Unclear [July 25, 2017]
"Both the House Transportation and Infrastructure Committee and the Senate Committee on Commerce, Science, and Transportation acted favorably on bills to reauthorize the Federal Aviation Administration (FAA) and other aviation programs during the last week of June. The two bills, H.R. 2997 and S. 1405, have significant differences, many of them related to provisions in the House bill that would create a not-for-profit private corporation to take over responsibility for running the national air traffic control system. The Senate bill contains no similar provisions, and the path forward for the legislation will depend on whether the two houses can reach agreement on an issue that they were unable to bridge last year. Lack of agreement on air traffic control reforms in the 114th Congress led to the passage of a one-year aviation extension (P.L. 114-190) that will expire at the end of FY2017."
Tang, Rachel; Elias, Bartholomew
Airline Passenger Rights: The Federal Role in Aviation Consumer Protection [May 20, 2013]
"The deregulation of the airline industry in the United States in 1978 eliminated most governmental control over most business practices of airlines. However, the federal government continues to regulate certain practices for the protection of the airlines' customers, in addition to its long-standing role in overseeing air safety. Congressional interest in the rights of airline passengers became intense between 2007 and 2009, when a series of delays stranded passengers aboard airplanes at U.S. airports for 10 hours or longer. In the first six months of 2009, for example, there were reportedly 586 tarmac delays of more than three hours, including some instances in which passengers lacked access to food or drink or in which aircraft lavatories ceased to function. Since then, Congress has strengthened passengers' rights under federal law, and many Members of Congress have continued to follow aviation consumer issues closely. This report examines aviation consumer protections in the post-deregulation era. It explains the roles of Congress and the U.S. Department of Transportation (DOT) in protecting airline consumers, and discusses some major passenger rights issues and related laws and regulations."
Airport Privatization: Issues and Options for Congress [May 12, 2014]
"Almost all commercial service airports in the United States are owned by local and state governments, or by public entities such as airport authorities or multipurpose port authorities. In 1996, Congress established the Airport Privatization Pilot Program (APPP) to explore the prospect of privatizing publicly owned airports and using private capital to improve and develop them. In addition to reducing demand for government funds, privatization has been promoted as a way to make airports more efficient and financially viable. Participation in the APPP has been very limited. Only two airports have completed the privatization process, and one of them later reverted to public ownership. Owners of other airports considered privatization, but eventually chose not to proceed. The lack of interest in privatization among U.S. airports could be the result of (1) readily available financing sources for publicly owned airports; (2) barriers or lack of incentives to privatize; (3) the potential implications for major stakeholders; and (4) satisfaction with the status quo."
Aviation War Risk Insurance: Background and Options for Congress [September 5, 2014]
"Following the terrorist attacks of September 11, 2001, coverage for such attacks, and for 'war risks,' became difficult, if not impossible, for airlines to purchase from private insurers. In response, Congress passed expansions of the Federal Aviation Administration (FAA) Aviation War Risk Insurance Program. The amended statute (49 U.S.C. §44301 et seq) requires that the FAA offer war risk insurance to U.S. airlines with the premiums based on the cost of such coverage prior to the 9/11 terrorist attacks. The federal coverage under the program is relatively expansive, with coverage provided after the first dollar of losses and with a broad definition of what constitutes a war risk loss. The expansion of the program was limited in time, but has been extended several times over the years, often as part of appropriations legislation. The last extension was in the Consolidated Appropriations Act, 2014 (P.L. 113-76), which extended the expanded program to September 30, 2014. [...] Several presidential budgets in recent years have called for changes to the program to reduce government exposure. On March 31, 2014, the Secretary of Transportation submitted a draft legislative proposal to Congress which would make the program permanent but at the same time reduce its scope. Specifically, the administration proposal would create permanent coverage for war risk losses from nuclear, chemical, biological, and radiological events, while giving the Secretary the authority to offer full war risk coverage for 90 days after a widespread disruption in the insurance market, such as that following the 9/11 attacks. The administration draft proposal has not been incorporated into legislation introduced in the 113th Congress."
