GA In The Crosshairs: The Math Behind The Mayhem | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Recent Daily Episodes

Episode Date

Airborne Unlimited-
Monday

Airborne-Unmanned w/AUVSI-
Tuesday

Airborne Unlimited-
Wednesday

AMA Drone Report-
Thursday

Airborne Unlimited-
Friday

Airborne On ANN

Airborne 04.23.18

Airborne-UnManned 04.24.18

Airborne 04.18.18

AMA Drone Report 04.19.18

Airborne 04.20.18

Airborne-YouTube

Airborne 04.23.18

Airborne-UnManned 04.24.18

Airborne 04.18.18

AMA Drone Report 04.19.18

Airborne 04.20.18

Wed, Feb 14, 2007

GA In The Crosshairs: The Math Behind The Mayhem

Agency Worked With National Accounting Firm To Determine Allocations

How did the Federal Aviation Administration arrive at its decision to increase fees operators of smaller aircraft would pay under its proposed new funding scheme? The FAA states it worked with accounting firm PriceWaterhouseCoopers to designed what the agency calls "a simple, transparent, thorough, and repeatable cost allocation methodology."

The FAA used FY 2005 Cost Accounting System data -- which the agency says is the most detailed and comprehensive cost data available as the proposal was being developed -- to distinguish between two types of users:

  • Turbine-powered aircraft (jets and turboprops) users drive most system costs because they fly in all weather, at all times of the day, tend to be time-sensitive, generally compete for the same air traffic control resources, and require complex air traffic equipment and procedures.
  • Piston aircraft and helicopter users, who typically fly lower and slower than turbine pilots. These aircraft typically fly less complex equipment, tend to be less time sensitive, frequently fly under visual flight rules, and require different types of air traffic control resources.

The FAA allocated the costs of more than 600 Cost Accounting System projects between these two user types and determined that, in most cases, piston users were responsible for only a share of incremental costs. The total FY 2006 air traffic costs were allocated as follows:

  • 87% to turbine users,
  • 7% to piston users, and
  • 6% to flight service stations (expected to decline in future years).

Within each group, the FAA divided costs among commercial, general aviation and public users based on their share of activity. In the terminal environment, the allocation looks at costs and activity within groups of similarly-sized airports. As a result, users of less costly facilities do not bear the costs of more expensive facilities.

This table summarizes the FY 2005 cost allocation results, according to the FAA:

Flight Service Station costs are not allocated among users, because costs are expected to decline substantially in future years (one assumes, due to increased privitization of the service -- Ed.) and the cost recovery proposal funds these costs from the General Fund.

FMI: www.faa.gov

Advertisement

More News

UPDATE: The Dirtiest of Washington Politics? -- ATC Privatization By Deception?

Stunning, Deceptive, Dirty Politics... Shuster Is At It Again, But This Time We Need To React FAST! ANN RealTime News Update, 04.24.18, 2302 ET: Well... initial info suggests that >[...]

AMA Drone Report 04.19.18: AMA Leadership, FAA Reauthorization, Coachella

Also: New French Regs, Drone Boot Camp, Public Safety Drone Standards, DroneShield Protects NASCAR It’s a little bit sad and yet a bit cool to see AMA make an exciting change>[...]

Airborne/Barnstorming 04.23.18: We Can Do So Much Better...

I'll Admit It... We're A Mite Frustrated, But We're ALSO Not Quitting... Ever Comments/Analysis/News/Video by ANN CEO/Editor-In-Chief, Jim Campbell We've accomplished so much over >[...]

Airborne 04.23.18: Hemisphere Suspended, Thunderbirds Fly, Apple v Drones

Also: New NASA Administrator, AD For CFM56-7B, Engine Display Upgrade On C-441, First BBJ MAX Textron Aviation has suspended work on the Citation Hemisphere large business jet, cit>[...]

ANNouncement: Now Accepting Applications For Oshkosh 2018 Stringers!!!

An Amazing Experience Awaits The Chosen Few... E-I-C Note: There's very little we can say yet, but there is a reason why this may be THE year to throw in with ANN to cover the extr>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2018 Web Development & Design by Pauli Systems, LC