WashingtonWire - 2000-03-20

<B>WashingtonWire</B>

<B>Air Fees To Be Collected?</B>

If Congress elected to collect annual fees from the airlines for slots at the four high- density airports, the government could realize added revenue of some $500 million each year, the Congressional Budget Office estimated. The CBO conceded that estimating the anticipated revenue from slot leases is difficult because slot values vary by airport and time of day and season, as well as market conditions. Further, the CBO said, the new Federal Aviation Administration reauthorization bill is expected to lift the slot restrictions at New York's JFK and LaGuardia in 2007 and at Chicago O'Hare in 2002.

In estimates of other ways to raise revenue from aviation, the CBO said FAA could collect fees for air traffic control services that reflect the agency's cost to provide the services. This could add some $2 billion annually to the treasury. Fees based on marginal costs would affect different types of airline operations differently, with carriers mainly using hub-and-spoke networks paying more. If Congress were to eliminate the Essential Air Service program, which subsidizes service to specified small communities, the government could save $480 million from 2001 to 2010, the CBO said.

<B>FAA To Reduce Runway Incursions</B>

In an effort to reduce the number of runway incursions--near misses between aircraft, or ground vehicles and aircraft--the Federal Aviation Administration announced a number of new initiatives, including a national runway incursion summit in June to highlight the problem and some potential solutions. FAA runway safety program director John Mayrhofer on March 14 said the summit will be preceded by regional meetings during the next three months to discuss solutions on a local level. FAA also unveiled details of a one-year test to encourage pilots who have been involved in runway incursions to discuss the incidents with FAA safety inspectors. In return, FAA said that, "under most circumstances," it would take only administrative action against the pilots when necessary.

Mayrhofer said FAA's central approach to reducing the problem of runway incursions is through education and training of airport personnel, pilots, controllers and others involved in landing and takeoff operations. The agency continues to pursue development of high-tech radar equipment to provide a back-up means of alerting personnel when an incursion is imminent, however. By September of 2002, Mayrhofer said, 34 major U.S. airports will be outfitted with Airport Movement Area Safety Systems. Development also is underway on less expensive surface radar that can be deployed at less busy airports.

<B>DOT Gives FAA Clean Audit</B>

The Federal Aviation Administration received a clean audit from the U.S. Department of Transportation's Inspector General for fiscal year 1999, marking the first time the agency has achieved approval of its financial statements since the audits began in fiscal year 1992.

The report presents an unqualified or "clean" opinion on the full set of FAA financial statements. In past years, auditors were unable to express an opinion and issued disclaimers. FAA statements include assets totaling $25.5 billion, obligations totaling $14.2 billion, and property and equipment spread across the country. The clean audit represents a major financial turnaround for FAA, said administrator Jane Garvey and provides a more stable foundation for the future.