NEWS RELEASE
WASHINGTON, Sept. 18, 2007 – The Air Transport Association (ATA), the trade organization representing leading U.S. passenger and cargo airlines, today hosted an industrywide fly-in rally of airline pilots, flight attendants and other employees, urging Congress to pass legislation that would modernize the air traffic control (ATC) system and create a fairer funding structure.
Rally participants told Congress that it was past time to both modernize our 1950s vintage ATC system and to terminate the outrageous subsidy passengers are required to pay to support corporate jets. Currently, airline passengers pay 92 percent of the Airport and Airway Trust Fund (AATF) contributions but drive only 66 percent of costs – the rest (almost $2 billion) is subsidy.
“The public deserves much better,” said ATA President and CEO James C. May. “We can address today’s airport delay problems and do it much more cost effectively for passengers if – and only if – Congress acts promptly to fairly reauthorize the trust fund. We are fed up with gridlock, delay and an unfair funding system – the time for Congress to act is now.”
At the same time, rally participants told Congress that just throwing money at airports is no solution. The proposal for a 56 percent increase in airport taxes (from $4.50 to $7) to pay for programs like airport bicycle lockers and hot dog stands must be scrapped while Congress figures out how to optimize airport runway and gate funding.
“The passenger facility charge (PFC) tax that I am working to defeat is bad for consumers, bad for travelers and bad for businesses,” said Rep. Nick Lampson, D-Texas. “Raising this tax means that a family of four will have to pay $112 in additional costs for a round-trip flight with one connection. That’s a pretty big hit for families traveling to see loved ones during the holidays and, in some cases, enough to prohibit a family vacation.”
“Airports get $13 billion a year from bonds, Federal Aviation Administration (FAA) grants, and state and local aid,” said Rep. Ted Poe, R-Texas. “Passengers do not need to spend any more in taxes to fly.”
“Congress must address this inequitable tax burden – this year – as it will be the last chance for years to create fairness in the way the FAA is funded,” said Duane Woerth, Northwest Airlines 747 captain and former president of the Air Line Pilots Association. “The current unfair tax burden has materially harmed all airline employees and their customers.”
“Smart Skies beats the not-so-smart approach in the current House aviation bill by miles, and Congress needs to look overhead to the future. Higher PFCs for airports are no better than higher gas taxes for more pork-barrel highway projects,” said Peter Sepp, vice president of communications for the National Taxpayers Union. “Only a customer-driven ATC system, based on a prudent, accountable funding process, can give the nation's taxpayers and passengers the travel they deserve.”
ATA airline members transport more than 90 percent of all U.S. airline passenger and cargo traffic. For additional information about the industry, visit www.airlines.org.
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