Webel, Baird; Elias, Bartholomew; Tang, Rachel
Essential Air Service (EAS): Frequently Asked Questions [February 3, 2014]
"On February 14, 2012, President Obama signed into law a four-year reauthorization of Federal Aviation Administration (FAA) programs, the FAA Modernization and Reform Act of 2012 (P.L. 112-95; the 2012 Act). The act is the first long-term authorization for federal civil aviation programs since 2007, and was enacted following 23 short-term extensions. The Essential Air Service (EAS) program was a focus of controversy during the FAA reauthorization process. The final legislation included policy reforms and changes to the funding of the EAS program. The Consolidated Appropriations Act of 2014 (P.L. 113-76), signed into law by the President on January 17, 2014, provided funding for FY2014, along with some relatively minor changes to the program. This report provides an overview of the EAS program and discusses the changes introduced by the FAA reauthorization bill and the Consolidated Appropriations Act of 2014."
Iran-U.S. Air Service Not Imminent [November 18, 2015]
"Airline service between Iran and the United States last operated in 1979, when the U.S. government imposed an embargo on flights following the Iran hostage crisis. Since then, travel and air cargo shipments between the two countries have been routed through third countries, and their extent has been limited by U.S. sanctions. The July 2015 agreement in which Iran accepted strict limits on its nuclear program in exchange for a broad lifting of U.S., European Union, and United Nations sanctions has raised the prospect that bilateral air service could resume. However, air travelers should not expect to catch direct flights between the United States and Iran any time soon. Generally speaking, airlines provide international services on the basis of bilateral or multilateral agreements among governments. The U.S. Department of Transportation (DOT) Office of the Assistant Secretary for Aviation and International Affairs, with assistance from the U.S. State Department, is responsible for negotiating air service agreements and awarding U.S. airlines the right to offer services provided for in those agreements."
Airline Passenger Rights: The Federal Role in Aviation Consumer Protection [July 21, 2015]
"The 1978 deregulation of the airline industry in the United States eliminated federal control over many airline business practices, including pricing and domestic route selection. However, the federal government continues to legislate and enforce certain consumer protections for airline passengers. Congress largely determines the degree to which the rights of airline passengers are codified in law or developed through regulatory rulemaking. The House Committee on Transportation and Infrastructure and the Senate Committee on Commerce, Science, and Transportation are the primary congressional committees of jurisdiction over airline passenger rights. Congress can authorize or require the U.S. Department of Transportation (DOT) to enact rules on certain issues, and it can enact requirements for airlines through direct legislation. In specific cases, DOT may take enforcement actions against air carriers that violate consumer protection rules. […] The FAA Modernization and Reform Act of 2012 (P.L. 112-95), signed into law by the President on February 14, 2012, included a number of provisions regarding the rights of airline passengers and created a firmer statutory basis for the rules adopted by DOT in 2009 and 2011. Nonetheless, a number of consumer-related subjects, including disclosure of code sharing arrangements on domestic flights, compensation of passengers 'bumped' from oversold flights, and disclosure of ancillary fees, remain controversial. There were efforts in the 113th Congress to overturn a DOT policy requiring that airline and travel websites give most prominent display to the total cost of a flight, including taxes and fees. Such action would have allowed airlines to advertise base airfares, even though consumers would not be able to purchase transportation at that price."
Essential Air Service (EAS): [September 3, 2015]
"The Airline Deregulation Act of 1978 gave airlines almost total freedom to determine which domestic markets to serve and what airfares to charge. This raised the concern that communities with relatively low passenger levels would lose service as carriers shifted their operations to serve larger and often more profitable markets. To address this concern, Congress established the Essential Air Service (EAS) program to ensure that small communities that were served by certificated air carriers before deregulation would continue to receive scheduled passenger service, with subsidies if necessary. The EAS program is administered by the Office of the Secretary of the U.S. Department of Transportation (DOT), which enforces the eligibility requirements and determines the level of service required at eligible communities. As of June 1, 2015, 159 communities in the United States received subsidized service under EAS."
Iran-U.S. Air Service Not Imminent [January 21, 2016]
"Airline service between Iran and the United States last operated in 1979, when the U.S. government imposed an embargo on flights following the Iran hostage crisis. Since then, travel and air cargo shipments between the two countries have been routed through third countries, and their extent has been limited by U.S. sanctions. The July 2015 agreement in which Iran accepted strict limits on its nuclear program in exchange for a broad lifting of U.S., European Union, and United Nations sanctions has raised the prospect that bilateral air service could resume. Certain sanctions were lifted on January 16, 2016, after the International Atomic Energy Agency certified that Iran had complied with requirements of the agreement. However, air travelers should not expect to catch direct flights between the United States and Iran any time soon."
