<B> Washington Wire</B>
By Barbara Cook
<B>Aviation Groups Protest User Fees </B>
Despite growing concerns over the Clinton Administration's proposal to add $6 billion in aviation user fees, lobbyists predict Congress "won't sniff" at it this year.
In the recently released fiscal year 1999 budget, the administration indicated it wants to replace the existing aviation excise taxes with cost-based user fees. According to the budget plan, the new fees would go into effect before the old taxes expire.
Meanwhile, the current Airport and Airway Trust Fund is expected to swell with an $8 billion surplus by the end of fiscal 1999, according to estimates from the Office of Management and Budget.
The Air Transport Association registered its concern over the Clinton budget and its proposals for aviation taxes in a recent letter to House Ways and Means Committee Chairman Rep. Bill Archer (R-Texas). The airlines oppose any new charges levied on the aviation industry until a detailed cost accounting of the Federal Aviation Administration's operations can justify these fees.
<a name="story2"><B>FAA Pilots Navigation System</B>
The Federal Aviation Administration's Miami Air Route Traffic Control Center is testing a new satellite-based air route structure that would cover the Caribbean and South America. Aviation experts predict a dramatic increase in airline traffic in these regions.
The current system in place, which guides flights between Florida and the Caribbean, is limited to routes passing over five ground-based navigational aids that route through Puerto Rico. The experimental route structure adds 13 satellite-generated routes, boosting the system's capacity without requiring the installation of more ground-based navigational aids. Eleven airlines are participating in this test, including American Airlines, which by itself is retrofitting 64 Boeing 727s with Global Positioning System receivers. When fully implemented, the system is expected to decrease delays on service to Latin America and enable more efficient handling of air traffic.
<a name="story3"><B>Amtrak Purchases New Trains</B>
Amtrak has awarded GEC Alsthom Transportation, Hornell, N.Y., a $100 million contract to build new passenger trains for the San Diego corridor. The eight, five-car train sets are set to begin service between Los Angeles and San Diego in two years. Financing for the deal, meanwhile, comes from legislation signed late last year that provides the rail line with $2.3 billion in capital investment funds. Still, Amtrak maintains that it will need $4 billion over the next five years to upgrade its equipment.
<a name="story4"><B>Open Skies Spurs U.S.-Canada Traffic </B>
The U.S.-Canada open skies agreement, signed three years ago on Feb. 24, already has sparked a 37 percent jump in air travel between the two countries, the Department of Transportation said. Total passenger traffic between the two nations has increased to 16.6 million annually, DOT said, up from 12.1 million before the accord was implemented. In 1994, there were 54 nonstop markets with annual traffic surpassing 50,000 passengers, DOT said. By 1997, that number increased to 77 markets.
<a name="story5"><B>ARC Online Sales Exceed 3,000</B>
Travel agencies reporting their weekly sales electronically through the Airlines Reporting Corp.'s Interactive Agent Report system now exceed 3,000, officials said. ARC is inviting agents to become acquainted with the system via its Website at www.airreport.com, or by calling 813-612-3036.