RACCA Against Reauthorization Provisions

Citing user-fee changes as one of its greatest concerns, the Regional Air Cargo Carrier’s Association (RACCA) added its voice to the many users who object to the recently proposed reauthorization legislation. Related Story  RACCA President Stan Bernstein told Representative James Oberstar, chair of the House Transportation and Infrastructure Committee, RACCA’s 50 members who fly over 1,000 aircraft would face tax increases that would threaten service to small communities that, in the last decade, have seen the wholesale abandonment of air service because of regulatory and market changes. Related Story
It especially objected to the cost-of-living adjustment that would kick in at the beginning of Fiscal 2010, saying, “these provisions seem to be nothing more than a built-in cost escalator, beneficial to the FAA and its contractors but extremely detrimental to smaller commercial operators like those among RACCA's membership, who operate in an extremely competitive environment – one in which such cost escalations often are not acceptable to customers and which can quickly render operators’ services unprofitable.”