Rodney Slater has a vision. "I believe that aviation will be for this nation and the world in the 21st century what the construction of the interstate highway system has meant for this country," says the US Department of Transportation (DoT) Secretary. "We tied our nation together as one. With aviation, we will be able to tie together cities and communities of America with the cities and communities of the world. Aviation will be the transportation that ties the world."
The DoT Secretary is an eloquent speaker and an engaging personality with high ideals. He holds the "big picture," comments Jane Garvey, who heads the Federal Aviation Administration and worked with Slater at the Federal Highway Administration. Both have reputations as team builders and consensus seekers and both have helped to cut through some of the bureaucracy at the Department and its Agency. Slater must now use all of his consensus-gathering skills to make his dream a reality and take the open skies policy that he has championed for almost three years to its next dimension. "The ultimate goal is the whole globe," he says.
Not everyone is playing along with that goal - the UK is seemingly the most reluctant to come to the table. But Slater, as Garvey correctly observes, is someone who sets his sights on the big picture. With all eyes on him at the forthcoming DoT aviation conference in Chicago, it will be that higher vision that he will strive for. He knows that many delegates, especially from outside the USA, will be eager to get down to some matters of substance. Is the USA really prepared to open its own skies and allow changes in airline ownership laws, cabotage and the Fly America programme? But resolving such awkward issues is not on the Chicago agenda. "It is very important to deal with the broadest framework possible at this stage," says Slater. "We need to get to the point of the highest common denominator. There are contentious issues to be dealt with, but you don't want to get bogged down by those and lose your ability to take a significant step. We will have to strike the right balance."
The objective of the convention, which the DoT refers to as a "beyond open skies ministerial", is to develop a strategy to expand access to global aviation markets through elimination of what the DoT terms "needless operating restrictions". Slater believes it is time to revisit the ideal of multilateralism. "We want to engage in lively, creative discussions - issues that go beyond open skies and one-to-one pairings and to a universal system," he says. "As we celebrate the tenth anniversary of the pulling down of the Berlin Wall, the time is right to move beyond boundaries. We are hopeful that as we bring nations together at the same meeting room, we will be able to manifest the same spirit of the 1944 Chicago Convention to put in place a policy architecture."
With that lofty goal in mind, an agenda has been put together that is purposely shaped more like a think-tank than a conventional conference. A series of discussion panel breakout sessions will revolve around plenary sessions chaired by Slater. The opening panel will consist of transport ministers from around the world as well as an International Labour Organisation representative. Industry and trade organisation delegates are invited to sign up to each participate in two of six other breakout sessions. A nominated spokesperson from each panel will then take part in the plenary sessions. At the end of the conference, Slater intends to have a declaration that will provide the basis for a multilateral aviation system for the next century.
Delegates might accuse the conference of being deliberately over-reaching in its scope, but it is an accurate reflection of Slater's mode of operation. Such broad goals tally exactly with Slater's desire to be instrumental in creating a new and revolutionary transportation system for the future. Some of the foundations are already being laid. He has asked the DoT to compile a report looking at the long-term transportation needs of the USA. Using a five-year strategic performance plan that was headed by under-secretary Mortimer Downey, and taking a similar 25-year outlook study that was completed in 1974 as a reference point, this report will focus up until 2025. "We will need to look at all issues that might be related to a future transportation system, such as an ageing society in the USA, and all possible technologies, such as nanotechnology, that might be available to us," explains Slater.
The report, which Slater wants completed by the mid-2000 - the Clinton Administration's final year - will also use information gathered at the Chicago conference and will identify what he terms as "stretch goals". Slater already has an idea of the sort of system he is searching for. "It will be international in its reach, internodal in its form, intelligent in its characteristics - using the power of technology, inclusive in its services - and innovative in its scope," he says.
Slater adds that he also wants an "international flavour" injected into the report and he has identified some like-minded colleagues. "I salute Canada's transport minister, David Collenette, because he talks about a transportation system that is safe, seamless, smart and sustainable. I want to encourage that kind of thinking and create an environment in which innovation on the transport front is encouraged," he says.
