Without A Special Session, Agency Will Remain Partially Closed Until After Labor Day

The U.S. House of Representatives went into recess August 1 without waiting for the Senate to reach a conclusion on authorizing funds for the FAA, which has been partially shut down since July 22. This means that for the nearly 4,000 employees who have been furloughed without pay, the earliest they could return to work would be the first part of September. The Senate adjourned Tuesday without passing a reauthorization bill or continuing resulution.

The GOP-controlled House passes an FAA bill before the gavel fell for the summer recess, according to the Voice of America and other media sources. But it contained cuts in "essential air services" at some rural airports which Democrats want to keep in the bill. Chairman of the Senate Commerce Committee John D. Rockefeller (D-W.Va.) took to the Senate floor Monday in an attempt to pass a clean extension through the August recess. “We are inflicting real pain on very real people,” he said. “People are suffering. Small businesses are hurting.”
 
As Rockefeller moved for expedited passage of an FAA extension without the disputed provision regarding service to three rural airports, Sen. Orrin Hatch (R-Utah) objected and blocked the move. “I share ... Chairman Mica’s frustration that favors to organized labor have overshadowed the prospect for long-term FAA reauthorization,” Hatch said. “The House bill would merely undo a big partisan favor done at the behest of big labor. The House bill does not create a new hurdle to unionization. Instead, it restores the long-standing ability of airline employees to make decisions for themselves.”
 
The decision to block short-term authorization may prove to be a costly one. As the FAA is unable to collect ticket taxes, the Administration stands to lose an estimated $1.2 billion if the issue is not resolved until the beginning week of September.

The shutdown has also threatened progress on an approaching deadline for certifying airports to handle the new Boeing 747-8 freighter—the largest jumbo jet ever built by the company—as well as putting a hold on hundreds of millions of dollars in construction contracts at airports across the U.S.

FAA Administrator Randy Babbitt and DOT Secretary Ray LaHood held a telephone conference call with the media Tuesday. They reiterated that since July 22, airports around the country have lost $2.5 billion in federal dollars for important airport projects, 70,000 construction workers and workers in related fields have been laid off, and approximately 4,000 FAA employees have been on furlough.

LaHood said that safety is being protected even during the furlough. "No safety issues will be compromised,” he told reporters on a conference call. “Flying is safe. Air traffic controllers are guiding airplanes. Safety inspectors are on duty and are doing their job. No one needs to worry about safety."

But those safety inspectors are reportedly personally footing the bills for their travel and expenses. The New York Times reports that it's not clear how long they will be able to do that.

Tuesday, the Senate adjourned without taking action on the bill. If no action is taken before legislators return from vacation on September 7, nearly 75,000 people will go without work for another 5 weeks and the FAA will lose approximately $1 billion in revenues.

Most of those members likely flew home on commercial airliners.

Before Congress adjourned and left D.C., NATCA joined a growing chorus of officials and organizations admonishing lawmakers not to start their summer vacation without passing an FAA extension to put furloughed employees back to work and re-starting construction projects.

"All we are asking is for Congress not to leave Washington. Just don't leave. There's unfinished work on this FAA bill. There's too much at stake for our aviation system and the dedicated professionals who maintain and improve it," NATCA President Paul Rinaldi said in a statement. "Since this(Monday) morning, Congress squandered another $30 million in lost revenue for critical projects that affect the safety, efficiency and modernization of our aviation system, bringing the total to over $270 million lost since the start of this FAA partial shutdown 10 days ago, along with leaving 4,000 FAA employees and 70,000 construction workers laid off and in limbo. Congress must not leave this unfinished business on its desk before adjourning for the August recess. If that happens, it would mean Congress, by the time it returns in six weeks, would have taken $1.5 billion out of the aviation system.

"Every day of this shutdown means a lost day of progress for the system and a lost day of pay for these laid off employees. This bill directly impacts the lives of real people, including skilled aviation professionals who play a vital role in the safety critical function of the FAA. They have families who rely on them. They have bills, mortgages, rents and student loans. Some have kids in college and tuition is soon going to be due for the fall semester."

HAI President Matt Zuccaro informed his members that that for any transportation occurring between July 23 and the eventual reauthorization of the FAA’s taxing authority, charter operators may not charge their customers for the following items: 7.5 percent passenger tax, segment fees, international facilities fees, Alaska/Hawaii fees, and the 6.25 percent cargo tax.
 
Based upon historical precedent (when aviation excise taxes have previously expired), HAI and other aviation associations in Washington believe it is highly unlikely that the taxes could be applied retroactively.

FMI: www.faa.gov, www.natca.org, www.dot.gov, www.house.gov, www.senate.gov