Da Aff Agenda Politics Addendum 5

WNDI 2008

1 Agenda Politics DA Addendum Aff

Agenda Politics DA Addendum Aff Agenda Politics DA Addendum Aff............................................................................................................................1

Agenda Politics DA Addendum Aff..............................................................................................1 Airlines Turn- Links....................................................................................................................................................2

Airlines Turn- Links......................................................................................................................2 Airlines Turn...............................................................................................................................................................3

Airlines Turn...................................................................................................................................3 Airlines Collapse=US Econ Collapse.........................................................................................................................4

Airlines Collapse=US Econ Collapse............................................................................................4 Oil Spec Bill key to solve Alternative Energy............................................................................................................5

Oil Spec Bill key to solve Alternative Energy..............................................................................5

WNDI 2008

2 Agenda Politics DA Addendum Aff

Airlines Turn- Links Oil Speculation Bill Key to Airlines- Low Fuel Prices Sunnucks, Mike. (Business Journal writer). Phoenix Business Journal Online. “Partisan differences over drilling block airline-backed energy plans”. Date Published: 25 July 2008. Date Accessed: 26 July 2008. . In the U.S. Senate, the same partisan scenario is playing out with an airline-backed bill aimed at curtailing oil price speculation. Airlines (including US Airways, American Airlines and United Airlines) favor legislation putting more rules and restrictions on oil price speculation. They contend that commodity speculators are driving up crude oil prices. U.S. Senate Majority Leader Harry Reid,, D-Nev., has a bill aimed at oil price speculation but the plan is being blocked by Republicans (including U.S. Sen. Jon Kyl of Arizona). The Republicans favor offshore and ANWR drilling to boost domestic oil supplies and want those ideas added to other energy bills. Democrats tend to oppose increased domestic drilling and do not want floor votes on such proposals. GOP Senators have been successfully filibustering the speculation plan, including via a vote Friday. Both presidential contenders (Arizona's John McCain and Illinois' Barack Obama) missed that vote. Public opinion polls show support for new rules on oil price speculation and increased domestic drilling. Gasoline prices average $4.01 in the U.S., according to AAA. That is down six cents from a month ago but up from $2.94 per gallon a year ago. Phoenix-area gas prices stand at $3.98 per gallon compared with $4.13 a month ago and $2.77 a year ago, according to AAA. High fuel prices have been hammering the airline industry, prompting financial losses from US Airways, Northwest Airlines and other carriers.

Oil Speculation Bill Saves Airlines and Airlines are key to the economy American Society of Travel Agents. ASTA.com. “ASTA to Support ‘Stop Excessive Speculation’ Act”. Date Published: 22 July 2008. Date Accessed: 26 July 2008. < http://www.asta.org/News/PRDetail.cfm ? ItemNumber=4162>. Every American is aware of the startling rise in fuel prices in the first half of 2008. Unfortunately for business and leisure travelers alike, these prices are affecting not only the cost of driving, but also the cost of air and cruise ship travel. These realities pose serious difficulty to the travel industry-a key driver of the American economy-and to the travel agents who assist millions of Americans each year with their travel needs. Faced with these challenges, U.S. voters are expecting action from their representatives in Congress. One area of opportunity for Congressional involvement is that of energy market oversight. The unchecked participation of large-scale institutional investors in energy markets has contributed to the skyrocketing prices of recent months. ASTA is pleased that Majority Leader Harry Reid (D-NV), Sen. Dick Durbin (D-IL), Sen. Byron Dorgan (D-ND), Sen. Patty Murray (D-WA), and Sen. Chuck Schumer (D-NY) have responded to these calls for action by introducing S. 3268, the Stop Excessive Speculation Act. By placing reasonable limits on large, over-the-counter trades and by closing the loopholes that have permitted traders to make large-scale speculative trades through overseas exchanges, the bill will place sensible checks on the influence of speculators. The bill also authorizes the resource-strapped Commodity Futures Trading Commission (CFTC) to hire additional agents to monitor the markets for signs of price manipulation or excessive speculation. Finally, S.3268 will increase transparency and disclosure requirements so as to equip the CFTC to more effectively carry out its proper role of commodity market oversight.

WNDI 2008

3 Agenda Politics DA Addendum Aff

Airlines Turn Failure to pass the Oil Speculation Bill dooms the Airline Industry Geewax, Marilyn. (Staff Writer). Atlanta Journal-Constitution Online. “Capitol Hill all uphill for airlines lately”. Date Published: 27 July 2008. Date Accessed: 26 July 2008. < http://www.ajc.com/business/content/business/stories /2008/07/25/lobbying_airlines.html>. Last week, financially battered airlines implored the Senate to help lower fuel prices by limiting excessive oil speculation. But by week's end, debate on the Stop Excessive Energy Speculation Act of 2008 was tied up in partisan knots over whether to add oil drilling amendments, making it unlikely any restraints on speculation could pass before autumn. And so it goes for the airlines on Capitol Hill. Whether the issue is curbing oil speculation, shifting more of the aviation tax burden to corporate jets, quickly modernizing the air traffic control system or suspending fuel taxes, the airlines aren't getting help from Washington. "On the big issues, I don't think they have had much success," said Kevin Mitchell, founder of the Business Travel Coalition, a group representing corporate travel buyers. It wasn't always so tough for the industry. In the days immediately following Sept. 11, 2001, Congress rushed to help the airlines, which had been forced by the government to ground domestic flights for two days after terrorist attacks. By Sept. 22, President Bush had signed a $15 billion bailout package. Today, the U.S. airline industry is facing a new financial crisis, this one caused by soaring oil prices. Last year, the airlines spent $31 billion for jet fuel and made an operating profit of $5 billion. This year carriers likely will spend about $52 billion on fuel, and when it comes to losses, "the numbers will be huge," said Phil Baggaley, an airline analyst for the Standard & Poor's credit rating firm. Despite the growing crisis, members of Congress have not gotten on board with the industry. Lawmakers could help cut fuel costs by rushing to modernize the air traffic control system to reduce flight delays. Instead, work on the NextGen system is being delayed along with approval of a long-term budget for the Federal Aviation Administration. Also, the Senate has refused to confirm Bobby Sturgell, Bush's choice to serve as permanent FAA administrator.

