| | | | |  | | By Alex Daugherty and Tanya Snyder | Presented by Southwest Airlines | | | | | — The new EV tax credits kick in next year as the Biden administration seeks to balance EV usage with concerns about China. — Senators hope that the FAA logjam breaks this week, though negotiations will continue into 2024. — Alaska Airlines is seeking to buy Hawaiian Airlines. IT’S MONDAY: You’re reading Morning Transportation, your Washington policy guide to everything that moves. You can reach Alex, Oriana, Tanya and Hannah at adaugherty@politico.com, opawlyk@politico.com, tsnyder@politico.com and hpinski@politico.com, respectively. Find us all on the platform formerly known as Twitter @alextdaugherty, @TSnyderDC, @oriana0214 and @HannahPinski. “I'll go back to Manhattan/As if nothin' ever happened/When I cross that bridge/It'll be as if this don't exist.”
| | | | A message from Southwest Airlines: Our commitment to Customers is central to our success across 52+ years, helping us become the airline that carries more air travelers flying nonstop within the U.S. than any other. Learn how we live this commitment through a focus on exceptional reliability and Southwest Hospitality to both our valued Customers and Southwest Employees. | | | | | THE EV TAX CREDIT GETS READY FOR 2024: The next phase of the EV tax credit is beginning to come into focus. The Treasury Department on Friday revealed details of how an upcoming ban on Chinese battery materials will go. A vehicle is disqualified from the credit if one of its suppliers has ties to China, such as making parts or having 25 percent or more of board seats tied to Beijing. In some cases, an American supplier relying on Chinese technology could be barred from the credit. General Motors said it is “well positioned” for its EVs to keep qualifying for the tax credit “in 2024 and beyond” — indicating that the company thinks it’s in good shape not just for the ban on Chinese battery components, which comes into effect on Jan. 1, 2024, but also the ban on Chinese critical minerals, which takes effect Jan. 1, 2025. John Bozzella, CEO of the Alliance for Automotive Innovation, which represents most automakers in the U.S. market, said in a statement that the rules strike “a pragmatic balance” that will ensure “the list of eligible vehicles won’t completely disappear in 2024 (which was a real worry).” CATL call: Ford, which had put a pause on its development of a $3.5 billion battery plant that it was building in partnership with the Chinese company CATL, is still reviewing the "detailed and extensive" guidance and what it will mean for the BlueOval Battery Park facility in Michigan. The Inflation Reduction Act prohibits battery materials from “foreign entities of concern,” which, for these purposes, loosely translates to companies from China. Given that China dominates many aspects of the battery supply chain — including 90 percent of the processing and 75 percent of the manufacturing of critical minerals — getting them out of U.S. EVs is no small task. It isn’t clear how many cars will actually be eligible for the tax credit, worth up to $7,500, starting in January. Heading into an election year, the Biden administration will need to balance the desires to ramp up electric vehicle usage as quickly as possible with calls from lawmakers and auto unions to ensure that China doesn’t take an outsize bite of the U.S. EV market, including minerals. James Bikales has more.
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| | WAITING FOR A MARKUP: While senators on both sides of the monthslong fight over pilot training rules expressed optimism that they could finally move forward, the Senate has not yet done so. Last week came and went without a markup. But a markup could be scheduled quickly this week because Commerce Chair Maria Cantwell (D-Wash.) never formally gaveled out a markup that was abruptly abandoned in June. However, another stopgap FAA authorization is coming. House Transportation Committee leaders Sam Graves (R-Mo.) and Rick Larsen (D-Wash.) introduced a temporary FAA authorization bill through March 8, to allow for conference negotiations between the House and Senate in January and February. Larsen said that even if the Senate manages to pass its FAA bill, S. 1939 (118), before the end-of-year break, there won’t be enough time to pass a final bill. HONEYMOON OVER: House conservatives last week began publicly airing concerns about House Speaker Mike Johnson, even though some conservatives last week said they would entertain a $1.59 trillion spending topline they once opposed. Johnson’s situation remains tenuous, however, because a slew of spending bills — including H.R. 4820 (118), the bill that funds transportation and infrastructure — remain in limbo. The FAA and transportation bill issues could make for a rough beginning to 2024 on Capitol Hill.
