WASHINGTON, May 2, 2007 – The Air Transport Association (ATA), the trade association for the leading U.S. airlines, commented on the proposed Rockefeller-Lott FAA reauthorization bill.
ATA's primary goal in the reauthorization process has been to ensure a transformation to a modernized air traffic control (ATC) system supported by a stable and fair financing mechanism. The Rockefeller-Lott proposal is a good move toward accomplishing this goal. The bill is consistent with the ATA’s reauthorization principles in many ways:
- The $25 modernization surcharge recognizes that aircraft with similar operating characteristics drive similar costs – and must be expected to contribute fairly to needed system modernization.
- The transition to a modernized ATC system will also be helped by the creative financing authority given to the Department of Transportation.
- Another important aspect of this legislation is its rejection of efforts to RAISE the tax burden on passengers through increases in passenger facility charges.
- Importantly, the proposal also recognizes that with a next-generation ATC system, costs can be reduced and efficiencies gained by realigning and streamlining services and facilities while improving safety technology.
- By strengthening the current oversight board to give it meaningful authority over the direction of modernization, the authors of the proposed bill have recognized that all industry users need to be engaged in the process of determining how the new system should function. We believe the proposal could be improved by increasing carrier representation to reflect proportion of use and payment into the system.
ATA carriers realize that the important decisions of determining an equitable cost-and use-based tax to support the current system is a critical next step, which will be determined by the Finance Committee, on which Sens. Rockefeller and Lott are senior members.
“While there are more than four months remaining before the expiration of the Airport and Airway Trust Fund, the Rockefeller-Lott proposal reaffirms the absolute need for a modern, fair and dependable funding stream to respond to the growing demand for air transportation,” said ATA President and CEO James C. May.
ATA members transport more than 90 percent of all U.S. airline passenger and cargo traffic.
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