LEXIS-NEXIS® Congressional Universe-Document

LEXIS-NEXIS® Congressional

FEBRUARY 10, 1999, WEDNESDAY

SECTION: IN THE NEWS

LENGTH: 1740 words

HEADLINE: PREPARED STATEMENT OF
EDWARD M. BOLEN
PRESIDENT
GENERAL AVIATION MANUFACTURERS ASSOCIATION
BEFORE THE HOUSE TRANSPORTATION AND INFRASTRUCTURE COMMITTEE
SUBCOMMITTEE ON AVIATION
SUBJECT - ECONOMIC IMPACT OF AVIATION
AND THE REAUTHORIZATION OF
THE FEDERAL AVIATION ADMINISTRATION

BODY:

Mr. Chairman, since Congress passed the General Aviation Revitalization Act in 1994, the general aviation industry has experienced tremendous growth. Sales of general aviation aircraft have more than doubled, exports have increased significantly, production lines have opened and tens of thousands of high-tech, well-paying manufacturing jobs have been created.
Today, the United States is the undisputed world leader in all aspects of general aviation. It is also the undisputed world leader in all aspects of commercial and military aviation.
But Mr. Chairman, this is no time for the United States to be complacent. Other countries have recognized the benefits of a strong aviation industry. They know that this is a high-tech, growth oriented industry of the future, and they are anxious to challenge the US as aviation's world leader.
In order for us to stay the preeminent aviation country in the world we need to be willing to invest in aviation infrastructure. We need to invest in our airports. We need to modernize our air navigation and communication systems. And, we need to provide the FAA with the resources to attract and keep the quality personnel it needs to perform the functions the general public demands of it.
Airports
Mr. Chairman, in the past twenty five years our nation has seen a decline of almost 23 percent of its general aviation airports. In 1973, there were 6,914 public use general aviation airports in the United States and today there are only 5,352.In order for the general aviation industry to fulfill its potential and provide economic benefits to citizens throughout the country, the we need to halt the tide of closures and invest in our remaining rural and metropolitan general aviation airports.
General aviation provides critical access to communities not served by air carriers. It connects small communities and businesses to the economic mainstream. Without access to airports, local officials would not be able to attract new business and economic investment in their communities.
Recently, the State of Georgia implemented an aggressive program for improving general aviation airports in that state. GAMA joins NATA in urging Congress to launch a federal initiative along similar lines.
At the present time, there is a great deal of concern in the general aviation community about losing the construction season if an extension of the Airport Improvement Program is not enacted prior to April 1. GAMA appreciates the quick and decisive action the House has taken in this matter. Losing the construction season would have a very negative and long-lasting impact on our nation's airport infrastructure.
Modernization
As the subcommittee knows, the United States is attempting modernize its air space architecture. The goal is to improve system safety, capacity and efficiency. It is an important and very necessary endeavor.
Aviation traffic, including general aviation traffic is expected to grow over the next decade. In order to accommodate that growth we need to modernize our navigation and communication system and take advantage of the benefits of new technology. I realize that some say all we need to do to increase capacity is privatize air traffic control or establish a Performance Based Organization. But Mr. Chairman, corporations and a PBO arc political answers to what is a technical question.
If you ask the technical experts who are working on the capacity issue, they will tell you that organizational charts will not change the reality of the current aircraft separation minimums or any other practical limitation on the system.
If we are truly going to increase system capacity, safety and efficiency we need to deploy new technologies. We need to transition from our current ground based navigation system to a satellite based system. And we need to give pilots the information they need to operate in a "Free Flight" environment.
A cornerstone of the modernization effort is the Wide Area Augmentation System or WAAS. Among other things, this system of satellites and ground stations can increase safety by allowing precision approaches at 1,500 airports that do not currently have this capability.I realize that the WAAS program has not been without flaws. However, it is an essential part of the modernization effort and GAMA urges that the program move forward.
The FAA
Mr. Chairman, when we talk about investing in the future, I don't think we can overlook the importance of an adequately funded, technically competent and well-motivated FAA. Today the FAA is the best aviation authority in the world. If the United States is to stay the world leader in aviation we need to continue to have a strong national aviation authority.
One of the reasons the general aviation industry is doing so well right now is that manufacturers are bringing to the market a large number of innovative new products, which improve safety and expand the operating envelope of general aviation. The fact that general aviation products have won the Collier Trophy for the nation's greatest achievement in aeronautics for past two years underscores the innovation that is taking place in this important market segment.
Because Congress requires and the public demands that all new aviation products be certified before reaching the market, it is essential that the FAA have the people and resources it needs to perform its certification function. If the FAA does not have an adequate pool of certification personnel who understand these new technologies, innovation will be stifled and important advances will be kept out of the marketplace.
Again, Mr. Chairman, some will tell you that the answer for FAA is to change its structure and to create a Performance Based Organization. GAMA opposes this approach. Instead, an alternative to the PBO that GAMA could support is an Independent FAA. This proposal would give FAA the autonomy it desires, allow decisions to be streamlined and give the FAA Administrator clear accountability for management of the FAA. We believe it is important for the regulatory side of the FAA to be aligned with the air traffic control side of the FAA. Separating the safety function from the air traffic services function is a mistake.