Airline Passenger Rights: The Federal Role in Aviation Consumer Protection [August 17, 2016]
"The 1978 deregulation of the airline industry in the United States eliminated federal control over many airline business practices, including pricing and domestic route selection. However, the federal government continues to legislate and enforce certain consumer protections for airline passengers. Congress largely determines the degree to which the rights of airline passengers are codified in law or developed through regulatory rulemaking. The House Committee on Transportation and Infrastructure and the Senate Committee on Commerce, Science, and Transportation are the primary congressional committees of jurisdiction over airline passenger rights. Congress can authorize or require the U.S. Department of Transportation (DOT) to enact rules on certain issues, and it can enact requirements for airlines through direct legislation. In specific cases, DOT may take enforcement actions against air carriers that violate consumer protection rules."
Federal Civil Aviation Programs: In Brief [September 27, 2016]
"Federal Aviation Administration (FAA) programs and activities are funded under four broad budget accounts: operations and maintenance (such as air traffic control and aviation safety functions); facilities and equipment (such as control towers and navigation beacons); grants for airport improvements under the Airport Improvement Program (AIP); and civil aviation research and development conducted or sponsored by FAA. Additionally, certain aviation programs are administered by the Department of Transportation (DOT) Office of the Secretary, including the Essential Air Service (EAS) program, which subsidizes airline service to certain small or isolated communities. These programs are funded primarily through a special trust fund, the Airport and Airways Trust Fund (AATF), and, in part, through general fund contributions. Other federal entities also play significant roles in civil aviation. These include the National Aeronautics and Space Administration, which conducts extensive research on civil aeronautics; the National Oceanic and Atmospheric Administration, which provides research and operational support to FAA regarding aviation weather forecasting; the Transportation Security Administration in the Department of Homeland Security, which has authority over civil aviation security; and the National Transportation Safety Board, which investigates aviation accidents and makes safety recommendations to FAA. These programs are not considered in this report. This report focuses on FAA and DOT civil aviation programs addressed in the FAA Extension, Safety, and Security Act of 2016 (P.L. 114-190), enacted on July 15, 2016, which authorizes AATF taxes and revenue collections and civil aviation program expenditures through FY2017."
Airport Privatization: Issues and Options for Congress [February 3, 2016]
From the Summary: "In 1996, Congress established the Airport Privatization Pilot Program (APPP; 49 U.S.C. §47134; Section 149 of the Federal Aviation Reauthorization Act of 1996, P.L. 104-264) to increase access to sources of private capital for airport development and to make airports more efficient, competitive, and financially viable. Participation in the program has been very limited, in good part because major stakeholders have different, if not contradictory, objectives and interests. Only two U.S. commercial service airports have completed the privatization process established under the APPP. One of those, Stewart International Airport in New York State, subsequently reverted to public ownership. Luis Muñoz Marín International Airport in San Juan, Puerto Rico, is now the only airport with a private operator under the provisions of the APPP. Increasing interest in airport privatization is likely to require a number of significant policy changes, including the following: (1) Making privatization more attractive to public-sector owners by facilitating the use of privatization revenue for non-airport purposes. (2) Providing similar tax treatment to bonds issued by public-sector and private-sector airport operators, as public-sector operators now have access to less costly long-term finance than private operators. (3) Easing requirements for private owners to comply with assurances previously made by public-sector owners to obtain federal Airport Improvement Program (AIP) grants. (4) Accelerating the application and approval procedures for the APPP."
Rise of China's Auto Industry and Its Impact on the U.S. Motor Vehicle Industry [November 16, 2009]
"The automobile industry, a key sector in China's industrialization and modernization efforts, has been developing rapidly since the 1990s. In recent years, China has become the world's fastest growing automotive producer. Annual vehicle output has increased from less than 2 million vehicles in the late 1990s to 9.5 million in 2008. In terms of production volume in 2008, China has surpassed Korea, France, Germany, and the United States, trailing only Japan. A disproportionate share of China's output was heavy vehicles in the 1990s. However, since 2000 China's growth has been led by an increase in passenger cars, which now account for more than 65% of its vehicle production. China's automobile industry has continued to expand despite the global economic downturn. From January to October 2009, more than 10 million vehicles were sold in China. If such growth continues, China is on its way to becoming world's largest auto market. Unlike Korea or Japan, China's automotive industry has developed extensively through foreign direct investment. This investment has come in the form of alliances and joint ventures between international automobile manufacturers and Chinese partners. The international automobile manufacturers are unlikely to promote Chinese exports that compete with their own products in other markets. As a consequence, the Chinese companies that have expressed a strong interest in exporting cars have not had strong ties to foreign car producers and that, consequently, may struggle to meet safety and emission standards in industrialized countries."
