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The Frequent Fliers of Congress Consider New Flights for Washington Airport

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The Frequent Fliers of Congress Consider New Flights for Washington Airport

Representative Blake D. Moore, Republican of Utah, is pushing for changes to federal law that would allow more nonstop flights between Ronald Reagan Washington National Airport and Salt Lake City. Those flights, he said, would increase tourism between Utah and the nation’s capital.

They would also offer Mr. Moore a more efficient commute.

When he heads home from Capitol Hill, Mr. Moore often waits for the only direct flight in the afternoon or evening from any of the three Washington-area airports that can return him to Salt Lake City in time to tuck in his children: a Delta Air Lines departure from Reagan National, also known as DCA, after 5 p.m. that lands around 8 p.m. An earlier departure would allow him to fulfill his duties as a legislator but also as a father, Mr. Moore said, letting him help his wife with dinner or attend Little League practice.

“We need more direct flights out of DCA,” he said.

In recent weeks, dozens of lawmakers have joined the push for 28 new round-trip flights per day at Reagan National. Pressing their case with opinion essays, tweets and proposed legislation, they argue that these additional routes — which would require tweaking a decades-old law that prevents most flights from traveling more than 1,250 miles to or from Reagan National — would meet pent-up demand, reduce airfares and create new jobs.

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Their push, fueled by a multimillion-dollar lobbying campaign sponsored by Delta, aims to enact changes as part of legislation that would reauthorize the Federal Aviation Administration for another five years.

The effort to relax the so-called perimeter rule is caught up in battles for market share among airlines, local politics in the Washington area and friction over the F.A.A.’s chronic and worsening problems managing air traffic and safety.

But unlike many of the special-interest battles in Washington, this one has personal ramifications for lawmakers — or at least those who shuttle home each week to points west that cannot be reached easily from Reagan National, located just across the Potomac River from downtown Washington and a quick ride from Capitol Hill. (Another Washington-area airport, Washington Dulles International Airport, is about 25 miles to the west.)

“I absolutely would be in favor” of additional direct flights from Reagan National to points outside the current 1,250-mile perimeter, said Senator Jon Tester, Democrat of Montana, adding that he would need to see more details before supporting any particular bill.

Mr. Tester described his commute — which involves a pre-dawn, 90-minute drive from his farm near Big Sandy, Mont., to Great Falls International Airport and a layover in Minneapolis, Salt Lake City or Denver — as “a pain.”

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Representative Burgess Owens, Republican of Utah and one of the lawmakers seeking to allow more long-distance flights from Reagan National, said he had recently missed one from Salt Lake City to Washington and had to wait a day and a half for another.

Ultimately, he had to fly into Baltimore/Washington International Thurgood Marshall Airport, roughly 25 miles northeast of Capitol Hill, and take an hourlong Uber ride to his office. “Unfortunately, many Utahns and Americans from the West lack access to their representatives, our nation’s historic sites and federal agencies,” he said at an event outside the Capitol promoting legislation to authorize additional flights.

It is not clear whether public policy will be swayed in this case by questions of whether members of Congress should be able to avoid inconvenient connecting flights or have more options at a nearby airport. And other issues are at play.

Lawmakers from Maryland and Virginia, the states that would be most affected by increased flights in and out of Reagan National, have argued that the airport, in Arlington, Va. — a spot that an energetic traveler could reach on foot from the Lincoln Memorial — is already strained by traffic, limited parking and stressed baggage systems.

“Right now, DCA already has the busiest runway in the country,” Representative Abigail Spanberger, a Virginia Democrat who opposes the proposed perimeter exceptions, said in a statement. “I’m also concerned in the wake of a recent F.A.A. analysis that found that more long-haul flights at DCA would throw the airport’s operational performance out of balance.”

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United Airlines and American Airlines, Delta’s biggest competitors, are also opposed to relaxing the perimeter rule. Those carriers argue that additional long-distance flights at Reagan National would cause passenger delays and might even waylay the F.A.A.’s reauthorization. And if the perimeter changes were passed, yet another industry tussle over which new routes could ultimately be offered would likely follow.

In an internal memo in May, the F.A.A. wrote that adding long-distance flights to Reagan National’s schedule without taking away existing ones would strain the system. Reagan National already ranks as No. 10 among U.S. airports in delays, the memo said.

