An agreement on long-term funding for the US FAA to serve as the foundation for the country's next generation (NextGen) air traffic control system has a slim chance of passage in the US Congress before the agency's current temporary funding extension runs out at the end of March. Since 2007 the FAA has operated on short-term funding extensions as an overarching reauthorisation of funding for the agency has failed to crystallise.
Those six-month extensions support regular FAA operations, but limit its ability to secure major procurement deals or launch new projects.
NEXTGEN DEVELOPMENT
President Barack Obama and his new administration are inheriting the task of how to fund the FAA, which includes roughly $20 billion through 2025 to complete NextGen development.
Most of 2007 was marred by highly-charged battles between commercial, general and business aviation operators over a controversial $25 per flight user fee as a backbone to fund 21st Century air traffic control operations. FAA reauthorization failed last year as the funding debate continued and highway amendments to the US Senate version of the bill stymied its passage in that chamber of congress. The US House approved its version of the legislation in September 2007.
US Senator Jay Rockefeller was a key proponent in attempting to pass FAA reauthorisation in 2008, but an aide to the legislator acknowledges passage of last year's failed bill in the short term is doubtful.
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"The reality is no one is sure we can get full reauthorisation done in three months," he says. Instead it appears the US Congress could scrap its previous funding proposals and seek alternative methods to support FAA.
In December 2008 Air Transport Association of America chief executive James May championed a funding overhaul and highlighted support from Senator Rockefeller in looking outside of traditional funding mechanisms to fund FAA projects.
Of particular interest to ATA's May are tax credit bonds - public-private partnerships that offer a tax incentive for investors in a given project. May believes those types of bonds could help bridge the gap between competing interests in the industry.
While the administration of former President Bush opposed tax credit bonds, May says ATA held discussions with the Obama transition team about those mechanisms.
But the reality is President Obama's top priority is winning support from Congress for a roughly $775 billion countrywide economic stimulus package to reverse the effects of a year-long recession.
TIGHT TIMEFRAME
FAA reauthorisation could also be overshadowed by finalising a highway bill, warns Aerospace Industries Association vice-president of civil aviation Dan Elwell. He explains most aviation stakeholders would agree passage of FAA reauthorisation this year is critical, but acknowledges the difficulty in predicting if a new agreement can successfully be ushered through the US Congress in that timeframe.
US Senator Jay Rockefeller led efforts to pass the bill in 2008
For more on the race for a share of Barack Obama's key economic stimulus package: flightglobal.com/stimulus
Source: Airline Business
