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Fri, Mar 30, 2007

AEA 2007: Admin. Blakey Says Funding Debate 'Is About Paying Your Fair Share'

Reauthorization Battle Is 'Degrading Into Stick Fight Over User Fees'

Editor's Note: Below, we pick up on comments made by FAA Administrator Marion Blakey during her speech Thursday before attendees of the Aircraft Electronics Association's 2007 Convention and Trade Show, regarding the omnipresent fight over the agency's proposed airline-supported reauthorization plan.

While the Administrator's tone hasn't changed from comments made earlier this week -- in which she accused opponents of the FAA plan of devolving into "rhetoric" and "partisan politics" -- Ms. Blakey acknowledges her agency's stance is an unpopular one at AEA, where a Friday forum is devoted to examining the negative impact user fees would have on general and business aviation.

The Administrator repeats her admonishment that without approval of the FAA's plan -- under which she asserts "the majority of GA will never pay a user fee" -- the agency's "NextGen" air traffic control system will not come to pass... and that will lead to gridlock scenario where "a plane carrying three hundred people is going to trump one carrying three."

The full text of the Administrator's speech is available on the FAA website. The portion of the speech presented below is unedited.

... You know, there are some hard facts that we've just got to face. One is that we'll vault past a billion passengers by 2015. The second is that the system as we know it today just can't stand up to that load. Those of us who stood on line or in the queue on the runway this year already know that. 2006 was the worst on record for delays. If we don't move toward a next generation air transportation system, 2006 will look like the good old days.

Fortunately, we have a NextGen plan in place combining the firepower of five separate cabinet-level agencies. It will take us to 2025 and beyond with a heavy focus on delivering in the near term, too. When the traffic doubles, NextGen will have a string of seamless technologies in place that can accommodate it. Whether we're looking at A-380s or new GA aircraft, microjets, UAVs or the low-cost and regional jets that are driving the bus today, NextGen can handle it.

But there's one thing holding us back, and that's the funding stream the FAA has in place today. Now bear with me here. I know I have an uphill climb, but with an entire panel on Friday devoted to the "negative effects" of our proposal and the status quo being touted as the right method for the future, I do want to talk with you for a few minutes about it.

I'm going to start with a couple of questions for you. How many of you have long-range business plans in place that can only be funded a year at a time? How many of you tie those business plans to the price of an airline ticket?

No one does unless you're an airline. A funding system put in place decades ago, a funding system that didn't contemplate fare wars or Orbitz or Southwest. No one did.

But with the expiration of the FAA's financing system at the end of September, we have a chance to fix that. It's an historic opportunity. But unfortunately it's in danger of degrading into a stick fight over user fees. General Aviation's afraid of user fees. That's why GA is paying through a fuel tax. Under our proposal, the majority of GA will never pay a user fee. What they're missing is the $4.3 billion in capital funding those user fees would finance over the next five years. We've put our money where our mouth is, increasing capital spending by 40 percent. We're putting big investments into ADS-B and other core NextGen technologies.

Some of the rhetoric out there is just flat out wrong. The criticisms that we can't be trusted with this plan just don't hold water. One hundred percent of our major capital projects are on schedule and on budget. I'll stack that up against any federal agency anytime.

When you hear horror stories about the FAA being "anti-GA," I want you to take a good look at the numbers. In our proposal, Joe pilot in a Cessna 172 will experience an operating cost increase of about four dollars per hour. In other words, the owner of a very expensive airplane is engaged in a heated dispute that hinges on the cost of a Starbucks latte. It's important to note here that if the fuel tax is increased, it still represents less than five percent of the overall cost to fly your GA aircraft.

This is about paying your fair share. While we're having a debate over who's going to pick up the tab, the passenger in the middle seat is footing the lion's share of the bill for operation of the system. The commercial traveler is paying 95 percent of the cost but imposing only 73 percent of the cost. A seat on a commercial jetliner is the most heavily taxed spot in all of aviation.

If I were a GA pilot, I'd be afraid of gridlock. When gridlock comes, we'll have to slow things down because of safety. That could spell an end to the first-come, first-served system we know today. In a gridlock scenario, a plane carrying three hundred people is going to trump one carrying three.

There are a few other myths out there that warrant attention. The rumor and innuendo you're hearing about controller salaries is particularly vexing. It would lead you to believe that we're trying to undermine our own workforce. If we really wanted to undermine our controllers, as some allege, we wouldn't be paying them $50,000 after a year on the job or $94,000 after five years. That's pretty good money by anyone's standard. Veteran controllers, mind you, have been held virtually financially unharmed.

There's another contention floating around, a notion that somehow our proposal eliminates congressional oversight of the FAA. That's just not true. Our bill does nothing of the sort. The Congressional oversight that's in place today stays in place. I've got to tell you, a fee-based system is much more transparent and accountable, and therefore easier to review.

Then there's the matter of the $600 million less that our critics claim is raised under our financing system versus the current one. No. Ours is a cost-based system, meaning we raise exactly what we need.

Another common criticism we hear is that there is no specific map for NextGen. Let me be clear on this. There is a specific road map for NextGen. We're moving to a satellite based system that's going to provide terrific benefits to pilots all the way across the board and to the flying public. We have a detailed concept of operations, and we know exactly how we're going to spend the money over the next give years. We know the cost of NextGen.

This is particularly troubling because a next generation system is not a novel idea. If you head overseas, you'll find that the rest of the world is moving forward on plans of their own. They're not mired in an argument of how to pay for it. They don't have time for the world leader in aviation to get all the ducks in a row.

Let's keep our eye on the big picture here. The people who are rejecting this proposal aren't offering one of their own. They're telling us to stick with the status quo. I'm drawing a line in the sand, and I'm telling you that the status quo is a recipe for gridlock. What we need here is constructive discussion, resolution. We — that's all of us; that's each and every one of us — need to get it done. Time is not on our side.

FMI: www.faa.gov

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