Washington Wire - 1997-06-23

<B>Clinton Names New FAA Chief

President Clinton has nominated Jane Garvey, the acting administrator of the Federal Highway Administration, to be the next FAA administrator, subject to Senate confirmation. The post has been vacant since David Hinson resigned last fall.

Garvey has served as the FHWA's deputy administrator since 1993. She took over the top highway job on an acting basis in February when Rodney Slater left that post to become Transportation Secretary. Clinton also nominated George Donahue, currently the FAA's associate administrator for research and acquisitions, to be Garvey's deputy.

Donahue has been instrumental in implementing new, streamlined procurement regulations at the FAA.


New Ticket Tax Formula Proposed

Sen. William Roth (R-Del.), chairman of the Senate Finance Committee, has proposed his version of an aviation tax that differs markedly from a proposal made by his counterpart, Rep. Bill Archer (R-Texas), chairman of the House Ways and Means Committee.

Roth's proposal includes an extension of the 10 percent ticket tax for 10 years, reduction of the ticket tax to 7.5 percent for certain rural flight segments, repeal of the $6 international departure tax and imposition instead of a 10 percent tax on the domestic leg of an international ticket, and placement of a 10 percent tax on frequent flyer partner programs offered by hotels, credit card companies and other non-airline suppliers.

The main elements of the House Ways and Means package approved earlier include extension of the aviation excise taxes for five years at 7.5 percent; imposition of a new per-flight segment tax, starting at $2 and increasing to $3 by 2002; imposition of a 7.5 percent tax on payments to airlines for air travel under credit card and similar programs; an increase in the international departure tax to $15.50; creation of a new international arrival tax of $15.50; and extension of the current cargo waybill tax and general aviation fuel taxes.


Malaysian Open Skies Pact Inked

U.S. and Malaysian officials have reached agreement on an open skies aviation pact, the fifth such accord the U.S. has concluded in its drive to open up Asian air markets. The United States presently has open skies agreements with New Zealand, Brunei, Taiwan and Singapore. Talks toward a similar pact continue with representatives of South Korea.


Amtrak May Get New Cash infusion

House Transportation and Infrastructure Committee chairman Rep. Bud Shuster (R-Pa.) said he is willing to support long-term funding for Amtrak by diverting a half penny per gallon from the federal gas tax. The levy would provide Amtrak with $700 million annually to pay for its maintenance and other capital programs. Amtrak has said that it faces a shutdown by mid-1998 if a guaranteed revenue stream is not available. Meanwhile, the rail company will purchase 21 new diesel locomotives at a cost of $46 million for delivery next spring on its West Coast corridor routes. The equipment will be used to retire older diesels, some of which have been operating for 20 years.