With help from Zack Colman
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— This week’s European travel ban created a whole new level of crisis for airlines already struggling during the coronavirus travel slump.
— Two cruise lines have suspended their trips as the federal government weighs whether to impose restrictions on the industry.
— The Trump administration is passing around a draft executive order that would ban federal agencies from using Chinese drones.
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A NEW LEVEL OF CRISIS FOR AIRLINES: President Donald Trump’s 30-day ban on air travelers from most of Europe is increasing the odds that financially struggling airlines could need support from Washington, our Brianna Gurciullo reports along with your host.
The industry group International Air Transport Association called for governments worldwide to look at “all possible means to assist the industry through these extreme circumstances,” including extending lines of credit, reducing infrastructure costs, and lightening tax burdens.
For perspective: 850,000 international travelers came to the U.S. from Europe last March, spending about $3.4 billion while they were here, according to the U.S. Travel Association.
Airline industry analyst Bob Mann summed up how quickly things have escalated. “Two weeks ago, it was going to be kind of a rough patch, but you’d get beyond it,” he said. “Last week, after all the duty-and-care announcements by HR departments and general counsels, triggering all kinds of business traveler cancellations and event cancellations, it was risking a crisis but hadn’t yet reached that point. I think after [Wednesday’s] announcement, yeah, we’re there.”
An administration official told POLITICO’s Nancy Cook: “If what the airline industry says is true, then Congress really will have little choice to act or face a significant extinction moment for the airline industry,”
Trump is also considering domestic travel restrictions. “Is it a possibility? Yes, if somebody gets a little bit out of control, if an area gets too hot,” he told reporters on Thursday in the Oval Office.
A medical perspective: Domestic travel is a big worry for Celine Gounder, an infectious disease expert at New York University, who told POLITICO she’s less worried about international travel. “It’s here. In some ways, what I’m actually more concerned about at this stage is probably travel within the country,” Gounder said, noting that travel from hubs where the virus has proliferated to places where it has not could contribute to speeding the spread.
Gounder said that while she’s not sure any sort of domestic travel restrictions or mandate would make sense at this point, “I do think the advice should be to cancel all non-essential travel. I think that would be very reasonable advice.”
CRUISES SHUTTING DOWN: Two cruise lines, Princess and Viking, announced Thursday they’re suspending operations due to coronavirus, our Tanya Snyder reports. Princess, whose ships have been involved in two of the major touchpoints of the virus’ spread, is pausing operations of its 18 ships. Viking will be suspended until April 30. Both will be offering booked customers either full cash refunds or cruise credits.
Meanwhile, the CDC has investigated potential infections on 12 cruise ships so far, health officials said. “There’s very active discussions right now going on as to what decision should be made about the cruise industry at this time,” CDC Director Robert Redfield told lawmakers at a Thursday hearing.
AMERICAN PILOT TESTS POSITIVE: American Airlines confirmed on Thursday that one of its pilots, based in Dallas, tested positive for coronavirus. “We are in close contact with [the CDC] and public health officials and are coordinating with them on all required health and safety measures,” a spokesperson said.
GREEN TRANSPO IN A STIMULUS? Sen. Sheldon Whitehouse (D-R.I.) told POLITICO that he and several other senators have had “fairly preliminary” discussions of how to use “leverage” to incorporate environmentally friendly policies into a coronavirus stimulus package. He said conversations have centered around the airline and cruise industries, two of the hardest hit amid the outbreak.
Whitehouse said one idea is to insist on “offset mandates across the board so that it’s not competitive advantage to be the one that cheats the most.” He drew a parallel between the economic shock wrought by coronavirus and the forecast scientists and economists have made for climate change, which also threatens all corners of the globe.
“I can’t speak for other members, but I hope that we take advantage of these opportunities, particularly ones that are provoked by a sudden crisis, to do the preparatory steps … for the next abundantly warned-of crisis,” he said.
What’s happening in the ride-hailing world? Uber joined many companies around the world in “strongly recommending” that employees in the U.S., Europe, Canada, Japan and South Korea work from home. The company also said that any of its drivers or delivery people who are diagnosed with the coronavirus or asked to self-isolate by health authorities will get financial assistance for up to 14 days. The company is also giving drivers disinfectants.
Lyft also said it will financially support drivers if they’re diagnosed or quarantined. “We will provide funds to affected drivers based on the rides they provided on the Lyft platform over the last four weeks,” the company said on its website. And it’s given out more than 200,000 bottles of hand sanitizer.
LATEST FROM THE RAILS: Amtrak, which had previously warned of more reduced service to come, gave an update on Thursday. In addition to the already suspended nonstop Acela trains on the Northeast corridor, the railroad is reducing trains on its Keystone Service between New York and Philadelphia. The modified schedule still has 18 daily Keystone trains on weekdays, though.
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CHINESE DRONE BAN ORDER CIRCULATING: The Trump administration has drafted an executive order that would ban the federal government’s use of Chinese-made drones, Tanya reports. It’s a move that the White House has been edging toward for months, with DHS issuing warnings about data security and Interior grounding its entire fleet of Chinese UAS.
According to draft language obtained by POLITICO, the executive order would bar federal government departments and agencies from procuring, repairing or servicing a drone manufactured “in whole or in part” by any company from a foreign country viewed to be “engaged in a long-term pattern or serious instances of conduct significantly adverse to the national security of the United States or its allies.”
The order is aimed at Chinese drone giant DJI, which dominates the consumer drone market. Mark Aitken, DJI’s director of U.S. legislative affairs, called the draft “so haphazardly broad that it makes the administration’s position clear that this is not about national security or cybersecurity, rather, it is a protectionist ploy to exclude successful competitors in favor of domestically produced drone technology.”
THE BEAT GOES ON: DOT is continuing on with its business, announcing $248.5 million in grants for railroad infrastructure on Thursday through the Consolidated Rail Infrastructure and Safety Improvements program. The grants, administered by the FRA, will fund 32 projects in 27 states. Secretary Elaine Chao said the money will be used to “upgrade rail infrastructure and enhance safety on the tracks and at railroad crossings in rural and urban communities across America.”
Jordan Markwith has joined Lyft as head of external affairs, leading strategy and engagement of candidates and issue campaigns. Markwith is a veteran of Democratic politics and was formerly managing director at Capital Strategies in Los Angeles.
— “Airbus: End of Washington state tax break of Boeing just ‘initial step.’” Reuters.
— “ACLU sues U.S. for records of facial-recognition use at airports.” Wall Street Journal.
— “Coronavirus pandemic tests clout of cruise industry and its long-standing ties to Trump.” Washington Post.
— “Chicago’s horse-drawn carriages may clip clop into history.” Associated Press.
— “UPS replaces CEO David Abney with board member.” Wall Street Journal.
— “Transport for Wales: First drop in rail journeys in 24 years.” BBC.
DOT appropriations run out in 200 days. The FAA reauthorization expires in 1,297 days. Highway and transit policy is up for renewal in 200 days.
