JFK CHAMBER OF COMMERCE LUNCHEON HOLIDAY INN - JFK AIRPORT - JAMAICA, NEW YORK

GOOD AFTERNOON. IT'S CERTAINLY A PLEASURE TO BE HERE, AND I APPRECIATE THE HONOR OF BEING ASKED TO ADDRESS THIS PRESTIGIOUS GROUP, FOR THE FIRST TIME, ON THE LATEST HAPPENINGS IN THE AIRLINE INDUSTRY, ON CAPITOL HILL, AND ITS IMPACT HERE AT HOME -- JFK AIRPORT. MORE IMPORTANTLY, I AM GLAD TO HAVE THE OPPORTUNITY TO REAFFIRM THE BOND THAT UNITES EVERYONE IN THIS ROOM ' WHICH IS OUR COMMITMENT TO THE FUTURE OF A HEALTHY AND PROSPEROUS COMMERCIAL AVIATION INDUSTRY.

LET ME BEGIN WITH A COMPLIMENT TO THE CHAMBER ABOUT WHERE THIS AIRPORT COMMUNITY STANDS IN THE PUBLIC POLICY PROCESS THAT CONSUMES YOUR INDUSTRY. THE CHAMBER HAS EVOLVED INTO A HIGHLY RESPECTED VOICE FOR THE AVIATION COMMUNITY IN NEW YORK. YOU HAVE SUCCESSFULLY ENGAGED YOUR MEMBERS ON A VARIETY OF PUBLIC POLICY ISSUES THAT ARE TAKING PLACE IN WASHINGTON. I KNOW FIRSTHAND FROM THE INTENSE LOBBYING EFFORTS I RECEIVED ON TRADE LEGISLATION BEFORE CONGRESS.

I BELIEVE IT IS EQUALLY IMPORTANT FOR YOU TO BE CLOSER TO THE LOCAL COMMUNITY AND ITS ELECTED REPRESENTATIVES. IN OTHER WORDS, I NEED TO KNOW YOU BETTER AND YOU NEED TO KNOW ME BETTER. YOU NEED TO DEVELOP RELATIONSHIPS WITH MY OTHER COLLEAGUES IN GOVERNMENT ALSO. IN FACT, WE NEED TO BE DATING ONE ANOTHER.

THIS IS IMPORTANT. YOU NEED TO KNOW, AND I DON'T MEAN TO BLOW MY OWN HORN, BUT SINCE I ARRIVED TO CONGRESS ALMOST FIVE YEARS AGO, THIS INDUSTRY HAS NOT HAD A BETTER ADVOCATE THAN MYSELF. MY RECORD SPEAKS LOUDLY AND IT IS ONE THAT I AM VERY PROUD OF AND YOU SHOULD BE AS WELL. I HAVE BEEN RECOGNIZED BY VARIOUS INDUSTRY ORGANIZATIONS FOR MY TREMENDOUS SUPPORT AND BULLISH LEGISLATIVE RECORD ON THIS INDUSTRY'S ISSUES.

BUT I ALSO NEED TO KNOW DIRECTLY FROM YOU, YOUR CONCERNS WITH SOME SPECIFICITY, SO I HOPE THIS IS OUR FIRST DATE AND IT IS THE BEGINNING OF A LONG TERM RELATIONSHIP. FOR I KNOW, WORKING TOGETHER, WE CAN RETURN KENNEDY AIRPORT TO ITS RIGHTFUL PLACE OF BEING THE WORLD'S PREMIER INTERNATIONAL GATEWAY AND THE FRONT DOOR TO AMERICA!

NOW I WOULD LIKE TO MAKE A FEW OBSERVATIONS ON THE INDUSTRY AS I SEE IT. NEARLY A YEAR REMOVED FROM THE DARKEST DAY IN OUR COUNTRY'S HISTORY (9/11), THE FUTURE FOR OUR NATION'S AIR TRANSPORTATION SYSTEM IS STILL FLYING IN SEVERE TURBULENCE. LOSSES FOR U.S. CARRIERS REACHED $8 BILLION IN 2001; HUGE EMPLOYEE CUTS TOTALING AROUND 95,000 FOR THE INDUSTRY; AND MAJOR REDUCTIONS IN CAPITAL EXPENDITURES; AND HUGE INCREASES IN DEBT -- LOTS OF DEBT. AND THE TAILSPIN CONTINUES. U.S. AIRLINES HAVE ALREADY AMOUNTED LOSSES TOTALING $4 BILLION IN JUST THE FIRST SIX MONTHS OF THIS YEAR.