International Air Service Controversies: Frequently Asked Questions [May 4, 2015]
"'Open skies' agreements are a form of international civil air service agreement that facilitates international aviation in a deregulated environment. They eliminate government involvement in airline decisionmaking about international routes, capacity, and prices. Since 1992, the United States has reached 114 open skies agreements governing international air passenger and air freight services. There are two ongoing controversies that are related to open skies agreements. One controversy involves some U.S. network airlines' and labor unions' opposition to the expansion of three fastgrowing airlines based in the Persian Gulf region--Emirates Airline, Etihad Airways, and Qatar Airways. The U.S. carriers allege the subsidies and support that these three Persian Gulf carriers purportedly receive from their government owners contravene fair competitive practices requirements of their home countries' open skies agreements with the United States. […] The other controversy concerns Norwegian Air International (NAI), an airline that is registered in Ireland and plans to operate transatlantic flights to U.S. destinations. NAI's application has met strong opposition from labor groups and some airlines that allege that NAI violates a provision of the U.S.-EU open skies agreement that governs labor standards. They contend that NAI's plan would create precedent for using low-wage crew members from third countries aboard flights to the United States. […] This report addresses some of the most frequently asked questions related to these two on-going controversies."
Airline Passenger Denied Boarding: Rules and Regulations [April 21, 2017]
"The removal of a seated passenger from a full United Airlines flight on April 9, 2017, has spurred discussions about federal regulation of airline overbooking. Overbooking is a carrier's intentional acceptance of more reservations for a specific flight than the number of seats available on the aircraft. It is not illegal for airlines to overbook, and the practice occurs frequently. In many cases passengers are unaware that a flight is overbooked, because 'no shows' or last-minute cancellations leave sufficient room for all ticketed passengers. The U.S. Department of Transportation (DOT) does not regulate overbooking, aside from requiring airlines to tell passengers that a flight may be overbooked. Rather, federal regulations address oversale-an airline's failure to accommodate passengers holding confirmed reserved tickets on a flight because seats are not available. The aforementioned United flight may not have been overbooked; media reports indicated that all ticketed passengers had been seated, suggesting that there was no problem arising from overbooking. However, once the carrier decided that certain passengers with confirmed reservations needed to give up their seats to make room for airline employees, the flight became oversold. This obligated the carrier to comply with the DOT oversales rule (14 C.F.R. Part 250, known as Part 250)."
Reauthorization of the Federal Aviation Administration (FAA) in the 115th Congress [March 20, 2017]
"The funding authorization for the Federal Aviation Administration (FAA), included in the FAA Extension, Safety, and Security Act of 2016 (P.L. 114-190), expires on September 30, 2017. In addition to setting spending levels, FAA authorization acts typically set policy on a wide range of issues related to civil aviation. This report considers topics that are likely to arise as the 115th Congress debates reauthorization. Most FAA programs are financed through the Airport and Airway Trust Fund (AATF), which is funded by a variety of taxes and fees on air transportation. The financial health of the AATF is generally good. However, changes in airline business practices could pose a risk to revenue. In particular, airlines' unbundling of ancillary fees from airfares is adversely affecting AATF revenue, as only base airfares are subject to the ticket tax that is the largest source of revenue for the trust fund. Reductions in AATF revenue would leave FAA more reliant on appropriations from the general fund."
Airport Privatization: Issues and Options for Congress [Updated March 11, 2021]
From the Summary: "In 1996, Congress established the Airport Privatization Pilot Program (APPP; Section 149 of the Federal Aviation Reauthorization Act of 1996, P.L. [Public Law] 104-264) to increase access to sources of private capital for airport development and to make airports more efficient, competitive, and financially viable. The FAA [Federal Aviation Administration] Modernization and Reform Act of 2012 (P.L. 112-95) increased the number of airports than can participate from five to 10. The FAA Reauthorization Act of 2018 (P.L. 115-254) renamed the program the Airport Investment Partnership Program (AIPP; 49 U.S.C. §47134) and removed the restriction on the number and type of public airports that may participate in the program. However, participation in the program has remained very limited, in good part because major stakeholders have different, if not contradictory, objectives and interests. Only two U.S. commercial service airports have completed the privatization process established under the AIPP. One of those, Stewart International Airport in New York State, subsequently reverted to public ownership. Luis Muñoz Marín International Airport in San Juan, Puerto Rico, is now the only airport with a private operator under the provisions of the AIPP. As of March 2021, there is one other AIPP participant--Hendry County Airglades Airport, a general aviation airport in Clewiston, FL. The airport is to complete its privatization process after receiving FAA approval in September 2019."
