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Gavel slams: Airbnb not eligible for privileged tax treatment

April 15, 2019 by Forimmediaterelease

A report released on behalf of the American Hotel and Lodging Association (AHLA) calls on state and local government leaders to reject Airbnb’s future pursuit of voluntary collection agreements (VCAs) and look to the Wayfair decision as a pathway to cancel current VCA agreements and bring Airbnb up to code with current industry tax standards and regulations.

AHLA released a new report on National Tax Day, conducted by former Director of the Montana Revenue Department Dan Bucks, which clearly demonstrates why the Supreme Court’s Wayfair vs. South Dakota decision last year eliminates the need for state and localities to enter into “voluntary collection agreements” (VCAs) with Airbnb and provides the legal framework and incentive to tax Airbnb like every other U.S. online business now.

“Airbnb no longer qualifies—if it ever did—for privileged treatment by tax agencies as a ‘voluntary collector,’” states Bucks in the report. “This treatment gives Airbnb an unfair advantage in the marketplace by creating a tax and regulatory haven for Airbnb lodging operators. Post-Wayfair, Airbnb’s “voluntary agreements” are now a relic of a past legal premise that no longer exists.”

Bucks urges government leaders to begin the process of terminating existing “voluntary” tax agreements with Airbnb in coordination with state adoption of “general marketplace provider” legislation. Bucks went on to say that disparities between the tax treatment of Airbnb and other online businesses pose a legal risk to states and localities.

“Airbnb has been making back-room deals and strong-arming state and local jurisdictions into ‘voluntary’ tax deals with no transparency, oversight or auditing capability for years,” stated Chip Rogers, President and CEO at AHLA. “Airbnb, and other short term rental platforms need to abide by the same rules as all other law-abiding, tax-paying businesses in the industry.”

AHLA urges state and local government leaders to terminate Airbnb’s voluntary tax deals and instead institute a tax policy that will collect taxes from Airbnb and its operators to ensure an even playing field and transparency for taxpayers. In San Francisco, home of Airbnb’s corporate headquarters, the company agreed to pay back taxes and collect city taxes from its hosts.  AHLA urges other states and localities to follow suit.

“Airbnb’s secret tax agreements are hurting communities across America by shortchanging their schools, infrastructure, and other public services” stated Rogers. “Airbnb’s special treatment needs to end.”

The American Hotel and Lodging Association (AHLA) is the singular voice representing every segment of the hotel industry including major chains, independent hotels, management companies, REIT’s, bed and breakfasts, industry partners and more.

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Aviation Safety: Fatigue management

March 28, 2019 by Forimmediaterelease

In aviation operations, managing fatigue is important because it diminishes an individual’s ability to perform almost all operational tasks. This clearly has implications for operational efficiency, but in situations where individuals are undertaking safety-critical activities, fatigue-effected performance can also have consequences for safety outcomes. Fatigue is a natural consequence of human physiology.

Because fatigue is affected by all waking activities (not only work demands), fatigue management has to be a shared responsibility between the State, service providers and individuals.

A brief history of flight and/or duty limitations

For most workers, hours of work are part of the working conditions and remuneration packages established through industrial agreements or social legislation. They are not necessarily established from a safety perspective.

However, the need to limit pilots’ flight and duty hours for the purpose of flight safety was recognized in ICAO Standards and Recommended Practices (SARPs) in the first edition of Annex 6 published in 1949.  At that time, ICAO SARPs required the operator to be responsible for establishing flight time limits that ensured that “fatigue, either occurring in a flight or successive flights or accumulating over a period of time, did not endanger the safety of a flight”. These limits had to be approved by the State.

By 1995, ICAO SARPs required States to establish flight time, flight duty periods and rest periods for international flight and cabin crew. The onus was on the State to identify “informed boundaries” that aimed to address the general fatigue risk for flight operations nationally. At no time have ICAO SARPs identified actual flight and duty hours because it had proven impossible to identify global limits that adequately addressed operational contexts in different regions.While ICAO SARPs apply only to international operations, many States also chose to establish similar flight and duty time limitations for domestic operations. States generally used the same flight and duty limits for helicopter crew as for airline crew.

