New Fees Considered...And Another One Avoided
<H1>New Fees Considered...And Another One Avoided</H1> The government is considering levying a 20 to 25 cent "security fee" on airline passengers to help secure $150 million for the Federal Aviation Administration's operations.
In its recent budget request to Congress, Clinton administration officials asked for approval of a new user fee program for the FAA and said that studies are underway to identify just what fees could be levied.
FAA administrator David Hinson was questioned extensively about the notion of new fees in hearings before the House Transportation Appropriations Subcommittee. He said that while the subject remains under study, three fees would probably be assessed: a passenger security fee; "overflight" charges on international carriers that fly over the United States without landing but that use the nation's air traffic control services; and fees for private companies that construct towers and buildings that obstruct airport traffic patterns.
<b>...And Another One Avoided</B>
The travel industry has ducked another congressional attempt to add user fees to fund general government operations: A proposed border crossing fee was removed from immigration reform legislation sponsored by Sen. Alan Simpson (R-Wy.). Travel industry lobbyists had protested that the charge would single out the industry and that the tax would not result in appreciable improvements to immigration services.
Bets Are Off
The Department of Transportation has recommended that no changes be made in laws that ban gambling on international flights to the United States.
Although no international carrier currently offers on-board video gambling, Singapore Airlines, British Airways and Virgin Atlantic have announced their intention to provide in-flight games of chance within the next year. Congress is considering legislation that would create a national commission on gambling and its impact on the nation.
If foreign airlines do offer in-flight gambling in non-U.S. markets, substantial revenues could be diverted from U.S. carriers, dampening their ability to be competitive, according to DOT.