And Slater believes some of this new way of thinking is already under way. Mention to him the recent extension to the new US-French bilateral, which wraps in the French high-speed train network and allows a combined ticket to be sold, and he smiles broadly. "My vision for the next century is for a safe and sustainable system that does not over-burden the environment, but which enhances it. There have to be connections. That's the beauty of bringing the French high-speed train network into the agreement. The system is wonderful and I do think that we will see something similar happening in the USA very soon. For example, a high-speed train system is going into the north-east corner. Soon we will link the airports at Boston, New York, New Jersey, Baltimore and Washington in much the same way. You have to have a service on the ground which has a speed comparable to that in the air."
From Cotton Country to Capitol Hill
Rodney Slater was named US Secretary of Transportation on 14 February, 1997. His journey to the Capitol began in one of the USA's poorest regions - Marianna, Arkansas - where, at age six, he worked with his mother in a cotton field to earn money to buy his first vehicle - a bicycle.
Graduated from Eastern Michigan University and earned a law degree at the University of Arkansas. From 1987 to 1992 was a member of the Arkansas State Highways Commission, serving as its chairman in 1992. Other positions included director of government relations at Arkansas University and executive assistant for economic and community programmes for then Governor of Arkansas Bill Clinton. Before becoming Secretary, Slater was Administrator of the Federal Highway Administration, where he worked with Jane Garvey, now Federal Aviation Administration Administrator. Only the third Arkansan in US history to hold a position in the President's Cabinet. A former liaison for the Martin Luther King Jr Federal Holiday Commission. Honours include the Albert Schweitzer Leadership Award; the Lamplighter Award for public service from the Black Leadership Forum and the George Collins Award for community service from the Congressional Black Caucus. Named by Ebony as one of the 100 most influential black Americans.Open skies and open competition
Not all of Slater's thinking is on the future however. Almost 40 nations have signed up to the Transportation and State Departments' open skies agenda; most recently Tanzania became the first African country to do so. But Slater's outstretched handshake has not always been eagerly returned, and some industry observers claim that an open skies agreement can tip the competitive environment in favour of those carriers that win the anti-trust immunity deal that is almost always included. Some overseas carriers have also complained that they tend to fare worse than their US competitors. Slater does not deny there is an issue.
"It has definitely been a problem that has been raised; there are also capacity challenges that have to be addressed. But as these agreements play out you clearly have a more competitive and open arena and you remove a lot of government restrictions that snuff out opportunities for new entrants to come into the market. The general by-products are more competition and lower fares. We went through the same experience with deregulation over 20 year ago; we want to see international deregulation, but that will take time."
He sees the Chicago conference as an opportunity to showcase the special relationships that open skies nations have with the USA. It might also provide an opportunity to make a point to "non-club members". "We want to bring together all of our partners - the 38 countries with whom we have open skies agreements and those with whom we have liberalised agreements, such as China and Japan," says Slater. "Then we have a number of countries with whom we are now engaged, such as the African nations. Also the UK, with whom we have got to do something. I hope for a strong delegation from the UK."
Slater seems hopeful that the USA will "ultimately" strike a deal with the UK, while also resigned to the increasing possibility that it will not happen during his tenure. He emphasises the special Anglo-American relationship. "The UK is the number one foreign destination for US travellers and represents our number one ally in many, many respects, from trade to seeking a unified, prosperous Europe that is at peace," he says. "I am hopeful that we can enjoy the benefits of these positive relationships. But it must be said that this is the most restrictive agreement we have with any nation. I think we can get a cargo agreement in the short term and then move on."
Slater says the DoT would also be willing to move on and deal with Europe as an entity in multilateral discussions, but he makes clear that the USA cannot put its open skies ambitions on hold while the European Union works out its stance on this issue. "If the EU was granted authority to negotiate on behalf of all Europe, we would welcome that. But until that becomes a reality, then we will negotiate with individual countries."
Global alliances also require the Secretary's attention today rather than tomorrow. "Alliances have already changed the environment," he points out. "Aviation is a unique service. It is about people who need to be tied into a network and alliances help to facilitate that. Within that, clearly, you also want competition. So you do have issues that alliances bring to light. We want to have a discussion about those issues. We will get into that at the Chicago conference. We don't want a knee-jerk reaction here; there is a lot of good coming from alliances, such as the seamless travel experience. Alliances are affording people the opportunity to enjoy the benefits of a network. Alliances help to facilitate that network and we support them. But you want to make sure that in the development process, you maintain and enhance a pro-consumer and pro-competition environment."