ALTHOUGH ALL NEWS IS NOT BAD. DESPITE VERY GLOOMY NUMBERS AND FORECASTS OF MORE PROJECTED LOSSES, AMERICAN AIRLINES CONTINUE TO MOVE FORWARD AND BUILD THEIR NEW $1.4 BILLION TERMINAL HERE ' THE CENTERPIECE OF THE NEW JFK. ALL OF US IN THIS ROOM SHOULD BE GRATEFUL TO AMERICAN'S CONTINUED COMMITMENT TO KENNEDY AND NEW YORK CITY.

MEANWHILE, JETBLUE CONTINUES ITS REMARKABLE JOURNEY AND IS NOW BECOMING THE STANDARD FOR ALL OTHERS TO BE MEASURED AGAINST. NEW YORK'S HOMETOWN, LOW-FARE AIRLINE'S EXPANSION IN THIS TUMULTUOUS ECONOMIC ENVIRONMENT IS NOTHING SHORT OF REMARKABLE. JETBLUE NOW FLIES TO 19 CITIES USING A FLEET OF 28 NEW AIRBUS A-320 AIRCRAFT. IN JUST TWO YEARS, JETBLUE HAS EXCEEDED ALL EXPECTATIONS IN A VERY COMPETITIVE ENVIRONMENT.

THIS INDUSTRY HAS TAKEN DRAMATIC INTERNAL STEPS POST 9/11 JUST TO STAY AFLOAT. US AIR, MIDWAY AND VANGUARD AIRLINES ALL FILING FOR BANKRUPTCY PROTECTION WITH SPECULATION LOOMING THAT UNITED AIRLINES COULD SOON FOLLOW SUIT. AMERICAN'S SWEEPING REORGANIZATION WHERE IT HAS TO CUT 7,000 JOBS. DELTA AIRLINES, HAMPERED BY THE INDUSTRY-WIDE RECESSION, SCALING BACK OPERATIONS HERE AT KENNEDY ABOUT 44%, AND SUSPENDING THEIR TERMINAL PROJECT FOR JFK THAT WAS ANNOUNCED IN LATE 2000; AND NORTHWEST AND CONTINENTAL AIRLINES BOTH REDUCING CAPACITY AND CONTINENTAL IMPOSING NEW SERVICE FEES ON ITS CUSTOMERS. DESPITE THESE FUNDAMENTAL CHANGES, WITH TRAVEL DEMAND STILL SLOWLY RETURNING, AND THE FAA'S FORECAST THAT RETURNS TO PRE-SEPTEMBER 11 LEVELS WON'T OCCUR BEFORE 2003, MUCH UNCERTAINTY REMAINS FOR THE COMMERCIAL AVIATION INDUSTRY.

AS WE LOOK AHEAD, WE HAVE GOT A LONG LIST OF FORMIDABLE CHALLENGES. (PAUSE) NOTICE I SAID WE, BECAUSE IT WILL TAKE BOTH THE PUBLIC AND PRIVATE SECTORS COLLECTIVELY WORKING TOGETHER IF THIS INDUSTRY IS GOING TO REACH THE HEIGHTS IT ENJOYED IN THE BOOM OF THE LATE 90S. THEREFORE, WE NEED TO HAVE A ROBUST DIALOGUE GOING FORWARD TO ENACT POLICIES THAT WILL COMPLIMENT THE INDUSTRY'S GROWTH ' NOT HINDER IT. THAT IS MY CHALLENGE TO ALL OF YOU IN THIS ROOM.