These two responsibilities of the FAA are intertwined and should remain that way.
FAA Funding
Mr. Chairman, it is impossible to talk about the need for aviation investment without talking about the all important and highly controversial funding issue.
As this subcommittee well knows, aviation funding has been a very hot topic for the past several years. The debate has focused not just on the amount of funding but also the mechanism through which funds are generated and made available for use.
At the heart of the issue have been proposals that would eliminate the General Fund contribution and replace the current aviation excise taxes with user fees. To date, Congress has rejected all such proposals. We urge you in the strongest terms possible to continue to do so in the future.As this subcommittee knows, the General Fund contribution traditionally accounts for about 25 to 30 percent of the total FAA budget or roughly $2 billion annually.
The policy purpose for a General Fund contribution is well established. Congress has always recognized that all Americans-- including those who never get on an airplane--benefit from having a strong and safe air transportation system. This public benefit which is inherent in a safe air transportation system is the reason general taxpayer revenues are used to fund a portion of the FAA's operating costs.
In 1997, the National Civil Aviation Review Commission looked at the General Fund contribution and concluded that its continuation was both appropriate and necessary. The Commission reaffirmed that many of the FAA's activities are performed for the sole purpose of protecting the public's interest in safety. As a result, the Commission concluded that the FAA's security and safety services should be paid for with general taxpayer revenues.
With regard to user fees, I believe Congress has been wise to reject the various user fee proposals and retain the current aviation excise taxes.
Aviation user fees exist in a number of foreign countries and without exception they have been detrimental to general aviation. User fees can be difficult to understand. They can provide a disincentive for certain safety practices. They can be a record keeping nightmare. And they can be used to fund the inefficiencies of government run monopolies.
In contrast to user fees, general aviation fuel taxes are easy for taxpayers to understand and easy for taxpayers to pay. There are no record keeping requirements. No complicated invoices. Just a simple pay as you go mechanism which is difficult for taxpayers to avoid and inexpensive for the government to collect.
Although GAMA strongly supports a continuation of the current aviation excise taxes we are concerned about large surpluses accumulating in the Airport and Airways Trust Fund. Currently, the Airport and Airways Trust Fund has a cash balance of $ 8.5 billion. That figure is expected to grow to $60 billion by the year 2009.
The General Aviation Manufacturers Association believes strongly that revenues generated from the aviation industry should be used solely for aviation purposes. Substantial surplus should not be allowed to accumulate in the Airport and Airways Trust Fund in order to mask the size of the national debt or to help fund other government programs.
Although GAMA advocates increased spending on our aviation infrastructure and on certain FAA operations related to certification, we recognize the important role Congress has played over the years in making sure that aviation revenues are spent wisely. We believe strong Congressional oversight of the FAA's operating budget should continue. We do not want money to be spent if it cannot be used effectively and efficiently.Conclusion
Mr. Chairman, we are at a critical point in our nation's aviation history. Today we are the world leader in all aspects of aviation but challenges exist. Now is the time to prepare for those challenges by investing in the future.
We applaud the House Committee on Transportation and Infrastructure for making aviation a top priority this year and we look forward to working with all members of this subcommittee on making the "year of aviation" a success.
END

LOAD-DATE: February 11, 1999