ANN
Note: In opposition to the proposal set forth this morning
by the ATA, on behalf of the airline community, three prominent
GA/BizAv organizations have published proposals of their
own.
No matter which way one feels on the issue, the matter seems
destined to divide an already embattled industry down the
middle... between the airlines' cry for GA to pay more for the
services they contend it owes to the system, and a GA world
that argues that the system was designed for the airlines and
that much of the costs needed to support it have nothing to do with
what they need... or use.
The airlines call their proposal a 'modernization blueprint'
while various GA spokespersons labeled the ATA proposal as
something of a power and money grab. No matter which way you look
at it, this industry, used to fighting all manner of outside
thereats and problems now appears to be destined to fight amongst
itself. -- Jim Campbell, Aero-News Network,
Editor-In-Chief
NBAA/NATA/GAMA Joint Statement
Three leading
associations representing the general aviation community today
unveiled unified principles for the FAA Airport and Airway Trust
Fund (AATF) reauthorization, including the retention of
Congressional oversight, development of a modernization and
investment plan, and rejection of a user fee funding scheme in lieu
of the current fuel tax system.
The announcement by the presidents of the National Business
Aviation Association (NBAA), the General Aviation Manufacturers
Association (GAMA), and the National Air Transportation Association
(NATA), comes as the largest airlines' trade association formally
launched a massive campaign to persuade Congress to follow its
formula for Federal Aviation Administration (FAA) funding.
"We in general aviation have five guiding principles for FAA
reauthorization that we would like Congress to consider," said Ed
Bolen, president and CEO of the NBAA. Along with Peter Bunce,
president and CEO of GAMA, and James Coyne, president of NATA,
Bolen outlined the following principles:
1. Modernize with
satellite technology. The groups support transitioning to a future
air transportation system that is more satellite-based than today's
ground-based navigation system, even though there may be some
equipage costs that general aviation users will bear.
2. Invest in the National Air Transportation System. The
economic benefits of a strong air transportation system are clear,
as evidenced by the many communities across the country that
consider the local airport their single greatest economic
development tool. A robust contribution of 25 percent to 30 percent
to the FAA from the "General Fund" is needed to support development
of the Next Generation Air Transportation System.
3. Keep general
aviation fuel taxes. The general aviation community has always
financially contributed to the national air transportation system
through the payment of fuel taxes. These taxes are paid "at the
pump," so there are no administrative costs associated with
compliance. Fuel taxes should remain the mechanism through which
general aviation pays for the costs it imposes on the system.
4. Reject user fees for general aviation. User fees are
costly and require a large bureaucracy to administer. They are
confusing and time-consuming to process, ripe for dispute and
economically detrimental to the general aviation community.
5. Ensure continuing Congressional authority. Congress is
specifically designated as the voice of the American people. For
that reason, Congress should continue to have authority over FAA
funding and other aviation issues.
"GAMA member companies strongly believe that any discussion of
trust fund revenues and FAA financing must be directly tied to the
development of a long-term modernization plan of the air traffic
control system,"
said Bunce.
Referring to today's proposals by the Air Transport Association
(ATA), Bunce added, "We are concerned that the commercial airlines
are proposing an approach that would simply allow them to pay less
for use of the system, while at the same time, give them control
over how the system is managed. It is our hope that industry
and government can agree on a plan that will strengthen the world's
safest, strongest, and most efficient aviation system."
NATA's Coyne, who once taught at the Wharton School of the
University of Pennsylvania said: "The airlines are proposing a user
fee concept based on 'activity levels', and that goes against every
standard of economics practice. It would be laughed out of any MBA
classroom. Everyone in the industry knows that the airlines are the
cost driver for the National Air Transportation System."