WNDI 2008

4 Agenda Politics DA Addendum Aff

Airlines Collapse=US Econ Collapse Airlines are key to the US economy Jackovics, Ted. (Staff Writer). Tampa Tribune Online. “Soaring Fuel Costs Carry Risk Of Airline Collapse”. Date Published: 24 June 2008. Date Accessed: 27 July 2008. . The impact of skyrocketing aviation fuel prices could result in massive job losses, declining business activity and reduced tourism as early as the second half of 2008, the Business Travel Coalition, a Radnor, Pa.,-based business consumer group, warned Monday. With airlines paying about twice as much for fuel this year as last year, fuel costs have increased to more than 40 percent of airlines' operating expenses, which could push air travel far beyond affordability for the majority of the traveling public, the coalition report stated. "The impact ... goes far beyond charging $2 for a can of Coke or $15 for a checked bag - two consumer annoyances that will have little impact on the airlines' prospects for survival and should not distract anyone from the catastrophe that is looming on the near horizon," the report stated. If a single major airline failed, the daily travel of 200,000 to 300,000 passengers would be affected, and the failure of multiple airlines would paralyze the country, the report stated. The coalition report is not alone in predicting dire economic consequences for the aviation industry if some remediation from fuel prices is not found quickly. U.S. airlines are expected to lose $10 billion in 2008, a loss equal to or larger than the worst year in the industry's history, Air Transport Association President James May told a U.S. Senate committee last week. "If Congress does not act soon, this country will not have a viable airline industry," May said. "We need action, not more studies or expert commissions." Without immediate action to reduce fuel costs, the industry faces the economic equivalent of a major blackout this year or early next year, coalition chairman Kevin Mitchell said in a release Monday accompanying his group's report. Mitchell is among five travel industry officials on a preliminary witness list for a House of Representatives committee hearing Thursday in Washington on "How the Air Transportation Crisis is Hurting Travelers, Entrepreneurs and the Economy." U.S. Rep. Vern Buchanan, R-Longboat Key, is one of 33 congressmen on the small-business committee who will draw testimony from the travel industry, airlines and business traveler representatives. "Safe, reliable, and affordable flights are vital to our local tourist economy," Buchanan said in a prepared statement. "Outrageous fuel costs are threatening the viability of some of our nation's airlines and the ability of consumers to travel. Continental recently blamed rising fuel costs for its decision to stop flying to Sarasota-Bradenton International Airport. Other airlines have increased fees and airfare to recoup their losses. Our tourism economy would suffer greatly if people can no longer get here. "We need a bipartisan effort to lower energy costs. For too long the Democrats and Republicans in Congress have ignored this issue. We need a national energy policy that promotes conservation, invests in alternative fuel and makes us less dependent on foreign oil." The coalition report listed a range of impact from fuel price increases: •Employment. The collapse of any of the seven largest airlines would create up to 75,000 job losses. In addition, indirect losses would affect community jobs relying on airports and airlines, and affect local purchases from suppliers. •Tourism. The geographic impact of airline failures would affect communities depending on air-based tourism. •Business activity and U.S. competitiveness. An airline failure would lead to declines in business activity, economic development and tax revenue.

WNDI 2008

5 Agenda Politics DA Addendum Aff

Oil Spec Bill key to solve Alternative Energy A varied approach incorporating oil drilling is key Bodman, Samuel. New York Times. “Letter: Breaking Oil Addiction: The Energy Secretary’s View”. Date Published: 27 July 2008. Date Accessed: 27 July 2008. . I agree with Mr. Friedman’s assertion that we must break “our addiction to oil.” But it is ridiculous and unfounded to claim that the president’s response to this challenge consists only of an effort to expand offshore drilling. The president has put forward a series of policies to expand access to our domestic resources, improve energy efficiency and harness the power of alternative energy. On the demand side, the president signed into law increases in fuel efficiency standards and financed critical research into gassaving technologies like advanced batteries and hydrogen fuel cells. On the supply side, we’ve spent more than $12 billion to advance alternative energy sources including solar, wind, biofuels and nuclear power. To more rapidly deploy these technologies, we recently announced the availability of more than $30 billion in clean-energy project loan guarantees. What have these efforts produced so far? The United States has the fastest growing wind power capacity in the world, and installed photovoltaic capacity has grown 30 percent a year, and we lead the world in overall biofuels production. And the list goes on. Americans recognize that our energy challenges are complex and serious. We must continue to pursue real solutions, not demagogy and clever rhetoric.