Alaska Airlines and Horizon Air 2007 Annual Report Download - page 113

Security Act, the Transportation Security
Administration (TSA) is responsible for aviation
security. The Security Act mandates that the TSA
shall provide for the screening of passengers
and property, including U.S. mail, cargo, carry-on
and checked baggage, and other articles that will
be carried aboard a passenger aircraft. The TSA
performs most of these functions with its own
federal employees. The TSA also provides for
increased security on flight decks of aircraft and
requires federal air marshals to be present on
certain flights. The Security Act imposes a $2.50
per enplanement security service fee (maximum
$5.00 one-way fee), which is collected by the air
carriers and submitted to the government to pay
for these enhanced security measures. In
addition, carriers are required to pay an
additional amount to the TSA to cover the cost of
providing security measures equal to the amount
the air carriers paid for screening passengers
and property in 2000. We paid $12.6 million to
the TSA for this security charge in 2007, 2006
and 2005.
The Department of Justice has jurisdiction over
airline antitrust matters. The U.S. Postal Service
has jurisdiction over certain aspects of the
transportation of mail and related services.
Labor relations in the air transportation industry
are regulated under the Railway Labor Act, which
vests in the National Mediation Board (NMB)
certain functions with respect to disputes
between airlines and labor unions relating to
union representation and collective bargaining
agreements. To the extent we continue to fly to
foreign countries and pursue alliances with
international carriers, we may be subject to
certain regulations of foreign agencies.
AIRLINE FARES
Airlines are permitted to establish their own
domestic fares without governmental regulation,
and the industry is characterized by vigorous
price competition. The DOT maintains authority
over international (generally outside of North
America) fares, rates and charges. International
fares and rates are also subject to the
jurisdiction of the governments of the foreign
countries we serve. Although air carriers are
required to file and adhere to international fare
and rate tariffs, substantial commissions,
overrides and discounts given to travel agents,
brokers and wholesalers characterize many
international markets.
ENVIRONMENTAL MATTERS
We are subject to various laws and government
regulations concerning environmental matters
and employee safety and health in the U.S. and
other countries. U.S. federal laws that have a
particular effect on us include the Airport Noise
and Capacity Act of 1990, the Clean Air Act, the
Resource Conservation and Recovery Act, the
Clean Water Act, the Safe Drinking Water Act,
and the Comprehensive Environmental
Response, Compensation and Liability Act, or
Superfund Act. We are also subject to the
oversight of the Occupational Safety and Health
Administration (OSHA) concerning employee
safety and health matters. The U.S.
Environmental Protection Agency, or EPA, OSHA,
and other federal agencies have been authorized
to create and enforce regulations that have an
impact on our operations. In addition to these
federal activities, various states have been
delegated certain authorities under these federal
statutes. Many state and local governments
have adopted environmental and employee
safety and health laws and regulations, some of
which are similar to federal requirements. We
maintain our own continuing safety, health and
environmental programs in order to meet or
exceed these requirements.
The Airport Noise and Capacity Act recognizes
the rights of airport operators with noise
problems to implement local noise abatement
programs so long as they do not interfere
unreasonably with interstate or foreign
commerce or the national air transportation
system. Authorities in several cities have
established aircraft noise reduction programs,
including the imposition of nighttime curfews.
The Airport Noise and Capacity Act generally
requires FAA approval of local noise restrictions
on aircraft. We believe we have sufficient
scheduling flexibility to accommodate local noise
restrictions.
At December 31, 2007, all of our aircraft met
the Stage 3 noise requirements under the Airport
Noise and Capacity Act of 1990. However,
13
ŠForm 10-K