| | | | |  | | By Tanya Snyder and Oriana Pawlyk | | | | | — After Biden went after private jets in his big speech, business aviation groups are punching back. — The spate of aviation incidents (and in some cases, direct hits) is reaching alarming levels. — Five months in, DOT finally has its fiscal 2024 funding settled. IT’S MONDAY: You’re reading Morning Transportation, your Washington policy guide to everything that moves. We’re glad you’re here. Send tips, feedback and song lyrics to Tanya at tsnyder@politico.com and Oriana at opawlyk@politico.com, and follow us at @TSnyderDC and @Oriana0214. “He barely made the sweeping curve that led into the steepest grade / And he missed the thankful passing bus at ninety miles an hour / And he said ‘God, make it a dream!’ / As he rode his last ride down.” TAXING THE RICH: President Joe Biden used his State of the Union speech last week to call for corporations and billionaires to pay more into the American tax rolls, including a declaration that he wanted to end tax breaks for private jets. So far the White House hasn’t put out any such proposal, but billionaires with their own planes are an easy messaging target in an election year. (The IRS is, however, auditing business jets and how they’re used as tax write-offs, which was referenced in a fact sheet preceding his speech.) Not surprisingly, trade groups disagree. On Friday, the National Business Aviation Association, which represents business jet owners, pushed back against Biden’s speech, with President Ed Bolen saying business jets are “essential” to America’s economy, supporting jobs and connecting communities. “This is an industry that should be promoted, not pilloried,” he said. The Alliance for Aviation Across America, which represents general aviation interests, said Biden’s swipe was unfair and reinforced an “inaccurate stereotype” of the business aviation industry. Backstory: It’s not the first time the White House has gunned for private jets — in 2011 and again in 2013, then-President Barack Obama targeted corporate jet owners who he said enjoyed “a tax break that no other business enjoys.” And NBAA at the time didn’t much like those remarks, either.
| | | | A message from Honda: When it comes to strengthening America’s workforce, Honda isn’t taking its foot off the pedal. We’re investing in our team of over 30,000 U.S. associates and training the next generation. We’re building automobiles, power equipment, powersports products, and an advanced light jet, all here in the U.S., using domestic and global parts. After more than 40 years of manufacturing in the U.S., Honda remains committed to leading America on the road to tomorrow. Learn more. | | | | | WHEELS, GEARS, WINGS, OH MY: Last week was bumpy for commercial aviation, and a reminder of all the places things can go wrong in America’s complex system. United Airlines had three separate Boeing planes (a 737 MAX 8, a 777-200 and a 737-900) plus an Airbus A320 experienced different mishaps — an engine flare in flight that prompted an emergency landing; a lost tire upon takeoff; a landing gear that collapsed after the plane turned off the runway into the grass; and a hydraulic system issue that also forced an emergency landing. The gear-collapse happened on a 737 MAX 8, part of the same family of aircraft currently under FAA scrutiny for Boeing's manufacturing processes and quality control — though early reports suggest the runway overrun was due to debris on the plane’s path, not necessarily the aircraft itself. United will investigate each of the incidents that occurred “to understand what happened and learn from them,” the company said in a statement, adding that much of that work is conducted together with the manufacturers, the FAA, and the NTSB. “While this work is ongoing, each of these events is distinct and unrelated to one another,” the airline said Saturday. There were no reported injuries in each of the events. Meanwhile, the FAA said it will investigate each incident, and “take appropriate action as necessary” depending on what the investigations find. United wasn’t the only one with a bad week: On Thursday night, an American Airlines flight clipped the tail of a parked Frontier Airlines plane at Miami International Airport as it was pushing back from the gate. (Nobody was hurt.) CRIMINAL PROBE: Meanwhile, the Department of Justice is probing whether the Alaska Airlines door blowout involved any criminal wrongdoing — likely on Boeing’s part. “In an event like this, it’s normal for the DOJ to be conducting an investigation,” an Alaska spokesperson told POLITICO. “We are fully cooperating and do not believe we are a target of the investigation.” According to The Wall Street Journal, which first reported the existence of the formal investigation, some passengers and crew members from the flight have been contacted by investigators. BOEING’S EMAIL TROUBLE: Former Rep. Jack Kingston (R-Ga.), now a lobbyist for Squire Patton Boggs working for Boeing, is in hot water after “inadvertently” emailing Republican lawmakers Wednesday to contradict NTSB Chair Jennifer Homendy’s testimony to the Senate Commerce Committee earlier that day, reports The Seattle Times. Homendy had said Boeing had failed to produce documents and other information and sources essential to the investigation. “In fact, the information that she requested two months ago has been received,” Kingston wrote — echoing an earlier claim by Boeing that it had provided the employee names NTSB had requested, though not the other documents. Kingston said the message should not have been sent. New phone, who dis: Boeing told The Seattle Times that it “did not authorize this communication and regret that it was sent.” It went on: “We deeply respect the NTSB and will continue to cooperate fully and transparently with them.” MARKING FIVE YEARS: As Boeing’s ongoing safety crisis unfolds, victims’ families marked the five-year anniversary of the crash of Ethiopian Airlines Flight 302 Sunday. Within days of that crash, which killed all 157 people on board, the entire global fleet of Boeing 737 MAX 8 jets were grounded. PUMP THE BRAKES: The 737 MAX 8 is still causing Boeing problems — NTSB is investigating one that experienced stuck rudder pedals at Newark Liberty International Airport last month. Boeing on Friday reiterated that the loose bolt issue that came to light in December received thorough inspection. Boeing at the time told airlines to check for loose bolts in the rudder control systems. Additional loose bolts were “not found on any other plane across the global 737 MAX fleet of 1,200 airplanes,” Boeing said in a statement.
