Airlines Have A New Target This Time Around

The powerhouses of general aviation presented an equally powerful, united front at the General Session that kicked off the AOPA Expo in Palm Springs, CA. Thursday's event opened with AOPA President Phil Boyer introducing "our biggest issue in the looming months and year ahead" --- user fees.

Boyer opened the event by pointing out the current $14.2 billion FAA budget consists of $3.5B in airport improvement, $3.5B in airport improvement, $2.5B in ATC enhancements and $8.2B for FAA Operations and $138M for R & D. The budget is funded with 23% from general taxes and 77% from aviation taxes (GA fuel taxes, and airline ticket taxes and segment fees.)

This current budget will take the FAA through October 2007 -- but the war has already begun to stop the next generation of user fees being proposed by the airlines who are attempting to shift $2 billion in fees to general aviation yet still controlling the ATC system.

Boyer's first guest, National Business Aviation Association president and CEO Ed Bolen, explained the last budget fight was 10 years ago, in 1997. At that time, low cost airlines like Southwest were the target of the "Legacy" carriers, such as American and Northwest. As those two sides squared off, general aviation remained under the radar.

That war ended in a draw. The ticket tax decreased from 10% to 7.5% and the departure tax was added. Now that airline fares have basically evened out, they are "closing ranks to fight general aviation," says Bolen. "We intend to fight this to win."

Bolen also pointed out that one only needs to look at the impact user fees have had on business aviation clients who fly overseas -- where user fees run rampant, and roughshod, over GA -- to see the path that has been followed... and realize that one day a simple joyride around the patch may become a paperwork-intense, fee-ridden nightmare.

Tom Poberezny, President of the Experimental Aircraft Association, showed solidarity with his business-aviation counterpart. "The airlines have targeted general aviation," Poberezny said. "They have put a target on the back of business airplanes."

Poberezny (below) added that effort won't stop with business aviation... which is why AOPA, NBAA, EAA and GAMA must remain united to oppose the airlines plan.

Pete Bunce, President and CEO of the General Aviation Manufacturers Association (GAMA) agreed... calling user fees "insidious."

He states the airlines are talking about the "onslaught" and the "darkening of the skies with VLJs" trying to get the FAA to buy into it. Bunce pointed out the FAA Administrator Blakey announced at Oshkosh that VLJs will not be a major impediment to the system.

Bunce also reminded the audience about the 1.3 million jobs -- many high paying ones -- in aviation that benefit the economy... making the 23% aviation receives from general taxes seem like a bargain.

Last to speak at the event was the Honorable Sam Graves, US Representative from Missouri and also a pilot, who serves on the transportation committee. Graves is on board to fight against user fees, however his revelation about the knowledge level on Capitol Hill of the user fees was less than hopeful.

"There is not a whole lot of knowledge in terms of the members themselves," Graves said, stressing the need for pilots to let their representatives and senators know how they feel.

Graves also pointed out "piling on a bunch of user fees can have a devastating effect" on general aviation.

It's obvious, then, that the GA community is staunchly opposed to user fees... but what about the other side of this argument? The FAA says it needs money for the much-touted "Next Generation" ATC system -- that should be a priority, right?

Bolen responds, don't believe the hype.

"I think there's a lot of confusion about what this next generation (of ATC) is," the NBAA president says. "Nobody knows what it is, it hasn't been defined."

Defined or not, some elements of the transformation have already begun. An example is the reduction in vertical separation between FL290 and FL410 (RVSM), which increases capacity. Another innovative system hyped by the FAA -- Automatic Dependent Surveillance-Broadcasting (ADS-B), is undergoing limited testing in several areas of the US.

How those pieces will come to together, however, is anybody's guess.

"There aren't a lot of answers," said Bolen (above). "We have a system that's worked for 35 years. We should not throw out that system that's worked for a radical new system of user fees based on a hypothetical modernization plan."

After all, a bank won't lend you money without a concrete plan... so should the FAA be making plans for fees without a plan in place as well?

Says Graves "there is no proposal yet on what we're going to do with the next generation system. They (the FAA) just want the money now, then they want to figure out what it is they're going to buy."

Additionally, Graves (above) worries about the accountability of the money, since it is not a "tax" it would not fall under government control. Other worries include the cost to put the bureaucracy in place.

Likely the fund would be cared for by a committee staffed by mostly the airlines. Can you say fox guarding the hen house?

Poberezny concurs with his peers that "the current system ain't broke. We are united in this fight."

All speakers at the assembly agreed on one point: any user fee imposed on corporate aviation is likely to become a "gateway" fee... and it will only be a matter of time until all of general aviation will be encompassed.

FMI: www.aopa.org, www.nbaa.org, www.gama.aero, www.eaa.org, www.house.gov/graves/