The fallacy of flight and/or duty limitations is that staying within them means that operations are always safe. Buying into this fallacy suggests that scheduling to the limits is enough to manage fatigue-related risks. However, more recent SARP amendments related to prescriptive limits have highlighted the responsibilities of the operator to manage their particular fatigue-related risks within the limits using their SMS processes.

And then there was FRMS….

Fatigue Risk Management Systems (FRMS) represent an opportunity for operators to use their resources more efficiently and increase operational flexibility outside the prescriptive limits, whilst maintaining or even improving safety. In implementing an FRMS, the onus shifts to the operator to prove to the State that what they propose to do and how they continue to operate under an FRMS, is safe.

In 2011, SARPs enabling FRMS as an alternative means of compliance to prescriptive limitations were developed for aeroplane flight and cabin crew (Annex 6, Part I).  At the time of development, it was necessary to address concerns that airline operators would take this as an opportunity to schedule purely for economic benefits at the cost of safety. Therefore, while often referred to as “performance-based” approach, the FRMS SARPs are nevertheless very prescriptive about the necessary elements of an FRMS and require the explicit approval of an operator’s FRMS by the State.

Since then, similar FRMS SARPs were made applicable for helicopter flight and cabin crew in 2018 (Annex 6, Part III, Section II).

But what about air traffic controllers?

Despite their obvious impact on flight safety outcomes, ICAO SARPs have never required the hours of work to be limited for air traffic controllers even though some States have had hours of duty limitations for air traffic controllers for many years. This is about to change. Amendments to Annex 11, becoming applicable in 2020, will require that ICAO States establish duty limits and specify certain scheduling practices for air traffic controllers. As for international airline and helicopter operations, States will have the option of establishing FRMS regulations for air traffic service providers.

Fatigue Management SARPs today

Today, ICAO’s fatigue management SARPs support both prescriptive and FRMS approaches for managing fatigue such that:

  • Both approaches are based on scientific principles, knowledge and operational experience that take into account:
    • the need for adequate sleep (not just resting while awake) to restore and maintain all aspects of waking function (including alertness, physical and mental performance, and mood);
    • the circadian rhythms that drive changes in the ability to perform mental and physical work, and in sleep propensity (the ability to fall asleep and stay asleep), across the 24h day;
    • interactions between fatigue and workload in their effects on physical and mental performance; and
    • the operational context and the safety risk that a fatigue-impaired individual represents in that context.
  • States continue to be obliged to have flight and duty time limitations but are under no obligation to establish FRMS regulations. Where FRMS regulations are established, the operator/service provider, can manage none, some or all of its operations under an FRMS, once approved to do so.
  • Prescriptive fatigue management regulations now provide the baseline, in terms of safety equivalence, from which an FRMS is assessed.

In practice…

In Airlines:  The Fatigue Management amendments to the Annex 6, Part I, in 2011 led many States  to reviewing their prescriptive limitation regulations for pilots based on scientific principles and knowledge (refer text box) and identifying further requirements for operators to manage their fatigue-related risks within the prescribed limits.  Fewer States have reviewed their prescriptive limitation regulations for cabin crew.

In every case, despite a refocus on providing adequate opportunities for sleep and recovery, altering existing flight and duty limitations remains a very sensitive and difficult task because it impacts income and work conditions as well as the constraints of pre-existing employment agreements. It is made even more challenging for States whose flight and duty time limitations are legislated.

Where States have reviewed their prescribed flight and duty limits, the increased awareness of the relationship between sleep and performance has served to highlight the responsibilities of the individual crew member and the airline to manage fatigue, and in some cases have resulted in the prescribed limits sitting alongside a set of regulations  that make these responsibilities more explicit, e.g. the FAA’s Fatigue Risk Management Program, EASA’s Fatigue Management requirements, CASA’s Fatigue Management requirements and CAA South Africa’s Fatigue Management Program.