BEYOND OPEN SKIES
The Aviation in the 21st Century Beyond Open Skies Ministerial will take place on 5-7 December and is expected to attract 500 delegates, including transportation ministers, and representatives from regulatory authorities, trade associations, airlines and airports. The agenda lists a number of principal purposes of the conference, including:-
The creation of a forum for world aviation leaders to focus co-operatively on critical aviation issues for the next century. To discuss eliminating operating restricitions and barriers that restrict aviation growth To encourage new ways of dealing with aviation issues, such as plurilateral or multilateral agreements To bring together leaders who have committed to open skies policies and review the next steps To develop a common vision for aviation in the 21st Century and a path to get there. The conference will take the form of a series of concurrent panel sessions interjected with plenary sessions chaired by Secretary Slater and with one designated spokesperson from each panel. At the closing plenary, transportation ministers will identify broad areas of agreement in a joint statement and establish a framework for action.Domestic policy
On home ground, Slater and his Department have been accused of overstepping the mark in their efforts to maintain competition within the USA's entrenched hub-and-spoke system. Asked whether the DoT's controversial anti-predatory behaviour guidelines for the industry are regulatory in their flavour, he answers: "Definitely no!" He argues that the DoT's stance on this issue was in step with the Administration's approach in 1993 when it called on the industry to work together and strengthen the economy.
"We clearly could have brought in regulation, but instead we proposed a policy so that we could legitimately characterise anti-competitive or predatory behaviour," he says. "We laid out our proposal and invited comment, then adjusted it appropriately according to the feedback. I am personally quite pleased with the result and the feedback. There have been lots of replies and lots of discussion in Congress. I have had a lot of one-to-one meetings with airline chief executives and airline representatives as well as group meetings through the ATA."
The results are tangible and positive, says Slater. DoT responsibilities in this area have been clarified and a report, requested by Congress, is in the works. "We have learned how to balance our responsibilities here. We are very pleased that we have seen an increase in opportunities for start-ups and low-cost carriers, such as JetBlue. There was clearly a dearth of opportunities and there was a loss of momentum for startups. The atmosphere has changed because we have made a statement about what is acceptable and what is not acceptable. I feel very, very good about that. We have never wanted to be heavy-handed, but we wanted results and the chief result has been to enhance opportunities for competition for everyone. We have created a pro-consumer, pro-competition environment which was our goal."
Pro-competition is also a key ingredient that the DoT intends to stir into the FAA's Reauthorisation Bill. The legislation, however, is proving to be frustratingly elusive. Hopes were high in November that the Bill might be passed, providing the FAA with funding critical to its long-term plans and allowing it to take the first steps towards metamorphosis into an efficient and business-like agency. The Bill, however, was once more entangled in the Congressional lobbying and debate process and could not be pushed through.
Faced with the painful fact that the Reauthorisation fight continues, Slater stresses the key benefits he is seeking. "First, to enhance safety. That is always a number one priority. Second, to increase capacity and ensure competition. Third, to enhance efficiency through modernisation of the air traffic control (ATC) system and through a more business-like approach by the FAA. That includes the creation of a chief operating officer to manage the day-to-day operations of the ATC system," he says.
The DoT has peppered pro-competition and pro-consumer tags throughout the Bill. For instance, it would allow local authorities the choice to raise their passenger facility charges - a flat rate tax that airports can levy on tickets - but they must also prove that an increase would enhance competition. The DoT has a pilot programme to invest in small and medium airports, such as Syracuse, Buffalo and Richmond. "These airports have the highest airfares in the country. We must ask what it is we can do to help them and to create a more competitive environment?" Posing such questions has not always won Slater favour with the major US carriers, but he is determined to be seen as the DoT leader who safeguarded competition.
The legacy he would like to leave is as a catalyst for a new, global transportation system. "We have had the wheel, the railroad, the steam engine, the jet engine. All major innovations. What I want people to be asking is what's next? It's incumbent upon us all to do this, we want to be visionary and vigilant at the DoT. That's how we see ourselves and it's how we want to be seen."
Source: Airline Business
