A Bill to Pay Tomorrow's Bills

Sent to Congress by the Bush Administration this week is a Bill that will be all things to all aviators - except that because of it, some will pay a lot more and some a little less. The Next Generation Air Transportation System Financing Reform Act of 2007 is futuristic legislation designed along "user pays" lines. Because of the need to fund the NextGen Air Traffic Control system, the FAA has opted for a more reliable and stable format for its revenue collection. Airlines are to be less heavily levied and Corporate aviation slugged for much more of what's considered to be their "fare" share. Secretary of Transportation Mary Peters supported the new direction in aviation taxing. She waxed eloquent about the efficiencies promised by the new satellite-based ATC system that is promised to eliminate delays and allow burgeoning airline traffic growth. More specifically, the bill will eliminate the domestic passenger ticket tax and reduce the international arrival and departure tax by 50 percent. According to her Department's analysis, the risk of not acting now "is to risk gridlock in our skies and on our taxiways.”
    The Legislation also calls for the establishment of a new advisory board that will give members of the aviation community a stronger say in just how funds will be invested in aviation. The caveat there is that Congress will be the final arbiter and most of the public oversight will be the purview of lobby groups. The more things change the more they stay the same.
    Reform of the Passenger facility Charge Program will enable large and medium sized airports to raise funding for vital infrastructure projects. The Bill also promises to rejuvenate and reform the Airport Improvement Program by better targeting Federal Funds. On the technical side of aviation, the concerns over engine noise and emissions will be addressed by funding research programs for new airframe and engine technologies.
     FAA's current funding mandate expires on 30 September. FAA Administrator Blakey promised to work closely with Congress to facilitate swift action on the new legislation that will supplant the existing taxes that support the Airport and Airway Trust Fund.