All segments of the aviation community are rushing to quantify their worth to the U.S. economy. While everyone agrees that aviation exerts a significant impact on the economy and, given that, the general fund should help pay for the FAA, the battle is joined between the airlines and general aviation over the user fee concept favored by the airlines, versus a continuation of the fuel tax favored by GA.

While airline groups such as the Air Transport Association (ATA) back the concept of user fees, general aviation organizations oppose the idea, arguing that taxes on aviation fuel should continue to make up GA's contribution to national airspace funding, especially since most of the money spent is dedicated to the airline side of the business. "GA constitutes only six percent of the total operations at the nations largest 35 airports," said GAMA's Katie Pribyl. "If you take the top 20 commercial airports and the top 20 GA airports there is no overlap, not one. GA does not use the same airports, we avoid them. Most of the money goes toward the airports used by the airlines. They are the ones driving this. Why should we pay for a system that was built for the airlines?"

Until the FAA develops a new modernization plan which sets out costs and specific funding mechanisms, something that all agree is necessary, it is difficult, if not impossible to determine who should pay what and how it is paid.

The latest economic impact study indicates that general aviation contributes more than $150 billion to the U.S. economy. Jointly commissioned by the General Aviation Manufacturers Association (GAMA) and the National Association of State Aviation Officials (NASAO), the study said the GA contribution was significantly higher than past estimates, indicating the growing significance of general aviation as a provider of air transportation. The study concluded that GA directly or indirectly employed more than 1.2 million whose collective earnings exceeded $53 million. Pribyl indicated that the study was prompted by the fact the previous study was five years old and because they wanted more conservative assumptions than has been used in the past.

Meanwhile, the Community Air Service Coalition (CASC) is in the midst of a study of the economic impact of non-hub airports. Preliminary results show the economic impact of 72 non-hub airports is significant, generating $14.3 billion in total economic activity expressed in 2005 dollars. The study also found that these airports accounted for 181,000 jobs and $4.8 billion in earnings.

The ATA study, Smart Skies, was issued in 2004, as an update of its 2002 report. Detailing economic impacts at the congressional district level, Smart Skies showed air transportation, related manufacturing and air-based travel and tourism was collectively responsible for $1.37 trillion of national output, supporting 12.3 million U.S. employees and $418 billion in personal earnings. Commercial aviation accounts for the majority of this impact with $1.2 trillion in output, $380 billion in earnings and 11.4 million jobs.

The direct impact of commercial air transportation and related industries in 2004 was estimated at $247 billion in gross output, $72 billion in earnings and over a million jobs. Commercial air transportation was the primary source of direct impacts, with $130 billion of output, followed by aircraft and related manufacturing ($75 billion), air express couriers ($24 billion) and air transportation support goods and services ($18 billion). The indirect impact of expenditures by commercial air travelers creates an additional $191 billion of gross output, $67 billion of earnings and 3.3 million jobs.

Ironically, Department of Transportation Secretary Norman Mineta is using the economic impact of the various sectors of the transportation industry in his call for private industry to step in to develop the infrastructure needed to relieve congestion.

"There is a looming threat to our economic prosperity in the form of transportation congestion," he told NASDAQ recently when he announced the National Strategy to Reduce Congestion on America's Transportation Network, which provides government officials at all levels with a plan to expand capacity on existing airports, roads, highways, and ports. It also calls for new approaches to fund and manage future transportation systems - ergo the current battle between user fees and fuel taxes.