The scientific principles of fatigue management

 

  1. Periods of wake need to be limited.  Getting enough sleep (both quantity and quality) on a regular basis is essential for restoring the brain and body.
  2. Reducing the amount or the quality of sleep, even for a single night, decreases the ability to function and increases sleepiness the next day.
  3. The circadian body-clock affects the timing and quality of sleep and produces daily highs and lows in performance on various tasks.
  4. Workload can contribute to an individual’s level of fatigue.  Low workload may unmask physiological sleepiness while high workload may exceed the capacity of a fatigued individual.

Many States have established, or plan to establish, FRMS regulations, often at the encouragement of their airlines. The FRMS challenge for States continues to be whether they have the resources to provide the necessary oversight from a scientific and performance-based perspective, particularly when the same regulations usually apply to a variety of domestic flight operations. While FRMS requirements are onerous and time-consuming, the few airlines who have so far managed to get FRMS approval for particular routes have found the operational flexibility gained to be worth the effort.

General scheduling principles

 

  1. The perfect schedule for the human body is daytime duties with unrestricted sleep at night. Anything else is a compromise.
  2. The circadian body clock does not adapt fully to altered schedules such as night work.
  3. Whenever a duty period overlaps a crew member’s usual sleep time, it can be expected to restrict sleep. Examples include early duty start times, late duty end times, and night work.
  4. The more that a duty period overlaps a crew member’s usual sleep time, the less sleep the crew member is likely to obtain. Working right through the usual nighttime sleep period is the worst case scenario.
  5. Night duty also requires working through the time in the circadian body clock cycle when self-rated fatigue and mood are worst and additional effort is required to maintain alertness and performance.
  6. The longer a crew member is awake, the worse their alertness and performance become.
  7. Across consecutive duties with restricted sleep, crew members will accumulate a sleep debt and fatigue-related impairment will increase.
  8. To recover from sleep debt, crew members need a minimum of two full nights of sleep in a row. The frequency of recovery breaks should be related to the rate of accumulation of sleep debt.
  9. Keep short notice changes to a minimum, especially where they infringe or overlap the  Window of Circadian Low (WOCL).
  10. Duty periods associated with high workload (such as multiple, challenging landings and in marginal weather conditions) may need to be shortened and extensions avoided where at all possible.

In Helicopter Operations:  For some States, the recent amendments to Annex 6, Part II (Section II) have highlighted the need to establish flight and duty time limits for helicopter crew members that better relate to the context of helicopter operations, rather than using the same limits as for airline pilots. Within those limits, the helicopter operator is expected to build crew schedules that use both fatigue science and operational knowledge and experience.

A new fatigue management guide for helicopter operators, currently under development in ICAO, identifies general scheduling principles based on fatigue science to guide helicopter operators in building “fatigue-aware” schedules that offer optimum opportunities for sleep and recovery (refer text box).

The particular challenge in helicopter operations, however, is that so many helicopter operations are unscheduled. While some helicopter operators will be able to operate within prescribed limits and effectively manage fatigue risks using an SMS, many types of helicopter operations, such as those that require unscheduled, immediate responses, possibly in high-risk settings, will benefit from the operational flexibility and safety gains of an FRMS.

In Air Traffic Control Services: Next year, States are expected to have established prescriptive work hour limits for air traffic controllers, while FRMS regulations remain optional and can be established at any time. However, the nature of the relationship between the Air Navigation Services Provider (ANSP) and the State will influence how the implementation of fatigue management regulations will unfold. In most cases, the State provides oversight of only one ANSP and although there is a current trend for privatisation, many of the ANSPs are fully or partially owned by the State.

In an industry sector that is often largely self-regulated, the distinction between a prescriptive fatigue management approach and FRMS may become blurred. However, a refocus on safety and not only organisational expediency or personal preference is likely to have substantial effects on the way controllers’ work schedules are built in ANSPs across the world. This is a “watch this space”.

