User Fee Would Put Regionals $100M in Red

The new $25 per flight segment user fee would put regional carriers $100 million in the red, according to Regional Airline Association (RAA) Vice President-Legislative Affairs Faye Malarkey at the RAA conference in Memphis this week. “We know the Senate understands our problem and we are working to...

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The new $25 per flight segment user fee would put regional carriers $100 million in the red, according to Regional Airline Association (RAA) Vice President-Legislative Affairs Faye Malarkey at the RAA conference in Memphis this week. “We know the Senate understands our problem and we are working to ensure adjustments are made in the reauthorization bill,” she said. “The point at which our carriers could recoup that cost through fare increases comes long after the normal stage length of a regional airline.” Her other goals for the reauthorization legislation is to put teeth into Section 402 which allows for coverage of cost increases such as fuel. “It is problematic for our airlines not to have a real-time rate making adjustment mechanism,” especially if the contracts are to be extended beyond the current two years as outlined in the recently passed Senate bill.
Airlines attending the meeting had a very “robust” discussion with FAA Administrator Marion Blakey who briefed them on the Next Generation ATC system. User fees are top of the agenda and a meeting that had been scheduled for one hour eclipsed all other topics and stretched out over three and a half hours. While strenuously objecting to the proposed $25 user fee, the association indicated that it agreed with the Air Transport Association that other users should pay a fuller share of the system. RAA Chair Paul Foley not only mentioned general aviation but pointed to business and corporate flying as well as fractional ownership and even Very Light Jets. Over 1,500 attendees are in Memphis attending the meeting, setting a record with the number of airline attendees.