After meetings with Senate staffers last week, Regional Aviation Partners (RAP) reported that the prospect for the $25 user fee surviving the legislative process is “slim to none” because they lack broad-based support in the Senate. The Regional Airline Association predicted user fees would put regionals $100 million in the red. Related Story
RAP brought its concerns about the impact of the user fee on small community air service to staff representing Senator Charles Grassley (D-IA), chair of the Senate Finance Committee, Senator Max Baucus (R-MT), ranking member of the Senate Finance Committee, Senator Kent Conrad (D-ND), member of the Senate Finance Committee, and Senator Bill Nelson (D-FL), member of the Senate Commerce, Science, and Transportation Committee. It reported that they are studying alternative mechanisms for funding FAA and modernization including a user fee based on stage length or for commercial flights using congested airspace. In addition, they are also looking at a per-passenger tax or keeping the current fuel tax method but changing it to provide additional revenue for modernization.
“Throughout the years, Congress and the DOT have enacted various laws and regulations without thoroughly understanding the direct and indirect impacts of the laws/regulations on small community air service,” said RAP of its mission to Capitol Hill. “These actions have contributed substantially to the decline of air service to rural communities.”
Recently, the House Transportation Appropriations Subcommittee marked up the initial version of the Fiscal Year 2008 Transportation Appropriations bill which set EAS funding at $109.4 million in funding for EAS, $600,000 short of the funds needed to cover the current program. It also put in an additional $10 million to the Small Community Air Service Development Program (SCASDP). The Appropriations Committee is expected to mark up the bill when it returns from the July 4 recess.
RAP also reported passage of the reauthorization bill before September 30 when the current legislation expires, is in jeopardy owing to concerns over changing the funding methodology and labor troubles between the FAA and controllers.