Hike Would Raise Add'l $1.3 Billion Annually

In its fiscal year 2007 budget proposal released Monday, the Bush administration has called on the Transportation Safety Administration to cough up an additional $1.3 billion in passenger receipts -- which means passengers may soon be paying an additional $2.50, or five dollars total, for each one-way-trip leg.

US airlines have fiercely opposed the move, with the more beleaguered domestics saying asking passengers to pay more in fees takes away from their ability to match competitors' fares while still making a profit.

Congress rejected a similar attempt to hike fees last year, according to Reuters. The current security fee pays for most of the costs associated with airport passenger and bomb screening.

Budget planners also hope to collect an additional $644 million in security fees from the airlines, including nearly $200 million in retroactive payments the TSA says are owed to the agency by several carriers.

The carriers, perhaps understandably, have resisted coughing up more to the government -- saying the feds are responsible for paying for airport security since it is in the national interest.

FMI: www.tsa.gov