Coyne Testifies Before House Aviation Subcommittee

At a US House of Representatives committee hearing on the financial condition of the Airport and Airway Trust Fund Wednesday, NATA President James K. Coyne warned of the adverse effects that altering the funding stream for the trust fund could have on general aviation and other aviation businesses.

Testifying before the House Subcommittee on Aviation, chaired by Rep. John L. Mica (R-FL), Coyne (right) discussed the benefits of the current funding system, which combines both excise taxes and fuel taxes to generate revenue for the trust fund. There is wide debate across the aviation industry as to the health of the trust fund and what, if any, changes should be made to improve revenues.

Coyne discussed in detail the potential dangers a "user fee" system would have on general aviation, including both commercial and recreational operators. "While there are certainly a number of questions that need to be answered before Congress contemplates any change in the current funding structure for the aviation trust fund, it is critical that Congress be aware that overall a system of user fees could add greater confusion and inefficiency to the air transportation system, cause a bureaucratic nightmare for both government and industry, jeopardize safety, and ultimately result in less revenue than in the current system," Coyne testified.

Coyne noted that on-demand air charter operators are classified as commercial air carriers and pay the same passenger ticket tax and segment fees as scheduled airlines, despite not receiving the same treatment from air traffic control service.

 "In heavily congested air traffic areas, charter and general aviation traffic are the first to see their flight plans curtailed, while the FAA does very little to reduce airline service into a particular airport," he said.

Safety concerns regarding the implementation of possible general aviation user fees were also discussed in Coyne’s testimony. "User fees would discourage operators from using airports with controlled airspace and control towers and cause them to decide to use non-towered airports with limited or no air traffic control service to avoid the hefty user fees; increasing the traffic flow at airports least equipped to manage it. Even more worrisome is that operators may avoid filing instrument flight plans when marginal weather exists to avoid operating in what would be a safer, radar-controlled environment because of the fees involved. One of the leading causes of general aviation accidents is unintentional flight into poor weather. A user fee system would discourage small operators from using the very air traffic control services that could help keep them flying safely."

Coyne concluded his testimony stating that the current system of excise and fuel taxes is the most fair and efficient way for all aviation entities to contribute to the trust fund.

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