FAA Reauthorization Bill Status

[Furloughed80]

AP
Ahead of the Bell: FAA Reauthorization
Thursday September 20, 6:09 am ET House Vote Likely on FAA Reauthorization; Major Airlines, White House Oppose Bill
WASHINGTON (AP) -- Commercial airlines and the White House oppose key parts of a Federal Aviation Administration funding bill the House of Representatives is expected to pass Thursday.
Congress has until Sept. 30 to reauthorize the FAA and possibly raise taxes and fees to pay for upgrades to the air traffic control system and other aviation programs. Commercial airlines are battling corporate jets and small plane operators over what share of the cost they each should shoulder after a summer in which travel delays reached record highs.
After the House Ways and Means Committee passed the reauthorization bill Tuesday, Air Transport Association President and Chief Executive James C. May said the "minimal increases in corporate plane fuel taxes represent a 'business as usual' approach" and urged lawmakers to instead pass true "cost-based funding reform."
The ATA, whose members include Continental Airlines Inc., Delta Air Lines Inc. AMR Corp.'s American Airlines, UAL Corp.'s United and others, contend that corporate aviation does not pay its fair share of fees based on the amount of services it uses.
The White House on Wednesday issued a statement that said if the current version of the bill were presented to President Bush, his senior advisers would recommend a veto. The administration also favors a closer alignment of FAA revenue with its costs through fees linked to system usage.
"While the administration is pleased that (the bill) adopts cost-based registration and certification fees, (it) strongly urges the House to adopt cost-based financing more broadly," according to the White House statement.
But Ed Bolen, president and CEO of the National Business Aviation Association, hailed the legislation for dedicating the additional tax revenue exclusively to modernization and for rejecting user fees. The group represents more than 8,000 companies and other operators of private aircraft.
And not all ATA members endorse its financing plan for the FAA. JetBlue Airways Corp. last month took the unusual step of publicly splitting from the trade group in letters sent by its president and CEO Dave Barger to House and Senate leaders.
Forest Hills, N.Y.-based JetBlue said the ATA proposal to tax passengers based on the distance between their origin and final destination, instead of actual miles flown on connecting flights, penalizes JetBlue and other airlines that avoid hubs and rely primarily on nonstop, point-to-point service.
Barger's letter said the ATA proposal would "mislead Congress into legislating which airlines using the (air traffic control) system pay their fair share and which airlines are provided statutory exemptions."
The FAA on Aug. 30 awarded a ITT Corp. a contract worth up to $1.8 billion to build the first portion of a new satellite-based air traffic control system. Upgrading the system used to manage commercial and general aviation traffic will help reduce air and runway congestion and operating costs, but will take nearly 20 years to complete and cost more than $15 billion.

 

[mynameisjim]

May said the "minimal increases in corporate plane fuel taxes represent a 'business as usual' approach" and urged lawmakers to instead pass true "cost-based funding reform."
...
"While the administration is pleased that (the bill) adopts cost-based registration and certification fees, (it) strongly urges the House to adopt cost-based financing more broadly," according to the White House statement.

So the government won't be happy until there are user fees. Does anyone think that gas taxes will go away once they fund the FAA with user fees? Any chance we can delay this until a new administration starts?

 

[BoilerUP]

Any chance we can delay this until a new administration starts?

Yup.

Bill passes the House and Senate. President vetos the bill. Bickering and infighting between politicians and special interests commences.

Repeat ad nauseum until January of 2009.

 

[mynameisjim]

The best part is that both my employer and AOPA can use my money to fight each other

 

[Andy Neill]

So the government won't be happy until there are user fees. Does anyone think that gas taxes will go away once they fund the FAA with user fees? Any chance we can delay this until a new administration starts?

An authorization bill passed by a Democratic House and a Democratic Senate is threatened to be vetoed by a Republican President. Do you think the results will be better with a Democratic President?

 

[The_Russian]

If this passes, many of us will be furloughed. Some airlines will die and the FAA may lose much of the income they would have received otherwise. Not to mention that the FAA inspectors may go with the certificates as they lose their operators.

Oh, and watch for concessionary contracts.

 

[N1atEcon]

If this passes, many of us will be furloughed. Some airlines will die and the FAA may lose much of the income they would have received otherwise. Not to mention that the FAA inspectors may go with the certificates as they lose their operators.

Oh, and watch for concessionary contracts.

"Please!" anything else you want to throw in there Chicken little?

 

[bravodude]

Is the age 60 rule in their somewhere. i hope not

 

[Furloughed80]

Yes, age 65 is included in this bill. If this bill is vetoed it would be a significant set back for age 65.

 

[Furloughed80]

WASHINGTON (AP) -- Commercial airlines are counting on a probable White House veto for a Federal Aviation Administration funding bill they oppose because it does not fairly link fees to system use.
The Air Transport Association, whose members include Continental Airlines Inc., Delta Air Lines Inc. AMR Corp.'s American Airlines, UAL Corp.'s United and others, lobbied against the bill, which easily passed the House of Representatives on Thursday.
Congress has until the end of the month to reauthorize the FAA and possibly raise taxes and fees to pay for upgrades to the air traffic control system and other aviation programs.
Commercial airlines are battling corporate jets and small plane operators over what share of the cost they each should shoulder after a summer in which travel delays reached record highs.
The airline trade group contends that corporate aviation does not pay its fair share of fees based on the amount of services it uses. The Senate is working on similar legislation.
The White House on Wednesday issued a statement that said President Bush's senior advisers would recommend a veto of the current version of the bill partly because the administration also favors a closer alignment of FAA revenue with its costs through fees linked to system usage.
The bill would increase the jet fuel tax for noncommercial planes to 30.7 cents per gallon from 21.8 cents, and the aviation gasoline tax to 24.1 cents from 19.3 cents. It would also raise the cap on fees airports can charge passengers for capital improvements to $7 from $4.50.
Ed Bolen, president and CEO of the National Business Aviation Association, hailed the House bill for dedicating the additional tax revenue exclusively to modernization and for rejecting user fees. The group represents more than 8,000 companies and other operators of private aircraft.
The FAA on Aug. 30 awarded a ITT Corp. a contract worth up to $1.8 billion to build the first portion of a new satellite-based air traffic control system.
Upgrading the system used to manage commercial and general aviation traffic will help reduce air and runway congestion and operating costs, but will take nearly 20 years to complete and cost more than $15 billion.