Infrastructure Assistance A Possible Source
Word from a top trade group official is the U.S. aviation and
aerospace industries plan on asking Congress for a portion of the
$50 billion in infrastructure assistance funding. The funding was
announced by President Barack Obama September 6th in Milwaukee, WI
at Laborfest, an annual event held every Labor Day, according to
the Milwaukee Area Labor Council.
Reuters reports that Aerospace Industries Association president
and CEO Marion Blakey told the Aerospace and Defense Summit that
her organization has talked with other industry groups regarding
potential financing streams for new cockpit navigation equipment
required for air traffic modernization according to Reuters. "The
President has opened the door," Blakey told Reuters, adding that it
was up to airlines and other industry interests to work with
Congress to see what amount of money would be viable.
Obama is proposing infrastructure financing as part of a new
plan to jump-start the U.S. economy and create jobs. "Over the next
six years, we are going to rebuild 150,000 miles of our roads,"
Obama told a primarily union audience on Labor Day in Milwaukee,
WI. "We're going to lay and maintain 4,000 miles of our railways
... enough to stretch coast to coast. We're going to restore 150
miles of runways. And we're going to advance a next-generation
air-traffic control system to reduce travel time and delays for
American travelers."
While it's not really clear what the program specifics are, or
what kind of financing may be proposed, many think the NextGen
program, as it is being dubbed, carries a little more weight than
in previous "stimulus" programs. Blakey also stated the aviation
industry, which includes commercial and business jet manufacturers,
airlines and suppliers, has not yet settled on a figure for
assistance.
Marion Blakey
Replacing the aging radar-based air traffic network with a
systems relying on satellites would also require air carriers to
outfit their aircraft with additional sophisticated cockpit
displays, ground equipment and other technology and the cost could
run into the hundreds of millions of dollars, say industry
experts.
The airlines assert efficient air traffic control is in the
national interest and therefore the government should cover basic
costs. A federal trust fund currently pays for maintaining systems
run by the FAA and is funded by fees and taxes currently paid by
the airlines. Airlines contribute passenger fees, fuel taxes and
other money to a federal trust fund that pays for maintaining air
traffic services run by the FAA.