Administration's Continuing Assault On 'All Things Aviation' Continues

ANN has been slogging through hundreds of pages of budget documents published in the last few days by OMB and the DoT in order to get a grasp on what will happen to this industry, as far as interaction and funding/taxation by the government is concerned. One tiny little paragraph, which one can only assume was meant to be buried (in that is it signals not only a massive policy shift, but one that the DoT KNEW would draw extensive attention) is creating serious heartburn in that it seems to have been dumped in, incognito, in order to try and sneak one past us for as long as they could get away with it.

As usual, the inhabitants of the various Washington Puzzle Palaces actually undervalued both our interest and ability to read. Inserted within the Budget Estimates is the following language... which literally produced the obligatory chill-down-spine reflex that comes all too often these day to those trying to figure out what the government is going to do next is the following language on page 11 of the 857 page adobe acrobat file: "Starting in 2011, the budget assumes a scenario where most of the air traffic control system would be paid for by direct charges levied on users of the system. The FAA’s current excise tax system, which generated $12.4 billion in 2008, is largely based on taxes that depend upon the price of customers’ airline tickets, not FAA’s cost for moving flights through the system. The Administration believes that the FAA should move towards a model where FAA funding is related to its costs, the financing burden is distributed more equitably, and funds are used to directly pay for services the users need. The Administration recognizes that there are multiple ways to achieve these objectives. Accordingly, the Administration will work with stakeholders and Congress to enact legislation that moves toward such a system. The potential scenario displayed in the Budget estimates FAA would collect $9.6 billion for air traffic services in the first year and credits those collections as discretionary user charges."

In the much shorter summary sheet provided to explain the FAA budget, the following language is evident as well: "FAA Reauthorization:  The Vision 100 — Century of Aviation Reauthorization Act, as extended by Congress, expires on September 30, 2009. Starting in 2011, the Budget assumes that the air traffic control system will be funded with direct charges levied on users of the system. The FAA’s current excise tax system is largely based on taxes that depend on the price of customers’ airline tickets, not FAA’s cost for moving flights through the system. The Administration believes that the FAA should move toward a model whereby FAA’s funding is related to its costs, the financing burden is distributed more equitably, and funds are used to pay directly for services the users need. The Administration recognizes that there are alternative ways to achieve these objectives. Accordingly, the Administration will work with stakeholders and the Congress to enact legislation that moves toward such a system."

ANN is still analyzing the language in nearly 900 pages of documentation and dozens more being supplied from sources throughout the industry -- one thing is clear -- the Administration's ability and willingness to harm this industry, intentionally or not, continues unabated and the potential for even more extensive damage seems not only possible, but probable, if these type of efforts continue. We'll keep you informed...

FMI: www.dot.gov, www.dot.gov/budget/2010/bib2010.htm#faa, www.dot.gov/budget/2010/budgetestimates/faa.pdf