LADIES AND GENTLEMEN, WE CERTAINLY LIVE IN A MORE DANGEROUS WORLD. SEPTEMBER 11 WAS A MASSIVE ATTACK ON OUR COUNTRY AND WAY OF LIFE. IT WAS ALSO A MASSIVE EDUCATION. AS RICHARD CLARKE, THE FORMER WHITE HOUSE COUNTER-TERRORISM CHIEF SAID, "DEMOCRACIES DON'T PREPARE WELL FOR THINGS THAT HAVE NEVER HAPPENED BEFORE." FOR ALL OF YOU IN THE AVIATION COMMUNITY, THE TERRORIST ATTACKS OF 9/11 DEMONSTRATED THAT CIVIL AIRCRAFT, THE TOOLS OF COMMERCE AND INSTRUMENTS OF UNITY, CAN ALSO BE AGENTS OF TREMENDOUS DAMAGE ' TO OUR CITIZENS, ECONOMY AND WAY OF LIFE.

THAT IS WHY ALL OF YOU ARE CONFRONTING ANOTHER CHALLENGE IN YOUR BUSINESS PRACTICES EACH DAY POST 9/11 -- SECURITY. WE ALL NEED TO DO EVERYTHING WE CAN TO MAKE AIR TRAVEL SAFER AND MORE SECURE THAN EVER BEFORE. HOWEVER, WE NEED TO REVISIT SOME OF THE RULES PUT IN PLACE IMMEDIATELY FOLLOWING 9/11 TO EXAMINE WHETHER OR NOT IT REALLY PROVIDES SECURITY OR IS SIMPLY WINDOW DRESSING.

FOR EXAMPLE, LOOK AT THE 300-FOOT PARKING RULE; OR THE RULE THAT DOES NOT ALLOW PASSENGERS TO LEAVE THEIR SEATS ON ALL FLIGHTS INTO-AND-OUT OF NATIONAL AIRPORT IN WASHINGTON, DC 30 MINUTES AFTER TAKEOFF OR 30 MINUTES BEFORE LANDING. IF YOU ARE ON A SHUTTLE FLIGHT, YOU CANNOT USE THE BATHROOM ONCE THE FLIGHT LEAVES THE GATE. THE RULE UNFAIRLY PENALIZES THE CUSTOMER AND DISCOURAGES ONE FROM FLYING YET DOESN'T REALLY PROVIDE ADDITIONAL SECURITY. THESE RULES SIMPLY HURTS THE INDUSTRY AND WE SHOULD LOOK TO ELIMINATE THEM. ALL OF US IN THIS ROOM MUST DO EVERYTHING WE CAN TO PREVENT ANYTHING LIKE THE 9/11 HIJACKINGS FROM TAKING PLACE EVER AGAIN. YOUR BUSINESS MODEL IS ABSOLUTELY DEPENDENT ON THE PUBLIC'S CONFIDENCE IN THE SAFETY AND SECURITY OF COMMERCIAL AVIATION.

SOME WOULD ARGUE THAT THE MOST SECURE SYSTEM WOULD BE ONE WHERE ALL THE PLANES REMAINED ON THE GROUND. BUT OUR COUNTRY AND ECONOMY CANNOT AFFORD TO LOSE THE BENEFITS OF A CONVENIENT AIR TRANSPORTATION SYSTEM. THIS MEANS IT IS INCUMBENT UPON EVERYONE HERE TO WORK TOGETHER TO DELIVER AS SECURE A SYSTEM AS WE KNOW HOW ' AND DO IT EFFICIENTLY, COST EFFECTIVELY, AND IN THE LEAST DISRUPTIVE WAY. IT WILL BE A VERY HOLLOW VICTORY IF WE BUILD AN AVIATION SECURITY REGIME THAT MAKES AIR TRAVEL SO INCONVENIENT THAT NOBODY WANTS TO FLY AT ALL.