China's Steel Industry and Its Impact on the United States: Issues for Congress [September 21, 2010]
"China's steel industry has grown significantly since the mid-1990s. China is now the world's largest steelmaker and steel consumer. In 2009, China produced over 567 million tons of crude steel, nearly half of the world's steel. That was 10 times the U.S. production. The majority of Chinese steel has been used to meet domestic demand in China. However, as its steel production continues to grow, overcapacity is becoming a major concern to Chinese industrial policy makers, as well as steelmakers outside China. Although industry statistics indicate that the Chinese steel industry is not export-oriented, its consistently high output keeps U.S. steelmakers concerned that excess Chinese steel might overwhelm the global market once domestic demand is adequately met. These concerns become increasingly acute as the United States and the rest of the world are in the middle of a slow recovery from the economic recession started in December 2007. The Chinese steel industry is highly fragmented, with more than 1,000 steel producers, which makes the domestic market highly competitive and difficult to control. Its growth also faces constraints such as dependence on imported iron ore and high energy consumption. The Chinese government has shown interest in stepping up its efforts to rein in steel overcapacity and to consolidate and restructure the steel industry. However, it remains to be seen if the government's efforts and measures are to produce sufficient or meaningful results."
Essential Air Service (EAS): Frequently Asked Questions [October 3, 2012]
"On February 14, 2012, President Obama signed into law a four-year reauthorization of Federal Aviation Administration (FAA) programs, the FAA Modernization and Reform Act of 2012 (P.L. 112-95; hereinafter referred to as the 2012 FAA Reauthorization Act). The act is the first longterm authorization for federal civil aviation programs since 2007, and was enacted following 23 short-term extensions. The Essential Air Service (EAS) program was a focus of controversy during this legislative process. The final legislation included policy reforms and changes to the funding of the EAS program. This report provides an overview of the EAS program and discusses the changes introduced by the FAA reauthorization bill."
China's Auto Sector Development and Policies: Issues and Implications [June 25, 2012]
"The automobile industry, a key sector in China's industrialization and modernization efforts, has been developing rapidly since the 1990s. In recent years, China has become the world's largest automotive producer, with annual vehicle output of over 18 million units in 2011. China is now also the world's biggest market for automobile sales. Meanwhile, China's auto sector development and policies have caused concerns in the United States, from automotive trade, China's failure to effectively enforce trade agreements and laws, to market barriers and government policies that increasingly favor Chinese manufacturers, which could affect business operations and prospects of international companies doing business in (or with) China. […] This report provides an overview of China's auto sector development: vehicle production, sales, market drivers, foreign and domestic manufacturers, and automotive trade. It examines how the Chinese government policies and measures guide and often direct China's auto sector development. In addition, this report discusses the prospects and implications for global automakers operating in China."
Offshoring of Airline Maintenance: Implications for Domestic Jobs and Aviation Safety [December 21, 2012]
"The passenger airline industry in the United States has gone through significant changes since deregulation in 1978. In domestic operations, airlines now have almost total freedom to determine which markets to serve and what airfares to charge. Competitive forces, as well as higher fuel prices and changing travel patterns, have placed the industry under financial pressure, as evidenced by numerous mergers and bankruptcies. To stay competitive and profitable, many airlines have joined alliances to expand their global reach and achieve economies of scale. At the same time, price competition has forced airlines to contain costs. One of the practices aimed at keeping costs competitive is the outsourcing of aircraft maintenance, repair, and overhaul (MRO), either domestically or to foreign countries. The practice of outsourcing aircraft maintenance is not restricted to U.S. passenger airlines. Many foreign airlines and cargo carriers also send maintenance work to outside service providers. This report focuses on U.S. passenger airlines because their outsourcing of maintenance, especially to foreign countries such as China and El Salvador, has generated specific concern among Members of Congress. This report analyzes trends in MRO outsourcing and explains the major factors contributing to them. It then considers safety consequences, employment effects, and regulatory implications of increased foreign maintenance of U.S. passenger aircraft."