Fatigue Management Guidance for ICAO States

The Manual for the Oversight of Fatigue Management Approaches (Doc 9966) received another update this year – Version 2 (Revised) – and an unedited version (in English only) will shortly replace the current manual available for download here. On this website you can also find the following:

  • Fatigue Management Guide for Airline Operators (2nd Edition, 2015)
  • Fatigue Management Guide for General Aviation Operators of Large and Turboject Aeroplane (1st Edition, 2016)
  • Fatigue Management Guide for Air Traffic Service Providers (1st Edition, 2016)
  • The Fatigue Management Guide for Helicopter Operators (1st Edition) is expected to be available later this year.

The Fatigue Management Guide for Helicopter Operators (1st Edition) is expected to be available later this year.

The author, Dr. Michelle Millar, is the Technical Officer (Human Factors) and the NGAP Program Manager at ICAO. She heads the ICAO FRMS Task Force and has been involved in the development of ICAO fatigue management provisions since 2009. Her academic background is in sleep, fatigue and performance.

 

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Passenger satisfaction at baggage collection jumps to new high with mobile notifications

March 25, 2019 by Forimmediaterelease

While the adoption of technology has improved passenger satisfaction across the airport journey, the biggest jump by far over the past year was at baggage collection. 2019 Passenger IT Insights shows that passengers are demanding more mobile services in relation to their baggage and where these are available, satisfaction levels have surged.

The research shows that 26% of passengers in 2018 used their mobile device to receive status updates on their baggage at arrival, up from 14% in 2017. At the same time, there is a growing demand from passengers to receive more baggage information via their mobile devices. A majority of passengers said they would definitely use mobile notifications providing information on baggage at arrival while a similar proportion said they would use their mobiles to track their bags or to report mishandled baggage.

These mobile services have dramatically improved passenger satisfaction levels. In 2018, those travelers who used their mobile to receive updates at baggage collection were 8.6% more satisfied than those who relied on traditional voice announcements or flight information screens for information. In fact, those who relied on traditional voice or screen announcements for updates ranked baggage collection as one of the lowest points in their journey while those receiving mobile updates perceived this step as one where they were most satisfied.

Peter Drummond, Director of Baggage at SITA, said: “Today airports and airlines are increasingly tracking bags at key points across their journey. While this tracking data is primarily used to provide better oversight of baggage and reduce mishandling, many operators are providing some, or all, of this information to passengers as a mobile service. This is being done either through the airline or airport mobile app or other notifications such as SMS.

“As we have seen from the survey, this service has a tremendously positive impact on passengers’ airport experience. It provides a significant positive boost to the way they perceive their travel, while reducing anxiety around baggage. It is a strong endorsement of the benefits of baggage tracking in addition to the improvements in mishandling rates we have already seen where tracking solutions are in place,” said Drummond.

A potential force driving adoption of mobile baggage services is the growing number of checked bags in 2018.

Drummond added: “More than 4.3 billion bags were checked in by passengers globally. This is an average of 1.2 bags per person, up from 1.08 bags per passenger in 2017. The rise in checked baggage is likely to drive demand for more services as passengers want to know where their bags are at all times. Those airports that track bags across the journey are well placed to offer this service.”

The key findings of the report are based on a survey of passengers from 20 countries across the Americas, Asia, Europe, Middle East and Africa, representing over 70% of global passenger traffic.

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FlyersRights asking DOT to regulate airline change fees

March 22, 2019 by Forimmediaterelease

When Congress deregulated airline prices, routes, and schedules in 1978, Congress preserved the DOT’s responsibility to ensure that international prices and fees remained “reasonable.” This little-known provision of U.S. law means that the FAA should strike down any change fees that are unreasonable and have no relation to cost. See 49 U.S.C. § 41501, DOT-OST-2015-0031 at regulations.gov.

FlyersRights.org has filed a notice of appeal against the US Department of Transportation (DOT) in the D.C. Circuit Court of Appeals over its refusal to regulate international change fees – Flyers Rights Education Fund v. U.S. Department of Transportation (CADC).

Passengers are helpless when it comes these exorbitant change fees that can range up to $500 or more. Domestic consolidation and international alliances in the airline industry have combined to give passengers fewer options when travelling. As airline profits soar, the airlines continue to increase change fees by hundreds of dollars while publicly declaring that these fees are a major profit generator.

