The face of special-interest politics in Washington is changing, and American Airlines is wearing a smile. An overhaul of the Senate Commerce Committee means the airline finds itself with new-found clout. The rise of Arizona Sen John McCain to chairmanship of the committee is a big win for American Airlines. And who loses? United Airlines. That portends good news on Capitol Hill for the proposed super-alliance of American Airlines and British Airways.
United is left with no real patron on the powerful committee, especially on international aviation matters. McCain replaces former South Dakota Sen Larry Pressler, who lost his re-election bid and was considered a key United ally.
Gone, too, is Pressler aide Mike Korens, who worked the Hill feverishly on behalf of United. On Pressler's behalf, he rallied support for the efforts of United (and Federal Express) to protect flying rights in the lucrative Japan market. And Korens shepherded congressional support for the US-Germany open skies pact and United's link with Lufthansa.
Pressler meant potential trouble for the AA-BA alliance. Before losing his job, Pressler talked tough about the US keeping a hard line against the British in the open skies talks and demanding important concessions about opening up slots at Heathrow. Pressler also spoke for anti-alliance protests by Virgin Atlantic chairman Richard Branson.
It now seems no lawmakers will emerge as strong voices of criticism against the planned alliance, and the mega-alliance should have a smooth ride, at least on Capitol Hill.
McCain has a bit of a grudge against United. His pet issue has been getting rid of a noise rule that bans carriers like his home-state airline, America West, from long-distance flights from Washington's National Airport, just minutes from Capitol Hill. The rule hits home, literally: it means McCain can't take a nonstop flight from National when he goes back to Phoenix. McCain was embarrassed when he failed to get the rule changed two years ago; he blames United for lobbying against the change, in an effort to protect its hub at Dulles, about 45 minutes out of Washington.
Then the US cut a mini-deal with the UK, giving United the right to fly to Heathrow from Chicago. American protested. McCain protested - and he tried to scuttle the deal as too partisan. In that skirmish, McCain lined up with Sen Kay Bailey Hutchinson of Texas, American Airlines' home state. McCain's ascendancy beefs up Hutchinson's clout on behalf of American interests. At the confirmation hearing for new transportation secretary Rodney Slater, she wasted no time telling him she wanted service between Dallas and Heathrow - now. He all but promised her she wouldn't be disappointed.
'American has it made,' says a Republican Senate aide. 'United is going to have a rough Congress.' As chairman of the Senate aviation subcommittee while Pressler headed the commerce committee, McCain often jockeyed with Pressler for the spotlight on aviation issues. Now, he doesn't have to share. He carries a big stick: McCain has established a high profile, pushing campaign finance reform and often standing at the side of former Sen Robert Dole during Dole's presidential bid.
Washington Sen Slade Gorton took the job as the new aviation subcommittee chairman, but Senate aides expect him to be much more low-key than McCain was in that job. Boeing is his most important corporate constituent, and the company's lobbyists tell congressional aides they're in no rush for the senator to take sides on issues that could upset their important airline customers. Anyway, Gorton cares about something quite off the radar screen: winning passage of legislation that would limit the amount of money awarded in product-liability lawsuits.
Meanwhile, Delta Air Lines still has strong pull with ranking Democratic commerce committee member Sen Fritz Hollings of South Carolina. Delta lobbyist Scott Yohe maintains his ties with Hollings aide and veteran Democratic senior counsel Sam Whitehorne.
Flush with new spirit, American is also scoring points around town with its affable new chief lobbyist, Will Ris, who last represented the airline and other clients at the powerful Democratic lobbying shop of the Wexler Group, home to former Carter administration official Anne Wexler.
Ris is making up with gun-shy government officials who have long said the airline maintained the subtlety of a bull raging through a china shop. Ris is even an alumnus of the Senate Commerce Committee, where he was chief counsel in the early years of airline deregulation. He recently called a Senate aide alienated by AMR lobbyists, to implore: 'We've had a rocky road. I want to start working together.'
At the Transportation Department, Ris has won over Charles Hunnicutt, assistant secretary for aviation and international affairs. That's important, since transportation secretary Slater's primary interest is highways and he will rely on his staff for aviation input.
Even though Ris is good friends with Mark Gerchick, deputy assistant secretary for aviation and international affairs, that probably won't get him far: Hunnicutt has been pushing Gerchick out of the way, recently going to Tokyo himself for high-level negotiations even though the two had informally divided the world so Hunnicutt would handle Europe and Gerchick Asia. Gerchick has told friends he is looking for employment elsewhere.
One irony remains: Ris' predecessor, Ed Faberman, has an interesting new portfolio of clients: first, Dallas/Love Field, home to American rival Southwest Airlines which wants various flying restrictions lifted; and second, a coalition of new entrant and niche carriers like ValuJet Airlines and Reno Airlines, which want to hamstring major airlines by complaining about alleged anti-competitive practices. One of Faberman's primary targets? American Airlines, of course.
Source: Airline Business
