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 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 goal for the reauthorization legislation is to put teeth into Section 402 which allows for coverage of cost increases such a 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.