Commentary: Premature to Change Funding Mechanism

While the air traffic control system may have long ago broken down, it is premature to change the funding mechanism, especially when it results in fewer funds. More troubling, perhaps, is the industry and government attitude that users can be their personal ATM machines. While airlines decry the fact they...

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While the air traffic control system may have long ago broken down, it is premature to change the funding mechanism, especially when it results in fewer funds. More troubling, perhaps, is the industry and government attitude that users can be their personal ATM machines. While airlines decry the fact they pay for the majority of the system, that is only fair since the system is built and run largely on their behalf. Thus they are already paying their fair share as are those who do not get the priority use of the airspace the way airlines do.
Regardless of 40 years of failed modernization to cope with increasing traffic, those who watch over our tax dollars, including the General Accountability Office, have testified that the current funding mechanism will pay for the Next Generation ATC system.
I find it hard to accept that we should change the system, especially as it seems to reward the FAA for failing in so many areas and airlines for over scheduling. It has yet to outline exactly what it costs to serve various users. It has yet to do what the airlines have done since 911, streamline operations into a more cost-effective oversight agency.
If you polled people about what it is they really want from their government, it would be to protect them – from bad maintenance, not enough controllers, terrorists, bad drugs, bad business practices and bad food – yet our government explains away its shortcomings by saying it cannot afford to pay for all these things, unless, of course, we devise a user fee. It begs the question of what our tax dollars are actually paying for.
There is certainly plenty of ammunition supporting massive capital needs in the coming decades. Airports Council International – North America began its campaign to lift the cap on passenger facility charges citing a need for $87.4 billion over the next four years on new airport infrastructure. The DOT released a new report saying by 2025, 15 metropolitan areas will achieve gridlock, unless they make improvements.
One has only to look at the last decade to see the impact of increased costs on regional airline services. The commuter safety rule increased costs forcing many communities off the map. Increased fees resulted in the loss of air service for still more communities. But, what is bad news for rural passengers, is good news for the emerging air taxi and charter operations using VLJs, which promise to reduce the cost of charter services to levels paid for business fares, returning these forgotten communities to the national air transportation system.
While the major carriers may want a change in the funding mechanism, it is premature. They may be right that their passengers pay for the lion’s share of the system, but the system places top priority on the airlines, not airlines in general, mind you, but large aircraft operators in particular. So, just as the airlines have separated passengers into a caste system, so, too, has ATC created a similar caste system based on aircraft size. We all know the system is really a numbers game – moving the maximum number of passengers in a minimum amount of time – leaving regionals and all other users playing distant seconds and thirds to the needs of the large-aircraft operators. Indeed, that is unlikely to change.
The airlines charge that it is unfair for their passenger to foot the bill that includes corporate and other users. Unfair? Other users are not getting off scott free. They pay for the system through fuel taxes, and one association reported efforts to more than double them while eliminating the commercial fuel tax. In addition, they are wrongly blamed for congestion for the privilege.
But consider this: It is unfair to rank passengers into caste system. It in unfair to nickel and dime passengers by charging them an overblown fee for everything under the sun including booking a seat. It is unfair for tickets to go up and service to go down. It is unfair that one is threatened with being a security risk for merely complaining or asking a question. It is unfair for passengers to be held captive on delayed flights with little explanation. It is unfair for regionals to be blamed for consumer problems when it is the majors that are controlling the flight. It is unfair that even though passengers are paying taxes for government services, they have to pay all over again through fees, surcharges and ticket taxes. And it is unfair for airlines to squeeze employees yet reward execs with obscene payouts.
This is not unique to aviation. It is unfair we get nickel and dimed by banks and credit card companies who charge nonsense fees that only serve to feed the bottom line. It is unfair that, while oil companies are raking in record profits, the price of a tank of gas still escalates. It is unfair that any meager raise is eaten up by higher health insurance costs that still leave consumers in massive debt. Call me Pollyanna, but most importantly, it is unfair that they can all get away with this because there is no one in Washington truly representing the people.
So, if some big lobby wants to complain that something is unfair, get in line. Based on the changes in airline economics and service in the last decade, the current funding system is more than fair because airline passengers are getting what they are paying for, priority in a system that has been broken for far too long.
Thankfully, the growing business aviation market, especially the new breed of VLJ air taxi/charter operations offers us hope that their passengers will actually get value for money.