IF YOU DON'T BELIEVE ME, CONSIDER THIS, HERE IS HOW USA TODAY RECENTLY DESCRIBED THE AIRPORT EXPERIENCE: "CREEP THROUGH SERPENTINE SECURITY LINES. DUMP LAPTOPS, CELL PHONES, THE TINIEST METAL BITS OF ANYTHING INTO THE X-RAY MACHINE BELT. BITE YOUR LIP AS GUARDS THUMB THROUGH YOUR WALLET OR DIG INTO YOUR NEATLY PACKED UNDIES. HOP AROUND IN STOCKING FEET FOR THE SHOE INSPECTION. GET FRISKED." IN THAT SAME ARTICLE, THE RESPONSE FROM A BUSINESS TRAVELER IS: "I AM LOOKING AT HOW I CAN AVOID FUTURE AIR TRAVEL." ENOUGH SAID. I BELIEVE THAT WE CAN SECURE OUR AIRLINES AND MAINTAIN MUCH OF THE CONVENIENCE ENJOYED BY THE TRAVELING PUBLIC.

CONGRESS, AND THE ADMINISTRATION, WILL HAVE TO BECOME MORE SENSITIVE TO THE NEEDS OF THE INDUSTRY AND THE AVERAGE TRAVELER. WE WILL ALSO HAVE TO WORK WITH THE 187 MEMBER NATIONS OF THE INTERNATIONAL CIVIL AVIATION ORGANIZATION TO ADDRESS THE CHANGING AND EVOLVING THREATS AND BRING A COMMON STANDARD TO AVIATION SECURITY.

ALTHOUGH I WAS PLEASED TO SEE THAT THE ADMINISTRATION ACTED QUICKLY TO REPLACE THE HEAD OF THE NEW TRANSPORTATION SECURITY AGENCY (TSA) LAST MONTH, THIS ADMINISTRATION IS STILL REACTIVE RATHER THAN PROACTIVE. ITS PLANS ARE LENGTHY ON PAPER BUT BRIEF IN DETAILS. WHAT WILL THE NEW HOMELAND SECURITY AGENCY MEAN FOR AIR TRANSPORTATION? I WILL BE HONEST ' I DON'T KNOW! AND I DON'T THINK THIS ADMINISTRATION KNOWS EITHER. WHATEVER IT IS, THE GOAL OF A USER-FRIENDLY, HASSLE-FREE AIRPORT SECURITY SYSTEM THAT ENSURES BOTH EXCELLENT SCREENING AND EXCELLENT CUSTOMER SERVICE MUST GOVERN THE OPERATING PROCEDURES AND MANAGEMENT OBJECTIVES OF THE NEW TSA.

ANOTHER AREA OF INTEREST TO ALL OF YOU WILL BE FAA REAUTHORIZATION, ALSO KNOW AS AIR-21. THIS MAJOR PIECE OF LEGISLATION WILL BE REVISITED BY CONGRESS NEXT YEAR AS WELL AS REAUTHORIZATION OF THE HIGHWAY BILL COMMONLY REFERRED TO AS TEA-21. I AM SURE NEW YORK'S CAPACITY ISSUES WILL ONCE AGAIN BECOME A SERIOUS TOPIC OF CONVERSATION DURING THE DEBATE. WITH THE HEALTH OF THE INDUSTRY STILL FALTERING, AND AIRLINES RECOGNIZING THAT THERE IS EXCESS CAPACITY IN THE SYSTEM, THE DAYS OF DELAYS AT NEW YORK'S AREA AIRPORTS SEEM SO LONG AGO. BUT DON'T BE FOOLED. ALTHOUGH THE FOCUS HAS CHANGED -- AND RIGHTLY SO -- WHEN THE INDUSTRY REBOUNDS, AND IT WILL, WE WILL FACE THE SAME CONCERNS ABOUT THE RISK OF GRIDLOCK IN OUR SKIES THAT CONSUMED ALL OF US IN THE RECENT PAST.

THEREFORE, I HOPE, WORKING WITH BILL AND HIS COLLEAGUES AT THE PORT AUTHORITY, AND ALL OF YOU IN THIS ROOM, ONCE AND FOR ALL WE CAN FIND A SOLUTION THAT WILL EFFICIENTLY MANAGE THE PREDICTED FUTURE GROWTH OF AIR TRAVEL INTO THE NEW YORK AREA THAT IS RESPECTFUL TO THE ADJACENT NEIGHBORHOODS OF KENNEDY, LAGUARDIA AND NEWARK AIRPORTS.

