Washington Wire: Senate Bill Shifts FAA Funding To Private Jets

The Senate Committee on Commerce, Science, and Transportation last week approved a proposal that would shift a large portion of the cost of paying for air-traffic control to private aviation, including corporate jets. Sens. Jay Rockefeller (D-W.V.) and Trent Lott (R-Miss.) this month proposed the bill that would phase out the 4.3 cents-per-gallon aviation fuel tax paid by commercial airlines and replace it with a $25 per-flight surcharge on private aviation. Fuel taxes on "high-end" private jets would be raised to 49.1 cents per gallon. "When congestion increases, small communities are the first to lose flights or service. We must modernize air traffic control systems and build new runways in order to keep commerce and people moving everywhere," Rockefeller said. "The only way to pay for these improvements is to spread the cost fairly among all users of the system." The Rockefeller-Lott proposal is similar to one made in President George W. Bush's fiscal 2008 budget proposal in that it would shift additional Federal Aviation Administration funding responsibility to private aviation. The legislation wouldn't, however, affect planes that operate on piston-fired engines or propellers. Rockefeller and Lott are the chairman and ranking Republican, respectively, of the Senate aviation operations, safety, and security subcommittee. Both also serve on the Senate Finance Committee, which has jurisdiction over taxes. Lott said the changes are long overdue to ensure the air traffic control system is sustainable in the future. "Aviation is far too critical to American passengers and businesses for us to be satisfied with an inefficient and aging national system," Lott said. "We have tremendous demand for more capacity, and modernization is essential for future economic growth."

The proposal drew a rebuke from the National Business Aviation Association, which has opposed the Bush administration's proposal to shift more of the cost of funding FAA onto private aviation. "User fees should not be mistaken for a modernization plan, and the airlines shouldn't be given a financial windfall at the expense of general aviation," NBAA president and CEO Ed Bolen said. "This underscores the need for all NBAA members to voice their concerns about user fee proposals with their members of Congress." James May, chief executive of the Air Transport Association, which represents the major carriers, applauded the proposal. "The Rockefeller-Lott proposal reaffirms the absolute need for a modern, fair and dependable funding stream to respond to the growing demand for air transportation," May said.

Airlines Balk At DHS Fingerprinting Requirement
U.S. airlines expressed disapproval with a Department of Homeland Security directive to fingerprint foreign nationals departing the United States. "The plan is as ill-conceived as it is surprising," James May, president of the Air Transport Association, wrote in a May 8 letter addressed to White House homeland security advisor Frances Townsend. Foreign nationals currently are fingerprinted upon entering the United States. The DHS plan would reconcile those entries with departures to confirm visitors have left the country. ATA said they shouldn't be saddled with such a responsibility, which would be better served by government agencies. May said requiring airlines to conduct the fingerprinting would slow checking procedures. "Inexplicably, DHS intends to saddle airlines with that responsibility," May wrote in the letter. "That would wrongly delegate an inherently government, immigration and security-related function to the private sector."

Airlines Upgrade Navigation System to NextGen
Major U.S. airlines are upgrading their fleet navigation systems in response to a Federal Aviation Administration directive that the government says will facilitate more precise approaches at some airports and save fuel. FAA said the NextGen modernization program will increase safety, speed flights and save money. "Performance-based navigation is an important part of the NextGen modernization plan," FAA administrator Marion Blakey said. In addition to major safety benefits, airlines said the new systems will create reduced flight times, significant fuel conservation and millions of dollars in fuel savings. FAA said it is extending the reach of NextGen to the international aviation community, and is pursuing harmonization with several countries though bilateral and multilateral efforts.