| | | | DON’T MISS POLITICO’S HEALTH CARE SUMMIT: The stakes are high as America's health care community strives to meet the evolving needs of patients and practitioners, adopt new technologies and navigate skeptical public attitudes toward science. Join POLITICO’s annual Health Care Summit on March 13 where we will discuss the future of medicine, including the latest in health tech, new drugs and brain treatments, diagnostics, health equity, workforce strains and more. REGISTER HERE. | | | | | Want to receive this newsletter every weekday? Subscribe to POLITICO Pro. You’ll also receive daily policy news and other intelligence you need to act on the day’s biggest stories.
| | DOT+ APPROPS ENACTED: We can finally stop worrying about DOT shutting down. Congress sent a six-bill, $459 billion government funding package to Biden’s desk Friday night, with just hours to spare before a partial government shutdown after midnight. Biden signed the measure Saturday. The package includes more than $900 million in earmarks. “Passage of the package, which followed partisan sparring over Republican amendment demands that consumed much of Friday, represents Congress’ first real success funding the government more than five months into the fiscal year, capping off a chaotic round of spending talks delayed by House Republican infighting,” wrote Caitlin Emma and Jennifer Scholtes. Still to come (fingers crossed): An even bigger and more difficult spending package to fund the remaining 70 percent of the government — including the military and health, education and labor programs — is still awaiting a congressional deal before its March 22 deadline. Biden budget coming today: The Biden administration is expected to release its fiscal 2025 budget request today — a reminder that fiscal 2024 is nearly half over, and fiscal 2025 is already at the door. Budget requests are typically mostly messaging documents — especially in an election year — but offer important clues about what the White House wants to prioritize. Stay tuned.
| | | | A message from Honda:   | | | | | SHIPPERS MAKING $$$ OFF RED SEA CRISIS: Fitch Ratings last week said shipping disruptions in the Red Sea have actually been a boon for global shipping companies, which have been able to charge more to ship freight. Container freight rates have gone up by 151 percent globally in the last five months, and freight traveling between Europe and Asia has gone up by 284 percent, Fitch reported. Almost half of all cargo ships and tankers have had to find alternative routes to avoid the Suez Canal because of Houthi militants’ attacks on commercial ships in the Bab el-Mandeb Strait. The firm still does “not expect structural shifts in the shipping sector as a result of these disruptions.”
| | | | DON’T MISS AN IMPORTANT TALK ON ACCESS TO AFFORDABLE PRESCRIPTION DRUGS IN CA: Join POLITICO on March 19 to dive into the challenges of affordable prescription drugs accessibility across the state. While Washington continues to debate legislative action, POLITICO will explore the challenges unique to California, along with the potential pitfalls and solutions the CA Legislature must examine to address prescription drug affordability for its constituents. REGISTER HERE. | | | | | | | | | — “Batik Air A320 pilots slept for 28min on flight to Jakarta.” FlightGlobal. — “Two Canals, Two Big Problems — One Global Shipping Mess.” The Wall Street Journal. — “A Mistake in a Tesla and a Panicked Final Call: The Death of Angela Chao.” The Wall Street Journal. — “Sneaky Drivers Dodging Toll Cameras Cost Authorities Millions.” The Wall Street Journal. — “Shanghai Zhenhua denies posing cybersecurity risk to US ports.” Reuters. — “Southwest Airlines facing a surge of delays as spring break travel begins.” Spectrum News. — “Biden touted science funding, but Congress hollowed out his promise.” POLITICO Pro. — "The Sea Creatures That Opened a New Mystery About MH370." New York Magazine.
| | | | A message from Honda: Honda has been building automobiles in America for over 40 years. Last year, more than two-thirds of the Honda and Acura vehicles sold in America were built here. In total, we’ve built over 30 million vehicles on U.S. soil.
Our investment in the U.S. continues to grow. We directly employ a workforce of more than 30,000 associates across 74 facilities, bringing good-paying jobs to communities in 17 states.
We’ve invested more than $1.3 billion into our U.S. R&D operations, including major facilities in California and Ohio.
We’re using our purchasing power to strengthen American companies. Last year alone, we spent $30 billion in parts and materials from 600 U.S. suppliers, including many small businesses.
We are actively driving toward a stronger U.S. economy, and leading America on the road to tomorrow.
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