SPEAKING OF GROWTH, WHEN YOU LOOK AT THE CAPACITY OF NEW YORK'S AIRPORTS, THERE IS ONLY ONE THAT REALLY HAS THE ROOM TO GROW ' JFK. WITH THE PREDICTIONS OF AIR TRAVEL DOUBLING BY 2010 TO MORE THAN 1 BILLION PASSENGERS PER YEAR, JFK IS POSITIONED VERY WELL TO TAKE ADVANTAGE OF THIS GROWTH. WITH THE BOLD INVESTMENTS MADE BY THE PORT AUTHORITY AND SOME OF JFK'S KEY STAKEHOLDERS, IN THE COMING YEARS, KENNEDY AIRPORT WILL BE READY TO COMPETE WITH THE LIKES OF MIAMI INTERNATIONAL, CHICAGO O'HARE, ATLANTA'S HARTSFIELD AND YES, NEW JERSEY'S NEWARK INTERNATIONAL.

AS THE ECONOMIC ENGINE OF MY DISTRICT, I HAVE A VESTED INTEREST TO SEE JFK GROW: JOBS...JOBS...JOBS AND MORE JOBS. THERE IS A TALENTED WORKFORCE IN MY DISTRICT THAT IS EAGER AND WAITING FOR MANY OF YOU TO TAP INTO. YOU DON'T HAVE TO LOOK FAR TO FIND SOME OF THE BEST AND BRIGHTEST OUR CITY HAS TO OFFER. WHEN YOU GIVE MY CONSTITUENTS THE OPPORTUNITY TO HELP YOU HELP YOUR BUSINESS GROW, IT JUSTIFIES MANY OF MY POSITIONS I TAKE IN REGARD TO YOUR BUSINESS. THE PEOPLE WHO VOTE FOR ME DON'T LIKE THE AIRPLANE OR TRUCK NOISE AND POLLUTION GENERATED BY THIS AIRPORT. WHEN I SAY I AM IN FAVOR OF EXPANDING JFK, THEY OFTEN REPLY: CONGRESSMAN MEEKS, DO YOU WANT US TO VOTE FOR YOU? BUT I CAN EXPLAIN MY REASONING WHEN I CAN SHOW THAT MY CONSTITUENTS ARE GETTING JOBS AS A RESULT OF KENNEDY'S GROWTH AND OTHER ECONOMIC ACTIVITIES TAKING PLACE; AND IT ALSO HELPS WHEN YOU REACH OUT TO THE COMMUNITY.

WE ALL HAVE THE OPPORTUNITY TO GIVE PEOPLE THE CHANCE TO STRENGTHEN THEIR OWN LIVES AND OUR LOCAL AND GLOBAL ECONOMY THROUGH TRANSPORTATION. KEEP IN MIND THAT THE POWER OF TRANSPORTATION IS ABOUT SO MUCH MORE THAN CONCRETE, ASPHALT AND STEEL. AS FORMER SECRETARY RODNEY SLATER SAID, "IT IS THE TIE THAT BINDS PEOPLE AND COMMUNITIES TOGETHER." IT PROMOTES ECONOMIC DEVELOPMENT. IT EXPANDS THE POSSIBILITIES FOR TRADE; AND IT OPENS DOORS AND MARKETS. FAIRNESS DEMANDS AN EQUAL DISTRIBUTION OF OPPORTUNITY, A LEVEL PLAYING FIELD IN WHICH EVERYBODY HAS A CHANCE TO PARTICIPATE AND TO FULFILL THEIR GOD-GIVEN POTENTIAL. THEREFORE, LET US LEAD THE WAY TO PARTNER GOVERNMENT WITH THE CREATIVITY AND INNOVATION OFFERED BY THE PRIVATE SECTOR.

