Does This Mean We're Due A Refund?
The next time some wag
tells you that BizAv is not paying it's fair share of the costs of
running the nation's aviation infrastructure, tell them they are
ill-informed. The business aviation community pays more than 100
percent of its share of the costs it imposes on the Federal air
traffic system, according to a new study by the consulting firm of
HLB Decision Economics, Inc. The study found that business users
“pay more in Federal aviation user fees than the total costs
borne by the Federal government to provide them with aviation
services.”
The study, funded by the National Business Aviation Association
(NBAA), showed that the business aviation community paid $188
million in Federal excise taxes as its share of Federal aviation
costs in fiscal year 2001. That amount is 102 percent, or $4
million, more than the cost identified by the Federal Aviation
Administration (FAA) in FY 2001, the last year for which data is
available.
“This study
refutes recent suggestions that the general and business aviation
community does not pay its fair share of the costs of operating the
nation’s air traffic control system,” said NBAA
President and CEO Ed Bolen. “Not only does business aviation
pay what it owes, it actually pays more.”
The study concludes that the overcharging results in business
aviation users reducing their use of the system and
“diminishes the contribution of business aviation to national
economic growth.” Estimates are that business aviation
contributes $102 billion each year to the U.S. economy, and
accounts for 1.3 million jobs.
Although the FAA has claimed that general aviation underpays,
the study found that the agency’s calculation methods and
methods of assigning cost responsibility have varied widely for
years. In fact, the study found the FAA based its most recent
estimates on a methodology rejected by Congress for other Federal
transportation agencies.
In addition, the study
found that the FAA assigns to general aviation alone “a
sizeable amount” of “common costs” that are
incurred on behalf of all users, including commercial airlines and
the military.
Noting that the debate about cost responsibility has dragged on
for decades, the study urged action by Congress to bring more
fairness to aviation funding. “Finding a long-term, stable
policy solution must begin with Congressional direction to FAA
regarding cost-allocation principles,” the study
concluded.
“We look forward to working with Congressional leaders to
act on the study’s recommendations to develop a fair and
reasonable system that works for all users,” Bolen said.