Airlines Unveil Statement of Principles to Fund System
Transformation
ANN
Note: ANN is participating in a number of conference calls
and interviews throughout the day now that the cards finally appear
to be on the table, as far as the airlines are concerned.
Preliminary analysis does not bode well for the General
Aviation community in that the ATA proposal both seems to be a
power grab over what ATA claims is 'commercial' airspace as well as
an expense reduction program that would transfer 1.5-2 billion
dollars of annual costs to the GA community for a system that is
admittedly custom-designed to cater to the airline
industry.
ATA claims that the services provided to the GA
community are just as expensive as those provided to the
airlines... described simply as a "a blip is a blip." ANN will be
reporting on these issues aggressively and will keep you updated.
-- Jim Campbell, Aero-News Network, Editor-In-Chief
As expected, the Air
Transport Association (ATA), the industry organization representing
leading U.S. airlines, has just announced the unified vision of its
19 member carriers for funding a next-generation air traffic
control system as part of the FAA Airport and Airway Trust Fund
(AATF) reauthorization.
For the first time in more than a decade, ATA member airlines
collectively endorsed a Statement of Principles, calling for a new
cost-based approach to operate, maintain and modernize the National
Airspace System (NAS). Under this unified effort, ATA has launched
a national campaign, Smart Skies: A blueprint for the future, aimed
at educating the public and lawmakers on the need to smartly
modernize the NAS and to strive toward implementing a fair funding
mechanism.
“We are at a historic juncture for U.S. aviation and ATA
member airlines have joined together in a call for change,”
said ATA President and CEO James C. May (below, right).
“Our
country’s economy depends on aviation and, without some
change in the status quo, the system will not be equipped to meet
future demand.”
Speaking at a media briefing, May was joined by Campbell-Hill
Aviation Group Chairman Dr. Brian Campbell, who released his
firm’s report: Commercial Aviation and the American Economy.
The report summarizes the estimated impact of commercial aviation
on the U.S. economy in 2004, at the state and congressional
district levels.
“The commercial aviation sector has a significant impact
on the U.S. economy, based on air transportation and airport
services, manufacturing, and travel and tourism expenditures from
air passengers,” said Campbell. “In 2004 alone,
commercial aviation drove $1.2 trillion in economic activity, $380
billion in personal earnings and 11.4 million jobs.”
May noted that the AATF reauthorization process provides a
one-time opportunity to create a structure that ties funding
directly to use of the system. “Trust Fund revenues are
unpredictable because they depend upon fluctuating ticket prices
and aircraft size,” he said. “How can we determine how
best to spend federal funds when there’s no way of knowing
how much revenue there will be? As long as there is no direct link
between funding and costs, much needed modernization cannot
occur.”
In addition to continued General Fund contributions, the ATA
guiding principles state that the new mechanism for operating,
maintaining and modernizing the NAS must include the following 10
principles:
1. Congress must determine and impose a specific schedule of
mandatory user charges – directly and proportionally linking
system use with system costs – which are fair, equitable and
simple.
2. Each user category may rely on its preferred collection
mechanism, providing that each such category does not impose any
burden on commercial aviation that is not cost-based.
3. Transition over a
reasonable period to a metric, in lieu of existing commercial
aviation taxes, for assessing aircraft charges based on a
percentage formula that incorporates only number of
“departures” and “time in system.” The
departure charge may vary for nighttime operations and size of
community.
4. Revenue to be segregated from other government revenue and
dedicated exclusively to airspace system operations, maintenance
and enhancements.
5. A dedicated revenue stream, ensuring that revenues are spent
in a timely manner for the intended purpose, without additional
congressional action.
6. Use of a dedicated funding stream that is authorized to
support bond financing, ensuring maximum leverage of available
financial resources.
7. A reformed administrative structure, providing for a direct
role in governance proportional to the extent of each user
category’s financial contribution to the operation,
maintenance and enhancement of the national airspace system.
8. Autonomous authority granted to the ATO, to facilitate
effective cost control and decision-making.
9. Operators of piston-powered general aviation aircraft should
continue to pay through their fuel tax mechanism.
10. Any new FAA funding method established must be fair and
based on reasonable indicia of use of the aviation system, as
obtained from a credible, reliable and transparent FAA cost
accounting system.
ATA airline members
transport more than 90 percent of all U.S. airline passenger and
cargo traffic. ATA Airline Members comprise: ABX Air, Inc., Alaska
Airlines, Inc., Aloha Airlines, American Airlines, Inc., ASTAR Air
Cargo, Inc., ATA Airlines, Inc., Atlas Air, Inc., Continental
Airlines, Inc., Delta Air Lines, Inc., Evergreen International
Airlines, Inc., FedEx Corporation, Hawaiian Airlines, JetBlue
Airways Corp., Midwest Airlines, Inc., Northwest Airlines, Inc.,
Southwest Airlines Co., United Airlines, Inc., UPS Airlines and US
Airways, Inc.; ATA Airline Associate Members include: Aeromexico,
Air Canada, Air Jamaica Ltd., Mexicana; ATA Industry Members
include: Aero Instruments & Avionics, Inc., ATR Aircraft,
Benfield Insurance, Bombardier Regional Aircraft, Cendant Travel
Distribution Services, Embraer, Honeywell Aerospace, KPMG, Metron
Aviation, Inc., Pratt & Whitney, The Royal Bank of Scotland,
plc, Sensis Corp., SITA, TDG Aerospace, Inc., TIMCO Aviation
Services, Unisys Global Transportation, Universal Air Travel Plan,
Inc. (UATP), USI Insurance and WinWare, Inc.