Speech Before ACI-NA Seems To Point In That Direction
Editor's Note:
Below is an unedited excerpt taken from a speech given Tuesday by
FAA Administrator Marion Blakey at the Airports Council
International - North America conference in Reno, NV.
Despite an apparent victory by general aviation interests
this year over the tumultuous issue of user fees to support FAA
funding -- and admonishments from Florida Congressman
John L. Mica and North Carolina Representative Robin Hayes that
Blakey has since "gotten the message" that
user fees would be highly detrimental to GA -- Blakey's words
Tuesday sure sound (at least to us) as though she is still looking
towards a fee-based funding structure, where general aviation
pilots would be asked to pay more for services that are now funded,
and fairly so, through taxes on avgas and Jet-A.
Excerpt From FAA Administrator Marion Blakey's Speech
Bottom line: We, the FAA, need to account for the whole
financial picture for airports as we develop our proposals for AIP
reauthorization — and we will. We also have heard your desire
for more flexibility in how you spend federal funds. We’re
looking carefully at how to accomplish that goal. Next year’s
reauthorization comes at a critical time, and I firmly believe that
we need to be bold in order to meet the needs of the Next
Generation Air Transportation System.
Let me now offer a few observations about the state of the FAA,
and how it affects you. But I need to spend a moment to tell you
how we got where we are.
The first order of the day was direction from Congress, the
taxpayer — you — to the FAA and it is some pretty clear
language: start to operate more like a bottom-line business. We
contracted out our automated flight service stations, saving $2.1
billion over 13 years. We've consolidated administrative, staff and
support functions to save another $400 million. We've tied pay to
performance wherever possible, including a new controller contract
that saves nearly $2 billion over five years while giving us new
managerial flexibility to safely manage the system.
We also created a reliable cost-accounting system and made other
reform that led GAO to take us off its “High Risk” list
for financial management. In many ways, we're mirroring the same
type of fiscal restraint that you've been showing. And that's the
way it should be.
I'm proud of the fact that our major capital programs are nearly
meeting the stringent goals we set out in the Flight Plan. We
wanted them to come within ten percent of being under budget and on
time. And wouldn't you know, we're hitting 100 percent for the
former and 97 percent for the latter.
Responsible government begins with fiscal responsibility, which
is what we're doing more and more and more.
And with good reason. As
you know, the excise taxes that fuel our operating budget are set
to expire in the Fall of ‘07. Right now, the formula for the
taxes is based on the price of a ticket. As prices rise and fall,
so does our income. That makes it difficult to plan for long-term
capital investments. I certainly don't need to talk to this group
about the challenges that creates. So with the emergence of
low-cost carriers and the change in the fleet mix, our income dips,
but our workload goes up. More passengers, more smaller planes,
lower ticket prices, lower income. What's wrong with this picture?
And what's worst of all is that we know that the FAA is trying to
handle all of this with a revenue stream that's in no way related
to the actual cost of providing the service. I've said in the past
that our revenues might as well be tied to the price of a gallon of
milk. That one occasionally draws a few chuckles, but I'm not
kidding, and the joke is on all of us.
Bottom line: we need a stable revenue stream. The changing face
of aviation brings with it the need to modernize and we can't do
that without fundamental reforms of the current financing system.
If traffic grows as expected, we project that by 2014 delays in the
U.S. will increase 62 percent over 2004 levels. In fact, if the
weather is the same in 2014 as it was in 2004, 29 days —
almost a month — in 2014 will experience more delay than on
the worst day in 2004. These projected delays will cost the
airlines at least $2 billion in extra costs and will seriously
erode profits needed for future fleet and infrastructure
expansions.
The situation is even more perplexing for the passenger. Because
of missed connections, passenger delays could conceivably double by
2014. That's just not acceptable.
So we're not going to let that happen. We're addressing the need
to modernize with NextGen, the drive to create the next generation
air transportation system. I don't have to tell you about the
ramifications for the failure to plan now for what's coming down
the road. A couple of months ago, I picked up the Wall Street
Journal and saw four different ads for VLJs in the first nine pages
of section one. The need to modernize is upon us, so we better get
moving.
I think we all have to be very clear. NextGen isn't only an air
traffic transformation. It's the integration of air traffic with
airport requirement, especially in terms of infrastructure and
security. It's curb to curb. That's why we have an integrated
product team for airports. And that's why we have an integrated
product team for security. All working together under the umbrella
of our Joint Program Development Office, which is responsible for
designing and launching the next generation system.
In closing, let me point out that as part of our reauthorization
exercise, we are looking at whether airports and state aviation
officials can play an expanded role in moving to the next
generation system. And we are looking at how AIP and PFC
investments can be used to assist you to prepare in being part of
this important transition.
We've asked for your input in the past and we'll continue to do
so. I've said on many, many occasions that aviation is a lifeline.
The truth of the matter is that airports are what make that
lifeline possible. You've done an outstanding job thus far, and as
we move forward to modernize, as we lay the groundwork for the
future, we're creating a foundation for success. I, for one, am
glad to work shoulder to shoulder with you to make it happen. Thank
you.