| | | | A message from Southwest Airlines:   | | | | | NEW MERGER ALERT: Alaska Airlines announced Sunday it is seeking to buy Hawaiian Airlines, Oriana reports, another merger that is likely to draw scrutiny from the Biden administration, which is currently fighting the JetBlue-Spirit merger in court. The deal is worth approximately $1.9 billion, the airlines said in a joint release. “[There are] a lot of pro-competitive, pro-consumer benefits coming from this merger,” Nathaniel Pieper, senior vice president for Alaska’s fleet, finance and alliances as well as treasurer, told POLITICO on Sunday. “Our two networks are complementary,” he said in an interview. The merger, if completed, would maintain Alaska's position as the fifth-largest U.S. airline. The combined entity would include 365 aircraft with service to 138 destinations, and Honolulu would become Alaska's second-largest hub. VIRTUAL SHAKEDOWN: The TSA said a self-service screening pilot program is scheduled to begin in January at Harry Reid International Airport in Las Vegas, allowing PreCheck passengers to complete the screening process with minimal to no assistance from TSA officers. In a blog post, the TSA said officers at the airport have been trained to operate the system. The self-service screening prototype from Vanderlande has been in testing at Ronald Reagan Washington National Airport for most of 2023. Passengers view a video monitor with self-help instructions, and the procedure includes a screening portal with automated entry and exit doors. When passengers pass the screening, an automatic exit door opens. Work is underway from Micro-X to develop a self-service screening pod, allowing for multiple pods in one full screening lane to accommodate multiple passengers at the same time.
| | | | JOIN WOMEN RULE ON 12/12: For centuries, women were left out of the rooms that shaped policy, built companies and led countries. Now, society needs the creativity and entrepreneurship of women more than ever. How can we make sure that women are given the space and opportunity to shape the world’s future for the better? Join POLITICO's Women Rule on Dec. 12 for Leading with Purpose: How Women Are Reinventing the World to explore this and more. REGISTER HERE. | | | | | | | | CALL YOUR LAWYER: New Jersey Gov. Phil Murphy threatened to sue, again, after New York’s proposed congestion pricing plan would charge some New Jersey drivers $15 to drive through central Manhattan. The tolls are expected to raise $15 billion for the Metropolitan Transportation Authority. They would reduce traffic south of 60th Street in Manhattan by a sixth, and drivers could begin paying next spring. But New Jersey’s legal fight, it acknowledges, could take so long that the tolls are essentially done by the time the state can fight in court. Ry Rivard has more. One member of the board tasked with implementing the congestion pricing plan, Transport Workers Union President John Samuelsen, quit in protest on Thursday. But Samuelsen quit because he argued the tolls should be paired with more ambitious expansions of bus and subway service — not because of the objections from Murphy and others who oppose the plan entirely.
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Throughout 2023, we invested to improve our resiliency and support our Customers – from streamlining decision-making to reinforcing airport infrastructure, to upgrading tools and technology that helps us recover more quickly in all seasons. And during the third quarter, we successfully and smoothly navigated weather disruptions like Hurricane Hilary and Idalia.
We are ready for this winter, and our relentless pursuit of improvement will continue to guide our path forward. Learn more. | | | | | — “Drunk and asleep on the job: Air traffic controllers pushed to the brink.” The New York Times. — “US lawmakers seek probe of Chinese drone maker Autel Robotics.” Reuters. — “GOP senators: Halt travel with China to stop ‘mystery illness.’” POLITICO. — “The world’s key canal is clogged up. Winter fuel prices could get wacky.” The Wall Street Journal. — “Teamsters forms coalition to unionize Delta Air Lines workers.” Reuters. — “Putin seizes rights to St. Petersburg airport from foreign investors.” Bloomberg. — “New technology installed beneath Detroit street can charge electric vehicles as they drive.” The Associated Press. — “United Auto Workers union calls for 'immediate, permanent cease-fire' in Israel-Hamas war, becoming largest labor union to do so.” CBS News. — “O'Connor backed key environmental rulings from Supreme Court's center.” POLITICO. — “Factory reopening could save this town, but many still bash the economy.” The Washington Post.
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