WHEN I SPEAK ABOUT EXPANDING JFK, I AM TALKING ABOUT A MAJOR AIRLINE MAKING KENNEDY A "HUB" AIRPORT. NEW YORK IS ONE OF THE WORLD'S TOP DESTINATIONS. AS SUCH, WE NEED AN AIRPORT THAT CAN EFFECTIVELY COMPETE WITH THE OTHER DOMESTIC/INTERNATIONAL U.S. HUB AIRPORTS. THIS IS NOT A AN INDICTMENT ON THE JOB THE PORT AUTHORITY IS DOING OR HAS DONE. LET ME GO ON RECORD TO STATE THAT NO OTHER AIRPORT AUTHORITY IN THE WORLD CAN MANAGE THREE OF THE WORLD'S BUSIEST AIRPORTS, IN THE WORLD'S BUSIEST AIRSPACE, AND DO IT AS EFFECTIVELY AND EFFICIENTLY AS THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY.

HOWEVER, THE TIME HAS COME TO RETURN KENNEDY TO ITS FORMER GLORY AND TAKE BACK THE LOST MARKETSHARE OTHER AIRPORTS, INCLUDING NEWARK, HAVE TAKEN AWAY FROM JFK OVER THE PAST 25 YEARS. KENNEDY IS WELL-POSITIONED TO BECOME A HUB AIRPORT, INSTEAD OF A FOCUS CITY, BY A MAJOR CARRIER. WITH A ON-GOING $1.4 BILLION CAPITAL INVESTMENT PROJECT BY AMERICAN AIRLINES, AND A POSSIBLE NEW FACILITY BY DELTA, COMBINED WITH THE CONTINUED GROWTH PROSPECTS OF JETBLUE, JFK IS THE ONLY AIRPORT ALONG THE EAST COAST THAT IS IDEALLY-SUITED TO BE DECLARED A "HUB." I ASK ALL OF YOU, IF CHICAGO'S O'HARE CAN SUPPORT BOTH UNITED AND AMERICAN AS A HUB, WHY CAN'T KENNEDY SUPPORT BOTH DELTA AND AMERICAN AS A HUB? IF LOS ANGELES INTERNATIONAL (LAX) CAN SUPPORT AMERICAN, UNITED AND SOUTHWEST ' ALL WITH SIGNIFICANT HUB-LIKE OPERATIONS, WHY CAN'T KENNEDY SUPPORT AMERICAN, DELTA AND JETBLUE WITH HUB OPERATIONS? THE ANSWER IS YES WE CAN!

AS MANY IN THIS AUDIENCE PROBABLY KNOWS, JFK -- A TRADITIONAL INTERNATIONAL GATEWAY FOR THE U.S. ' HAS BEEN HURT SINCE DEREGULATION OF THE COMMERCIAL AIRLINE INDUSTRY IN 1978. MAJOR CARRIERS SUCH AS PAN AM, EASTERN, THE FORMER-NATIONAL AIRLINES AND TWA ALL HAD A MAJOR PRESENCE HERE. PAN AM AND TWA USED JFK FOR CONNECTING TRAFFIC BEFORE DEREGULATION. AS WE SAW, PAN AM WENT BANKRUPT IN 1991, TWA'S ASSETS WERE ACQUIRED BY AMERICAN LAST YEAR, AND EASTERN AND NATIONAL WENT OUT OF BUSINESS IN 1989 AND 1982, RESPECTIVELY. ALL FOUR OF THESE CARRIERS EMPLOYED THOUSANDS OF WORKERS AND OFFERED HUNDREDS OF DOMESTIC AND INTERNATIONAL FLIGHTS HERE AT JFK.

THE IMPORTANCE OF HUB SERVICE CANNOT BE OVERSTATED. HUB SERVICE -- WHERE A NETWORK OF SHORTER RANGE, LOW DENSITY ROUTES COMPLEMENTS A NETWORK OF LONGER RANGE, HIGHER DENSITY ROUTES, MEAN THAT THE ECONOMIC VIABILITY OF EITHER NETWORK IS STRENGTHENED BY THE EXISTENCE OF THE OTHER. MORE DESTINATIONS ARE POSSIBLE IF AN AIRLINE PAIRS FLIGHTS IN THEIR NETWORK INCREASING THE FEED AND DISTRIBUTION POTENTIAL AT AN AIRPORT CENTER.