But supporters of the shift consider their own unwieldy commutes to be evidence of a system in need of improvement.

In April, Delta established a nonprofit called the Capital Access Alliance to make the case for adding new exceptions to the perimeter rule, which dates to 1966 and has been updated occasionally over the years.

Joined by small businesses; West Coast companies like Columbia Sportswear and Adidas; and trade associations in states like Utah, Texas and Washington, the alliance says the perimeter rule has outlived its usefulness as a bulwark against airport congestion and competition that could have hurt Dulles — which opened in 1962 — in its early years.

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The group also says that the congestion issues that the F.A.A. has flagged are not a factor during certain times of day, creating an opening for new flights.

Delta is also hoping to operate lucrative new long-distance flights to and from Reagan National, where its current market share is 14 percent, according to a Boston Consulting Group analysis commissioned by the airline. Delta officials say they hope to establish or increase service to cities including Austin, Texas; Salt Lake City; and Seattle.

Delta has hired the influential lobbyist Jeff Miller, who is known for having Speaker Kevin McCarthy’s ear, to help its case.

Jamie Baker, an airline analyst at JPMorgan Chase & Company, said that while it was too early to predict the financial implications of exceptions to the perimeter rule for major airlines like Delta, the changes could result in reduced service to smaller cities from Reagan National.

Defenders of the perimeter rule have emphasized that possibility.

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“Cities and states that rely on convenient, on-time access to Washington as a destination or connection risk losing access,” a nonprofit called the Coalition to Protect America’s Regional Airports says on its website. The group is backed by United and dozens of smaller airports and trade groups, many of them within the current 1,250-mile perimeter.

But the lengthy journeys that lawmakers can face en route to Washington appear to have inspired some to push for new exceptions to the existing limits.

In May, Representative Hank Johnson, a Democrat from Delta’s home state of Georgia, and Mr. Owens, the Utah Republican, introduced legislation that would allow 28 new daily round-trip flights at Reagan National. Senators Raphael Warnock, also a Georgia Democrat, and Cynthia Lummis, Republican of Wyoming, introduced a similar bill in the Senate in June.

“The operations of DCA remain as they were structured in the 1960s so as to protect the ability of Dulles International Airport to grow,” Mr. Johnson said. “Those ideals have outlived their usefulness at this point.”

Among those seeking to relax the perimeter rule is Representative Chip Roy, Republican of Texas, who wants to see direct flights between Reagan National and San Antonio, parts of which are in his congressional district.

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Mr. Roy can take a direct flight from Austin to Reagan National, he said, but sometimes that flight does not arrive early enough for him to make meetings of the House Rules Committee, forcing him to use Dulles or Baltimore/Washington instead.

“It’s a little bit clunky,” Mr. Roy said.

Senator John McCain, Republican of Arizona, tried to relax Reagan National’s perimeter restrictions in the late 1990s and to get rid of the rule entirely in the late 2000s. While Mr. McCain was not able to eliminate the rule, he did succeed in winning new exceptions to create flights from Reagan National to Phoenix in the process. He continued to take flights home with connections, however, to avoid accusations of self-dealing.

The impact of the push by Mr. McCain, who died in 2018, was such that Representative Debbie Lesko, a Republican from the Phoenix area, is declining to support the effort by some of her House colleagues to loosen the perimeter rule, fearing that it could backfire on Arizona.

“We do have several direct flights to Phoenix already,” Ms. Lesko, who flies direct to Reagan National, said with a chuckle, “and so opening it up to, let’s say, Utah or things, may reduce the number of direct flights to Phoenix. So for my constituents, I don’t think I would sign onto that bill.”

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Kitty Bennett contributed research.

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Albania Gives Jared Kushner Hotel Project a Nod as Trump Returns

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Albania Gives Jared Kushner Hotel Project a Nod as Trump Returns

The government of Albania has given preliminary approval to a plan proposed by Jared Kushner, Donald J. Trump’s son-in-law, to build a $1.4 billion luxury hotel complex on a small abandoned military base off the coast of Albania.

The project is one of several involving Mr. Trump and his extended family that directly involve foreign government entities that will be moving ahead even while Mr. Trump will be in charge of foreign policy related to these same nations.

