Arnie Weissmann:
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www.travelweekly.com
THE NATIONAL NEWSPAPER OF THE TRAVEL INDUSTRY
SEPTEMBER 28, 2009
[ A KEY ISSUE: HOW THE MONEY IS BEING SPENT ]
Cruise association sues Alaska,
claiming $46 head tax is illegal
By Johanna Jainchill
Three years after Alaska citizens decided that anyone visiting the state
on cruise ships should pay a $46
head tax, the cruise industry has
raised a loud objection in federal
court.
The Alaska Cruise Association, the industry’s state lobbying arm, filed suit on Sept. 18
in federal district court in Anchorage, arguing that the tax “blatantly violates” federal
laws that prevent states from charging marine passengers fees to pay local expenses.
The suit also claims that the tax violates
constitutional prohibitions against interfering in interstate commerce and that it discriminates against non-Alaskans.
“The ACA therefore brings this action to
prevent the continued collection of this unlawful entry fee,” the suit states.
Named as the defendant is the Alaska Department of Revenue, the agency responsible
for collecting the tax.
The suit claims that the tax violates the
language of the initiative by diverting a portion of the cruise tax revenue to localities
that are not ports of call and to projects that
provide no benefits to passengers.
Court documents cite as examples
$800,000 for improvements to the zoo in
Anchorage and $1 million for the Morris
Thompson Cultural and Visitors Center in
Fairbanks, which lies about 400 miles from
the closest cruise port.
“The cruise lines expect to pay the costs
associated with the services” that are provided to them by the state and its ports, said
John Binkley, the former Alaska gubernatorial candidate who now heads the cruise association. “Typically, the way a fee is charged
is you first have an assessment of what the
needs are. It strikes us as a little backwards to
See ALASKA on Page 66
Support for passenger rights grows,
but legislation hits snag in the House
By Michael Fabey
WASHINGTON — Supporters of passenger
rights legislation that would limit tarmac delays earned some tactical victories last week,
but they also suffered a strategic setback.
On Sept. 22, proponents of the bill, which
would limit tarmac delays to
three hours, held what they
called a “stakeholders hearing,” a Capitol Hill meeting
of lawmakers, the bill’s supporters and aviation experts.
In a major coup, they won
the support of former American Airlines CEO Robert
Crandall, who attended the
hearing and applauded passenger rights legislation.
Meanwhile, at an almost simultaneous
meeting between representatives of the
Transportation Department and the Air
Transport Association, the ATA signaled
it might soften its opposition to the issue,
though it also later voiced concerns about a
“hard-and-fast” three-hour cap.
Yet, despite all that momentum, the House
on Sept. 23 passed a three-month FAA au-
thorization extension that
did not include the passenger
rights language.
If the Senate passes the
same extension, passenger
rights protections will be relegated to the back burner.
If, however, passenger rights
supporters can get the language included in the Senate
extension, it will become law when the extension is passed.
Sen. Barbara Boxer (D-Calif.), a sponsor of
See RIGHTS on Page 67
Former American CEO Robert Crandall explains his support for a passenger rights bill. In the Hot Seat, P. 4
