NEWS RELEASE
WASHINGTON, March 21, 2007 – James C. May, president and CEO of the Air Transport Association (ATA), the trade association for the leading U.S. airlines, today testified before the Aviation Subcommittee of the House Committee on Transportation and Infrastructure about the critical need to implement and fund a 21st century national air traffic control (ATC) system.
In congressional testimony, May stated that a modernized and equitably funded ATC system will facilitate safety and capacity improvements that would benefit all sectors of our society. He explained that a state-of-the-art system leveraging 21st century satellite-based technology, rather than the existing 1950s earth-bound infrastructure, would provide these improvements to all system users – general aviation, corporate aviation, commercial airlines and the military. Under such a cutting-edge system, the U.S. airline industry would continue to expand its ability to move people and goods quickly and economically. May said that inaction was not an option.
“Without prompt and thorough modernization, the ATC system will progressively asphyxiate,” said May. “The stakes are enormous; the public-interest considerations are clear; and the need for prompt, decisive action is undeniable. If we do not act now, irrefutably we will see many more delayed flights and airspace gridlock.”
May stressed that to match a modernized ATC system, Congress must also reform its 1970s funding scheme that unfairly taxes airlines and their customers while subsidizing corporate aviation. May testified that the ATC system must be funded such that revenue keeps our nation’s air commerce vibrant and responsive to consumer needs and can be provided fairly and predictably.
May’s testimony laid out four key, equitable financing principles:
- Cost-based usage fees
- A robust general fund contribution
- Innovative financing authority – such as the authority to issue bonds – to pay for expanding capital needs
- Cost savings from improved ATC system efficiencies
May stressed the importance of establishing a reliable funding system that will enable the ATC system to realize the full potential of emerging technologies, while equitably distributing costs among system users in relation to the services they consume.
“A tripling of the fuel tax will force airline passengers to pay $1 billion annually to general aviation airports under the Airport Improvement Program. These are airports where commercial carriers do not fly and that is unacceptable,” said May.
“There is no correlation today between revenue collected and services consumed,” said May. “Corporate aircraft cannot continue to get a free ride, congest the system and pass the costs they impose on to airline passengers and shippers.”
May pointed out that other countries have introduced equitable funding arrangements to modernize their ATC systems.
“This is neither novel nor revolutionary. Congress faces a historic opportunity to ensure that our air transportation system keeps pace with global aviation,” said May.
The full text of May’s testimony.
ATA members transport more than 90 percent of all U.S. airline passenger and cargo traffic.
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