The approval by Albania’s Strategic Investment Committee — which is led by Prime Minister Edi Rama — gives Mr. Kushner and his business partners the right to move ahead with accelerated negotiations to build the luxury resort on a 111-acre section of the 2.2-square-mile island of Sazan that will be connected by ferry to the mainland.

Mr. Kushner and the Albanian government did not respond Wednesday to requests for comment. But when previously asked about this project, both have said that the evaluation is not being influenced by Mr. Kushner’s ties to Mr. Trump or any effort to try to seek favors from the U.S. government.

“The fact that such a renowned American entrepreneur shows his interest on investing in Albania makes us very proud and happy,” a spokesman for Mr. Rama said last year in a statement to The New York Times when asked about the projects.

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Mr. Kushner’s Affinity Partners, a private equity company backed with about $4.6 billion in money mostly from Saudi Arabia and other Middle East sovereign wealth funds, is pursuing the Albania project along with Asher Abehsera, a real-estate executive that Mr. Kushner has previously teamed up with to build projects in Brooklyn, N.Y.

The Albanian government, according to an official document recently posted online, will now work with their American partners to clear the proposed hotel site of any potential buried munitions and to examine any other environmental or legal concerns that need to be resolved before the project can move ahead.

The document, dated Dec. 30, notes that the government “has the right to revoke the decision,” depending on the final project negotiations.

Mr. Kushner’s firm has said the plan is to build a five-star “eco-resort community” on the island by turning a “former military base into a vibrant international destination for hospitality and wellness.”

Ivanka Trump, Mr. Trump’s daughter, has said she is helping with the project as well. “We will execute on it,” she said about the project, during a podcast last year.

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This project is just one of two major real-estate deals that Mr. Kushner is pursuing along with Mr. Abehsera that involve foreign governments.

Separately, the partnership received preliminary approval last year to build a luxury hotel complex in Belgrade, Serbia, in the former ministry of defense building, which has sat empty for decades after it was bombed by NATO in 1999 during a war there.

Serbia and Albania have foreign policy matters pending with the United States, as both countries seek continued U.S. support for their long-stalled efforts to join the European Union, and officials in Washington are trying to convince Serbia to tighten ties with the United States, instead of Russia.

Virginia Canter, who served as White House ethics lawyer during the Obama and Clinton administrations and also an ethics adviser to the International Monetary Fund, said even if there was no attempt to gain influence with Mr. Trump, any government deal involving his family creates that impression.

“It all looks like favoritism, like they are providing access to Kushner because they want to be on the good side of Trump,” Ms. Canter said, now with State Democracy Defenders Fund, a group that tracks federal government corruption and ethics issues.

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Craft supplies retailer Joann declares bankruptcy for the second time in a year

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Craft supplies retailer Joann declares bankruptcy for the second time in a year

The craft supplies and fabric retailer Joann filed for bankruptcy for the second time in less than a year, as the chain wrestles with declining sales and inventory shortages, the company said Wednesday.

The retailer emerged from a previous Chapter 11 bankruptcy process last April after eliminating $505 million in debt. Now, with $615 million in liabilities, the company will begin a court-supervised sale of its assets to repay creditors. The company owes an additional $133 million to its suppliers.

“We hope that this process enables us to find a path that would allow Joann to continue operating,” said interim Chief Executive Michael Prendergast in a statement. “The last several years have presented significant and lasting challenges in the retail environment, which, coupled with our current financial position and constrained inventory levels, forced us to take this step.”

Joann’s more than 800 stores and websites will remain open throughout the bankruptcy process, the company said, and employees will continue to receive pay and benefits. The Hudson, Ohio-based company was founded in 1943 and has stores in 49 states, including several in Southern California.

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According to court documents, Joann began receiving unpredictable and inconsistent deliveries of yarn and sewing items from its suppliers, making it difficult to keep its shelves stocked. Joann’s suppliers also discontinued certain items the retailer relied on.

Along with the “unanticipated inventory challenges,” Joann and other retailers face pressure from inflation-wary consumers and interest rates that were for a time the highest in decades. The crafts supplier has also been hindered by competition from others in the space, including Michael’s, Etsy and Hobby Lobby, said Retail Wire Chief Executive Dominick Miserandino.

