FAA Seems Unwilling To Budge Over 'Extortionate' Demands For $500K In Fees

Aero-News Analysis/Commentary by ANN CEO/E-I-C Jim Campbell

Just about the time that you thought the FAA couldn't get any more difficult to understand... or justify... comes news that the Feds are ratcheting up the pressure on EAA to pay nearly $500K in additional fees to staff the annual Fly-In in Oshkosh, WI.

What was a VERY short notice request for negotiations (just a few weeks ago) towards possible reimbursement for FAA expenditures now appears to have accelerated to an outright demand... and, worse, a threat. To compound matters, the situation appears to be on a short fuse, ostensibly intended to force EAA's hand as soon as possible.

What we know is this... just a few weeks ago, the FAA notified EAA that they wanted to discuss reimbursement for the upcoming 2013 Fly-In... Despite the fact that the FAA had already budgeted the event and its participation, AND that the funds are already allocated from the General Fund AND that several hundred thousand dollars are realized on Oshkosh-associated fuel taxes alone; the FAA has refused to let up or compromise on their demands and are now threatening to pull controllers from the event. If the word 'extortion' comes to mind, you're way behind us...

The architect for this battle appears to be the FAA's COO, J David Grizzle, who was appointed Chief Operating Officer of the Federal Aviation Administration's Air Traffic Organization on April 14, 2011. Grizzle has already stiffed the Lakeland event for fees and there are reports of multiple demands being made to a number of aviation-intensive events around the country for additional fees in order for the FAA to provide the services that they are mandated by law to provide.

Initial investigations seem to suggest that the FAA does not have the legal wherewithal to demand such fees and to threaten the withholding of services. There is a strong Capital Hill desire to avoid user fees and a significant portion of our elected officials have come out strongly against such funding mechanisms... further; they have NOT APPROVED any changes that would allow the FAA to start exacting user fees, at will. The move is also highly aspect in that rough estimations of the taxes paid (above and beyond the income and other taxes that are stuffed into the governments coffers each year), to include fuel taxes, transportation fees (like those paid in airline taxes for those flying in commercially or gas taxes for those driving in) as well as other revenue generators, well exceeds the costs demanded by the FAA. One estimate suggests that the aero-fuel taxes, alone, associated with Oshkosh attendance make up more than half the $500K that the FAA is trying to squeeze out of EAA -- and that if you add up all the taxes associated with the event, that the total stands at well over 1 million bucks and may exceeed $1.5M.

In comments released to Oshkosh media, EAA Chairman Jack Pelton noted that, "“We had hoped cooler heads would prevail and this issue would be resolved. Their response was write the check, sign the contract or we’re not sending controllers. It was a much more aggressive negotiation than just trying to work things out.”

What is particularly worrisome is the fact that the FAA is now officially (and on the record) threatening to withhold services, in the form (primarily) of controller staffing, for the event... and for those of you who think that Oshkosh might get along just fine without a staffed tower, we have to ask you to consider the BIG BAT that the FAA wields in this matter... the critical need for waivers and other permissions to conduct this event safely, speedily and with some sense of organization. The Fly-In requires a number of waivers and special permissions in order to see that the thousands of airplane that fly in each year can, indeed, be accommodated by Wittman Field. The use of taxiways as runways, special arrival procedures and other issues ALL require FAA approval and the Feds have made it clear that without the money that they have demanded, that there will NO such waivers/permissions.

Folks... If those waivers are not granted, Oshkosh becomes a nightmare, the level of safety is drastically impacted and the potential for injury increases greatly.

In other words, the FAA thinks they have EAA over the barrel and are not bashful about saying so. What is also clear is that the FAA is willing to risk the safety of GA pilots to throw a few more sheckels in their piggy bank.

Interestingly; reaction from elected officials has been swift and negative about the FAA's plan. While a number of Wisconsin politicians are carrying the weight of the protest, a number of high-profile Senators and Congressman, nearly 30 from the most recent reports, appear to be ready to call the FAA on the carpet for this decision. A letter sent to the FAA (by these lawmakers) says, in part, "This shift in policy by the FAA to charge fees for air traffic services is tantamount to an imposition of a new user fee on general aviation. Through the appropriations process, Congress has previously made clear its opposition to new user fees. Further, the FAA was the only federal agency to be given flexibility in addressing the impacts of sequestration. As such, for the FAA to demand additional payments for items that have been budgeted for in previous years is completely unacceptable.”

Unfortunately; EAA appears to be fighting this battle with half-hearted support from the rest of the alphabet associations. While a few organizations have given the matter some publicity (although AOPA's public response was embarrassingly self-serving), the addition of these organization's lobbying power has not been all that easy to discern, and in some cases, requests for aid 'on the hill' has not been answered.

For the moment, it looks as if EAA will have little choice but to knuckle under to the demands of the FAA in order to protect its visitors and members... despite the FAA's overt and questionable willingness to risk them.

Above and beyond the impact to America's pre-eminent aviation event, there is the pressing issue of where and when the FAA will strike next. EAA Spokesman, Dick Knapinski, reports that, “This is bigger than AirVenture. They’re telling other similar shows that they’re going to begin charging for air traffic services, too. For other events that are relatively small compared to AirVenture, that could mean some serious costs.”

Indeed, ANN is hearing rumors that one or more events could be imperiled by FAA decision-making... a death blow to a community already reeling from nearly 100 airshow and Fly-In cancellations as a result of Washington's willingness to attack and victimize aviation interests all over the nation.

The matter has raised questions, eyeballs, and outrage throughout the aviation community and once the criticality of the EAA issue has reached some resolution, temporarily or permanently, ANN hopes and recommends that the FAA, Grizzle (shown here) and Administrator Huerta be investigated for the legality of their actions as well as the blatantly poor decision-making that has led to this standoff. There is no excuse for the short notice, there seems to be no legal validity for their demands... and their insistence on doing so in regards to a matter that has the potential to severely impact aviation safety leave many (ANN included) to believe that not only is an investigation required, but there may be enough wrong-doing and questionable activity to demand the resignation or firing of Grizzle, Huerta... or both.

ANN has multiple inquiries into a number of contacts and offices for addition data related to this story, as appropriate and available, we will update this story.

FMI: www.eaa.org, www.faa.gov