ALPA Hails Obama Signing of Landmark Financial Reform

July 22, 2010 - ALPA applauds U.S. President Barack Obama’s signing of comprehensive legislation that will dramatically overhaul domestic financial-market regulations. The signing, which took place this morning, comes just five days after the Senate approved the Restoring American Financial Stability Act, and will provide a broad range of protections for ALPA members.

“This is a historic day for the nation’s air transportation industry,” said ALPA president Capt. John Prater. “This landmark legislation will protect our airlines from the effects of rampant oil speculation and help stabilize employment, promoting a healthier work environment for our members.”

ALPA has worked tirelessly with the AFL-CIO and Stop Oil Speculation Now to ensure that two specific issues were addressed in the legislative language. One priority was for greater transparency in the derivatives market. The new law will expand current levels of accountability, safeguarding airlines and other businesses from the kind of rampant oil speculation witnessed during the 2008 financial crisis.

ALPA’s other legislative priority focused on the continued ability for U.S. airlines to hedge fuel costs through the legitimate use of derivatives. Airlines use this financial tool to minimize the risks associated with the dramatic shifts that can occur in fuel pricing.

“We congratulate the Obama Administration for its vision and tenacity in getting this legislation reviewed and codified,” said Prater.