“It did not necessarily learn to evolve like its nearby competitors,” Miserandino said of Joann. “Not many people have heard of Joann in the way they’ve heard of Michael’s.”

Joann is not the first retailer to continue to struggle after going through bankruptcy. The party supply chain Party City announced last month it would be shutting down operations, after filing for and emerging from Chapter 11 bankruptcy in 2023.

Over the last two years, more than 60 companies have filed for bankruptcy for a second or third time, Bloomberg reported, based on information from BankruptcyData. That’s the most over a comparable period since 2020, when the COVID-19 pandemic kept shoppers home.

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Discount chain Big Lots filed for bankruptcy last September, and the Container Store, a retailer offering storage and organization products, declared bankruptcy last month. Companies that rely heavily on brick-and-mortar locations are scrambling to keep up with online retailers and big-box chains. Fast-casual restaurants such as Red Lobster and Rubio’s Coastal Grill have also struggled.

High prices have prompted consumers to pull back on discretionary spending, while rising operating and labor costs put additional pressure on businesses, experts said. The U.S. annual inflation rate for 2024 was 2.9%, down from 3.4% in 2023. But inflation has been on the rise since September and remains above the Federal Reserve’s goal of 2%.

If a sale process for Joann is approved, Gordon Brothers Retail Partners would serve as the stalking-horse bidder and set the floor for the auction.

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U.S. Sues Southwest Airlines Over Chronic Delays

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U.S. Sues Southwest Airlines Over Chronic Delays

The federal government sued Southwest Airlines on Wednesday, accusing the airline of harming passengers who flew on two routes that were plagued by consistent delays in 2022.

In a lawsuit, the Transportation Department said it was seeking more than $2.1 million in civil penalties over the flights between airports in Chicago and Oakland, Calif., as well as Baltimore and Cleveland, that were chronically delayed over five months that year.

“Airlines have a legal obligation to ensure that their flight schedules provide travelers with realistic departure and arrival times,” the transportation secretary, Pete Buttigieg, said in a statement. “Today’s action sends a message to all airlines that the department is prepared to go to court in order to enforce passenger protections.”

Carriers are barred from operating unrealistic flight schedules, which the Transportation Department considers an unfair, deceptive and anticompetitive practice. A “chronically delayed” flight is defined as one that operates at least 10 times a month and is late by at least 30 minutes more than half the time.

In a statement, Southwest said it was “disappointed” that the department chose to sue over the flights that took place more than two years ago. The airline said it had operated 20 million flights since the Transportation Department enacted its policy against chronically delayed flights more than a decade ago, with no other violations.

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“Any claim that these two flights represent an unrealistic schedule is simply not credible when compared with our performance over the past 15 years,” Southwest said.

Last year, Southwest canceled fewer than 1 percent of its flights, but more than 22 percent arrived at least 15 minutes later than scheduled, according to Cirium, an aviation data provider. Delta Air Lines, United Airlines, Alaska Airlines and American Airlines all had fewer such delays.

The lawsuit was filed in the United States District Court for the Northern District of California. In it, the government said that a Southwest flight from Chicago to Oakland arrived late 19 out of 25 trips in April 2022, with delays averaging more than an hour. The consistent delays continued through August of that year, averaging an hour or more. On another flight, between Baltimore and Cleveland, average delay times reached as high as 96 minutes per month during the same period. In a statement, the department said that Southwest, rather than poor weather or air traffic control, was responsible for more than 90 percent of the delays.

“Holding out these chronically delayed flights disregarded consumers’ need to have reliable information about the real arrival time of a flight and harmed thousands of passengers traveling on these Southwest flights by causing disruptions to travel plans or other plans,” the department said in the lawsuit.

The government said Southwest had violated federal rules 58 times in August 2022 after four months of consistent delays. Each violation faces a civil penalty of up to $37,377, or more than $2.1 million in total, according to the lawsuit.

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The Transportation Department on Wednesday also said that it had penalized Frontier Airlines for chronically delayed flights, fining the airline $650,000. Half that amount was paid to the Treasury and the rest is slated to be forgiven if the airline has no more chronically delayed flights over the next three years.

This month, the department ordered JetBlue Airways to pay a $2 million fine for failing to address similarly delayed flights over a span of more than a year ending in November 2023, with half the money going to passengers affected by the delays.

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