Says User Fees Accurately Link Services And Costs

The Air Transport Association of America (ATA), the trade organization of the leading US airlines, issued a statement Monday in response to the Bush administration's FY 2008 budget proposal.

In it, ATA says it's pleased the administration's budget proposal recognizes "sound economics and basic fairness" require a link between ATC services and what users pay for those services. ATA President and CEO James C. May (below) claimed the proposal would establish a cost-based funding method for the US aviation system. ATA views the development as "a positive step toward much-needed system modernization."

As ANN reported, the Bush administration submitted its budget proposal yesterday which included language requesting aviation user fees. While specifics of the proposal have yet to be released, there is wide-spread believe among the various groups representing general aviation the proposal also includes a request to increase the tax on aviation fuel -- the traditional and current method of tying fees to use. Most GA groups argue that keeping the current system of taxes -- at their current rates -- would more than adequately fund the FAA, and avoid the inevitable large bureaucracy necessary to collect user fees.

The ATA has argued the current fuel tax isn't fair and that airlines pay a larger portion of the revenues currently collected by the FAA. May said, "The administration's proposal also seems to recognize that in the ATC system, a blip is a blip. Whether there are three or 300 passengers on an aircraft, to an air traffic controller, a blip is a blip on the radar screen. At the same time, it would accommodate the desires of the business aviation community to maintain a simple, per-gallon fuel tax, but one redesigned to fairly reflect costs."

May concluded by saying ATA is pleased the administration isn't satisfied with the status quo, adding, "A system where users pay for the services they consume is essential to funding the ATC improvements the nation so desperately needs. It will allow us to make rapid progress to the digital, satellite and GPS technologies required to handle 21st century demand."

ATA claims its members transport over 90 percent of all US airline passenger and cargo traffic.

FMI: www.airlines.org