Fri, May 08, 2009
Administration's Continuing Assault On 'All Things Aviation'
Continues
ANN has been slogging through
hundreds of pages of budget documents published in the last few
days by OMB and the DoT in order to get a grasp on what will happen
to this industry, as far as interaction and funding/taxation by the
government is concerned. One tiny little paragraph, which one can
only assume was meant to be buried (in that is it signals not only
a massive policy shift, but one that the DoT KNEW would draw
extensive attention) is creating serious heartburn in that it seems
to have been dumped in, incognito, in order to try and sneak
one past us for as long as they could get away with it.
As usual, the inhabitants of the various Washington Puzzle
Palaces actually undervalued both our interest and ability to read.
Inserted within the Budget Estimates is the following language...
which literally produced the obligatory chill-down-spine reflex
that comes all too often these day to those trying to figure out
what the government is going to do next is the following language
on page 11 of the 857 page adobe acrobat file: "Starting in 2011,
the budget assumes a scenario where most of the air traffic control
system would be paid for by direct charges levied on users of the
system. The FAA’s current excise tax system, which generated
$12.4 billion in 2008, is largely based on taxes that depend upon
the price of customers’ airline tickets, not FAA’s cost
for moving flights through the system. The Administration believes
that the FAA should move towards a model where FAA funding is
related to its costs, the financing burden is distributed more
equitably, and funds are used to directly pay for services the
users need. The Administration recognizes that there are multiple
ways to achieve these objectives. Accordingly, the Administration
will work with stakeholders and Congress to enact legislation that
moves toward such a system. The potential scenario displayed in the
Budget estimates FAA would collect $9.6 billion for air traffic
services in the first year and credits those collections as
discretionary user charges."
In the much shorter summary sheet
provided to explain the FAA budget, the following language is
evident as well: "FAA Reauthorization: The Vision 100 —
Century of Aviation Reauthorization Act, as extended by Congress,
expires on September 30, 2009. Starting in 2011, the Budget assumes
that the air traffic control system will be funded with direct
charges levied on users of the system. The FAA’s current
excise tax system is largely based on taxes that depend on the
price of customers’ airline tickets, not FAA’s cost for
moving flights through the system. The Administration believes that
the FAA should move toward a model whereby FAA’s funding is
related to its costs, the financing burden is distributed more
equitably, and funds are used to pay directly for services the
users need. The Administration recognizes that there are
alternative ways to achieve these objectives. Accordingly, the
Administration will work with stakeholders and the Congress to
enact legislation that moves toward such a system."
ANN is still analyzing the language in nearly 900 pages of
documentation and dozens more being supplied from sources
throughout the industry -- one thing is clear -- the
Administration's ability and willingness to harm this industry,
intentionally or not, continues unabated and the potential for even
more extensive damage seems not only possible, but probable, if
these type of efforts continue. We'll keep you informed...
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