Speaking at the Network 2005 gala lunch, FAA chief operating officer Russ Chew highlighted how cheaper tickets are affecting the organisation's financial planning. "Lower ticket prices mean lower unit revenues per flight for the Trust Fund," he said. The fund contributes just over three-quarters of the FAA's annual budget. "Since 1999 we have seen a 31% decrease in revenue from the ticket tax." This is one reason why the FAA needs to become more efficient, he said. Its new structure, called the Air Traffic Organisation, will result in annual savings of $1.5-2 billion over the next 10 years.
Source: Airline Business