In 2015, FlyersRights.org filed a rulemaking petition demanding that the DOT enforce the Reasonableness Law for change fees on international flights. On February 1, 2019, the DOT denied this petition. In refusing to regulate despite the Reasonableness Law, the DOT said it relied on “market forces” to handle all air travel pricing and policy. See DOT-OST-2015-0031-0035. FlyersRights.org is represented in the court appeal by Joseph Sandler, Esq. of Sandler Reiff Lamb Rosenstein & Birkenstock P.C. of Washington, D.C.

Paul Hudson, President of FlyersRights.org, reflected on the past few years, “The DOT has demonstrated a tremendous ability to allow the airlines and airplane manufacturers to dictate enforcement policies. The DOT has ignored the law by failing to guarantee that international change fees are reasonable and related to cost. At a time when flights are routinely filled to capacity, airlines extort passengers into paying hundreds of dollars to change flights so that the airline can go back and sell the same ticket, usually at a higher price. The airlines reach into passengers’ checkbooks because the DOT refuses to follow the law.”

FlyersRights.org most recently took the FAA to federal court over the denial of its 2015 seat size rulemaking petition. The seat litigation has increased scrutiny on the FAA’s relationship with Boeing and other airplane manufacturers, has led to Congressional mandates to establish seat size standards and to review certification procedures, and has prompted a DOT Inspector General Investigation into the FAA’s oversight of emergency evacuation testing and certification.

Paul Hudson, member of the FAA Aviation Rulemaking Advisory Committee since 1993, noted “The DOT and FAA keep proving, time and time again, that they will allow Boeing and the airlines to dictate policy both in the safety and consumer protection realms. From ignoring concerns over the Boeing 737 MAX 8 and 787 Dreamliner, to rubber stamping manufacturers’ emergency evacuation testing, to decreasing enforcement of consumer protections to historical lows, the DOT has surrendered its duty to ensure safe air travel and reasonable protections for passengers.”

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Trump appoints former Delta Air Lines executive new FAA chief

March 20, 2019 by Forimmediaterelease

Former chief of flight operations for Delta Air Lines was appointed by President Trump to run the Federal Aviation Administration, currently under scrutiny for allowing the troubled Boeing 737 MAX 8 to carry passengers.

Steve Dickson, who spent 27 years with Delta before retiring in October as senior vice president of flight ops, is joining the agency in the midst of its most turbulent period in recent history, with Transportation Secretary Elaine Chao having requested an audit of its certification of the aircraft, two of which have been involved in horrific crashes over the past five months.

While Dickson’s name had reportedly been under consideration since November, Trump allowed the FAA to go without an official head for over a year following the end of Obama-era agency chief Michael Huerta’s term. Daniel Elwell, who led the FAA under George W. Bush, has been running the agency in an interim capacity without being confirmed by the Senate.

The man from Delta will be the first FAA head in three decades to have come directly to the job from a senior airline position – something of a pattern for Trump, who has recruited a number of cabinet members from the ranks of corporate America to staff the agencies tasked with regulating their former employers. Acting Defense Secretary Patrick Shanahan, who previously worked for Boeing, is just one such appointment.

The FAA is under fire for allowing Boeing to conduct crucial parts of its own safety testing and certification process. A group of current and former engineers from both the regulator and the aircraft manufacturer claims the FAA merely took Boeing’s word that their new plane was safe – an oversight that other countries then allegedly magnified by conducting only minimal testing of their own, assuming the US watchdog wouldn’t have certified an unsafe aircraft. Boeing is also accused of “cutting corners” to quickly certify the plane in order to compete with the new Airbus A320 Neo – between them, Airbus and Boeing comprise the lion’s share of all passenger airliners – and of failing to properly train pilots to work with the onboard systems.

Ethiopian Airlines Flight 302 crashed earlier this month shortly after taking off from Addis Ababa en route to Nairobi, killing all 157 people on board after diving unexpectedly into a field. It was the second Boeing 737 Max 8 to meet such a fate in under six months, and investigators have pointed to “clear similarities” between this crash and the Lion Air Flight 610 disaster in October, which killed 189 people.

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