Seeks Legislative Action
ALPA has called on Congress to pass legislation that would help
control excessive speculation in the commodity futures marketplace
by enhancing oversight, transparency, and reporting requirements,
as well as imposing limits on cumulative speculative positions
across all markets.
“Oil prices have begun to climb again and, given the other
challenges facing our economy right now, it’s clear that we
need to act swiftly to stabilize the marketplace to head off
another significant price spike,” said Capt. John Prater,
ALPA’s president. “The legislation currently before
Congress will help foster a stable oil supply and support a healthy
airline industry, which plays a fundamental role in the
nation’s transportation infrastructure and contributes
enormously to the country’s economy.”
ALPA was among more than a dozen members of the Commodity
Markets Oversight Coalition to sign a letter sent to Rep. Collin
Peterson (D-Minn.), chairman of the U.S. House Agriculture
Committee, calling for the amendment to impose limits on
speculation across all markets and passage of the
“Derivatives Markets Transparency and Accountability Act of
2009” (H.R. 977).
If passed, H.R. 977 would put in place a number of much-needed
changes to commodities oversight laws. It would require the
clearing (or settling) of all standardized futures contracts and
those traded over-the-counter, strengthen record-keeping and
reporting requirements for traders and exchanges, and close many of
the loopholes that undermine price discovery in futures markets.
The Association also asks Congress to add a provision to the
current bill language that would require the Commodity Futures
Trading Commission to impose aggregate speculative position limits
on traders across all markets.
In 2008, ALPA’s Board of
Directors passed a resolution calling for a comprehensive energy
policy that reduces fuel prices and volatility by controlling
rampant speculation, recognizes aviation’s contributions to
conservation, continues the use of carbon-based fuels without
increasing the industry’s tax burden, and supports new
technology. ALPA’s leaders also urged creation of a
transportation policy that fosters a viable and functional airline
industry and protects the long-term interests of the public and all
airline employees. Prater created the ALPA President’s Task
Force on Aviation Sustainability and the Environment in 2007 and
this key group works to pursue a comprehensive national energy
policy based on this Board directive.
“While strong national policy on energy and transportation
is the real solution for the airline industry and the
nation’s economy, passing this legislation would be important
progress toward ending the rampant oil speculation that has
contributed to the recent spikes in oil prices,” continued
Prater. “ALPA will continue to work with the U.S. Congress
and the Administration to craft a national energy and
transportation policy that positions our airline industry and our
nation to succeed.”