Large Carriers Finalize Stance On Airport and Airway Trust Fund Reauthorization

The 19 member carriers of the Air Transport Association (ATA) have agreed on a "unified vision" for funding a next-generation air traffic control system as part of the Federal Aviation Administration's (FAA) Airport and Airway Trust Fund (AATF) reauthorization. Regional carriers, however, have not...

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The 19 member carriers of the Air Transport Association (ATA) have agreed on a "unified vision" for funding a next-generation air traffic control system as part of the Federal Aviation Administration's (FAA) Airport and Airway Trust Fund (AATF) reauthorization. Regional carriers, however, have not yet finalized their position on AATF reauthorization.

For the first time in more than a decade, ATA member airlines - including major airlines, cargo operators and low-cost carriers - collectively endorsed a Statement of Principles, calling for a new cost-based approach to operate, maintain and modernize the National Airspace System (NAS). Under this effort, ATA has launched a national campaign, "Smart Skies: A blueprint for the future," aimed at educating the public and lawmakers on the need to modernize the NAS and to strive toward implementing a fair funding mechanism.

"We are at a historic juncture for U.S. aviation and ATA member airlines have joined together in a call for change," said ATA President and CEO James May. "Our country's economy depends on aviation and, without some change in the status quo, the system will not be equipped to meet future demand."

Deborah McElroy, president of the Regional Airline Association (RAA), said RAA has not finalized a position on reauthorization of the Airport and Airway Trust Fund.

"Funding to enhance and modernize the national airspace system is a critical issue affecting regional carriers, our employees and the 492 communities that depend exclusively on regional airlines for their access to air transportation," she said. "We look forward to working with FAA, Congress and other aviation organizations to ensure that any funding proposal does not disproportionately increase regional airline costs or disadvantage small and medium community air service."

The ATA released a report, "Commercial Aviation and the American Economy," on March 8 summarizing the estimated impact of commercial aviation on the U.S. economy in 2004, at the state and congressional district levels.

"The commercial aviation sector has a significant impact on the U.S. economy, based on air transportation and airport services, manufacturing, and travel and tourism expenditures from air passengers," said Brian Campbell, chairman of the Campbell-Hill Aviation Group. "In 2004 alone, commercial aviation drove $1.2 trillion in economic activity, $380 billion in personal earnings and 11.4 million jobs."

May noted that the AATF reauthorization process provides a one-time opportunity to create a structure that ties funding directly to use of the system. "Trust Fund revenues are unpredictable because they depend upon fluctuating ticket prices and aircraft size," he said. "How can we determine how best to spend federal funds when there's no way of knowing how much revenue there will be? As long as there is no direct link between funding and costs, much needed modernization cannot occur."

>>Contacts: David Castelveter, ATA, (202) 626-4033; Deborah McElroy, RAA, (202) 367-1170.<<