FOR EXAMPLE, MANY OF YOU WILL REMEMBER THE DEBATE SEVERAL YEARS AGO ABOUT SERVICE TO-AND-FROM UPSTATE NEW YORK CITIES. TO A LARGE DEGREE, WE RESOLVED THAT ISSUE WITH MY AMENDMENT IN AIR-21, AND THE NEW SERVICE PROVIDED BY JETBLUE. BUT LET'S ASSUME KENNEDY BECAME A HUB AIRPORT FOR A MAJOR CARRIER.

UPSTATE NEW YORK WOULD BENEFIT BECAUSE IT WOULD MEAN MORE SERVICE/FLIGHTS INTO NEW YORK CITY TO MAKE CONNECTIONS TO OTHER DESTINATIONS THAT HAVE A MUCH HIGHER VOLUME FOR A MAJOR CARRIER THAT HAS AN EXTENSIVE NETWORK OR MARKET CONCENTRATION THAT CAN GET THEIR RESPECTIVE CUSTOMERS TO JUST ABOUT ANY POINT IN THE WORLD EITHER DIRECTLY OR INDIRECTLY THROUGH THEIR ALLIANCES OR CODESHARE AGREEMENTS. REGIONAL AREAS LIKE UPSTATE NEW YORK WILL DRAMATICALLY BENEFIT FROM KENNEDY BEING A HUB BECAUSE TRAVELERS WHO MUST CURRENTLY MAKE CONNECTIONS IN CITIES SUCH AS CHICAGO, DETROIT, AND CINCINNATI NOW CAN GO THROUGH JFK INSTEAD. OF COURSE, IT GOES WITHOUT SAYING THAT THE BUSINESS COMMUNITY OF NEW YORK BENEFITS BY HAVING NON-STOP SERVICE TO HUNDREDS OF DOMESTIC AND INTERNATIONAL CITIES.

WITH THE NEW REALITY OF ALLIANCES AND CONSOLIDATIONS, KENNEDY AIRPORT BECOMES MORE ATTRACTIVE TO ALLIED ALLIANCES BECAUSE OF THE POTENTIAL FOR CONNECTING TRAFFIC. FOR INSTANCE, FOREIGN FLAG CARRIERS WHO ARE NOT ABLE TO SERVE MARKETS IN THE UNITED STATES NEED CONNECTING TRAFFIC AT A GATEWAY SUCH AS JFK TO REACH DIFFERENT POINTS IN THE COUNTRY. FOR EXAMPLE, IF THESE FOREIGN CARRIERS DESIRE TO REACH FIVE CITIES IN THE U.S., THEY WILL HAVE TO FLY TO FIVE DIFFERENT LOCATIONS. OR THEY WILL NEED A CENTER OF OPERATIONS WHICH WILL PERMIT THEM TO FLY TO ONE U.S. POINT AND FROM THERE USE A DOMESTIC CARRIER TO DISTRIBUTE THEIR PASSENGERS TO THE OTHER FOUR DESIRED DESTINATIONS. THIS IS THE REVERSE BENEFIT OF HAVING JFK AS A HUB AIRPORT.

RETURNING BACK TO THE ISSUE OF KENNEDY BECOMING A HUB AIRPORT, THE LARGER COMMUNITY BENEFITS FROM THE NUMBER OF VISITORS THE AIRLINES BRING WHO USES HOTELS, RESTAURANTS, TAXIS, SHOP AND PAY TAXES OR TOLLS. THE COMMUNITY ALSO BENEFITS FROM THE NUMBER OF THOSE TRAVELERS WHO CONDUCT BUSINESS IN THE REGION AND FURTHER CONTRIBUTE TO INCREASED COMMERCIAL AND/OR FINANCIAL ACTIVITIES OF THE CITY OR STATE.

ENVISION FOR A MOMENT, A MAJOR CARRIER DECLARES KENNEDY A HUB AIRPORT FOR DOMESTIC AND INTERNATIONAL TRAFFIC, WITH THE DOMESTIC SERVICE FEEDING THE CARRIER'S INTERNATIONAL SERVICE FROM JFK. THE AMOUNT OF REVENUE THAT WILL BE GENERATED TO MY DISTRICT, AND THE NEW YORK REGION, FROM THE INCREASED BUSINESS AND LEISURE ACTIVITIES OF THE TRAVELING PUBLIC ARRIVING AND DEPARTING FROM KENNEDY, LODGING, LOCAL EATERIES AND OTHER BUSINESSES THAT SUPPORT COMMERCE-RELATED ACTIVITIES AT THE AIRPORT WILL BE ENORMOUS.

