US airlines are preparing to battle on behalf of a new FAA air traffic control financing plan that would charge all aircraft, from commercial airliners to executive jets and general aviation aircraft, for services in proportion to the burden they impose on the system.
But private aviation is mobilising against the proposal, which the FAA insists is needed to pay for satellite-based navigation and other updates. FAA administrator Marion Blakey says the current financing scheme of taxes is inadequate and that in any case the 7.5% tax on airline tickets has failed to keep up with technological needs, especially as low-fare carriers take a larger share of the market, reducing the tax proceeds flowing into the agency.
The carriers, through the Air Transport Association, argue that airlines pay for 94% of the air traffic control system but use only 68% of it. Corporate, recreational and military flying are responsible for the rest. But groups representing the corporate and recreational users have vowed to vehemently fight to fend off the proposed user fees.
If the FAA secures congressional approval for the proposed charging scheme, it would enjoy broad discretion to impose fees based on the weight and size of an aircraft, what time of day it flies and how long it flies. Although the ticket tax would disappear, airports would be allowed to raise the fees they impose on passengers, the so-called Passenger Facility Charge, to fund airport improvements.
Congress has scheduled hearings on the proposal for the next few months. Approval is far from assured because several key politicians have vowed to oppose the FAA plan.
Source: Airline Business