THEREFORE, I THINK YOU ALL WILL AGREE, JFK IS VERY ATTRACTIVE TO BE DECLARED A HUB AIRPORT BY A MAJOR CARRIER. SO WHEN THE FINANCIAL CRISIS IN THIS INDUSTRY IS OVER, AND THE SKIES BECOME FRIENDLY ONCE AGAIN FOR THE AIRLINES, I WILL NEED ALL OF YOU TO HELP MAKE THIS BECOME A REALITY. TOGETHER WE CAN RESTORE KENNEDY TO ITS FORMER GLORY AS THE WORLD'S PREMIER INTERNATIONAL GATEWAY AND THE FRONT DOOR OF AMERICA.

LASTLY, INTERNATIONAL AVIATION HAS A VITAL ROLE TO PLAY IN THIS NEW ERA. WE ARE NOW IN A GLOBAL ECONOMY THAT HAS MADE OUR WORLD MUCH SMALLER. AS PRESIDENT CLINTON SAID, "TO REALIZE THE FULL POSSIBILITIES OF THIS ECONOMY WE MUST REACH BEYOND OUR BORDERS..." THERE IS NO DOUBT THAT AVIATION WILL BE FOR AMERICA IN THE 21^ST CENTURY, WHAT THE INTERSTATE HIGHWAY SYSTEM WAS FOR AMERICA IN THE LAST HALF OF THE 20^TH CENTURY.

JUST AS THE INTERSTATES CONNECTED THE COMMUNITIES AND STATES OF OUR NATION TOGTHER AS ONE AMERICA, SO WILL AVIATION CONNECT OUR COMMUNITIES, CITIES, STATES WITH COMMUNITIES AND COUNTRIES AROUND THE WORLD. THE POWER OF TRANSPORTATION, IN PARTICULAR AVIATION, HELPS TO BRING DOWN BARRIERS AROUND THE WORLD AND OPENS MARKETS FOR US TO ENGAGE IN ECONOMICALLY AND SOCIALLY. THE POWER OF AVIATION CAN BE THE POWERFUL CATALYST FOR CHANGE THAT UNITES US AT HOME AND AROUND THE WORLD.

THE EVENTS OF THE PAST YEAR HAVE DRIVEN HOME ALL TOO CLEARLY THE CRITICAL IMPORTANCE OF RELATIONSHIPS IN BUSINESS, GOVERNMENT AND COMMUNITY. NONE OF US CAN GO AT IT ALONE. AS WE LEARNED LAST SEPTEMBER, WHEN A CRISIS HITS, WE ALL RELY UPON A NETWORK OF POSITIVE RELATIONSHIPS TO GET US THROUGH TRYING TIMES. THE ACTIVITIES OF THE CHAMBER, SUCH AS THIS LUNCH, GIVE US A GREAT OPPORTUNITY TO STRENGTHEN THE CONNECTIONS THAT BIND US ALL.

WE NEED AN AVIATION SECTOR THAT THRIVES, NOT JUST SURVIVES! THIS INDUSTRY IS FACING MANY CHALLENGES. NOTWITHSTANDING THE CHALLENGES THAT THREATEN THE VERY EXISTENCE OF YOUR BUSINESS, I CHALLENGE ALL OF YOU TO SEIZE THE OPPORTUNITY AND BECOME THE AGENTS OF CHANGE FOR INDUSTRY AND COMMUNITY. LET'S PARTNER TOGETHER TO PUT PEOPLE FIRST USING THE POWER OF TRANSPORTATION. IF WE DO THAT, KENNEDY CAN BE THE KIND OF HUB AIRPORT THAT WILL BE A TESTAMENT TO THE BENEFITS OF PRIVATE-PUBLIC PARTNERSHIPS. THANK YOU.