LEXIS-NEXIS® Congressional Universe-Document

LEXIS-NEXIS® Congressional

FEBRUARY 10, 1999, WEDNESDAY

SECTION: IN THE NEWS

LENGTH: 1634 words

HEADLINE: PREPARED STATEMENT OF
THE HONORABLE JAMES K. COYNE
PRESIDENT, NATIONAL AIR TRANSPORTATION ASSOCIATION
BEFORE THE HOUSE COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE
SUBCOMMITTEE ON AVIATION
SUBJECT - THE FINANCIAL NEEDS AND THE BENEFITS AIRPORTS
PROVIDE TO THE LOCAL ECONOMY

BODY:

INTRODUCTION The National Air Transportation Association (NATA) represents nearly 2,000 aviation businesses owning, operating and servicing aircraft. These companies serve the traveling public by offering services and products to aircraft operators and others such as fuel sales, aircraft maintenance, aircraft parts sales, aircraft storage, flight training, non-scheduled air charter, aircraft rental, and scheduled commuter operations in smaller aircraft. NATA members are the vital link in the aviation industry that provides services to the airlines, general aviation, and the military.
The members of the NATA are enthusiastic about the opportunity Congress has to approve legislation to establish financing for airport improvements necessary to meet the growing demands of communities across the country. This year is pivotal for approving a Federal Aviation Administration (FAA) authorization bill incorporating an Airport Improvement Program (AIP) that will lead the Nation into the 21st century.
FAA BUDGET PROPOSAL Before addressing the future, it is important to comment on the Administration's recent budget proposal that includes no general taxpayer revenues to support the operations of the FAA, approximately $1.5 billion in user fees and cuts in AIP. Our recommendation on the President's budget is simple; reject it. We believe these concepts in the budget ignore the importance of an air transportation system to the country that benefits every citizen whether or not they fly.
Virtually any group, including the National Civil Aviation Review Commission (NCARC), that looks at the FAA's financing agrees that safety and security oversight are governmental functions that benefit all citizens. These should be paid for by the federal government's general fund. Likewise, the economic impact aviation has on the Nation merits support by general taxpayers. In addition, general revenues should also pay for the cost of government aircraft use of the air transportation system.
It is unconscionable that user fees are being proposed when the Aviation Trust Fund has an uncommitted balance of over $4.3 billion dollars. Rather than address the revenue raising issue that in our view is best accomplished through fuel taxes, the Congress should provide for ways to encourage spending of the aviation taxes to meet the capital needs for airport development, airway modernization and research. The FAA, airport operators and air carders have identified the need for increasing spending particularly on airport development.
The $1.6 billion recommendation in the budget is certainly moving in the wrong direction. The funding levels for airport development should be increased, not decreased. Again, with the tax revenues being generated by assessments on air transportation and aviation fuel, the federal government should spend the money as intended, including for improvements in and the modemization of airports.
ECONOMIC IMPACT OF GENERAL AVIATION ON LOCAL COMMUNITIES AND THE ECONOMY Access to the air transportation network for a community translates directly to good jobs, affordable housing, quality modem medical care, and a clean environment. The individuals who live in towns and cities where the value of the airport is recognized clearly benefit in a better quality of life. For many communities, general aviation airports are the only readily accessible link to the national and international air transportation system and are a valuable economic resource.
For example, in the State of Tennessee the economic benefit to the State from general aviation is $3 billion, providing 49,000 jobs. The impact of general aviation is also local. Greater Kankakee Airport in Illinois had a total economic impact of $18.6 million, including 100 full-time and 297 part-time jobs. This airport serves the communities of Kankakee (pop. 27,575), Bradley (.pop. 10,792) and Bourbannais (pop. 13,934).
The chart below details data collected from the states on the economic impact of general aviation.
Economic Benefits and Jobs Created by General Aviation in Selected States State Economic Benefits Jobs Arizona $1.5 billion 22,000 Arkansas $369 million 6,067 Colorado $556 million 8,200 Florida $3.0 billion 48,000 Georgia $334 million 5,168 Idaho $82 million 1,421 Illinois $188 million 1,767 Kansas $399 million 5,070 Maryland $348 million 3,850 Minnesota $900 million 15,000 Mississippi $90 million 1,380 New Jersey $1.3 billion 15,961 North Carolina $278 million 2,700 Oklahoma $10.2 billion 231,000 Oregon $422 million 5,500 Pennsylvania $380 million 5,317 Tennessee $3.0 billion 49,000 Utah $278 million 4,420 Vermont $288 million 9,500 Virginia $175 million 3,270 Wisconsin $568 million 8,155 Wyoming $236 million 3,870
Source: States
The consequences for inadequate airport facilities or the lack of an airport are significant. According to a study by the State of Oregon, communities without an airport are less likely to bring in new jobs from outside the region. The State of New Jersey found that general aviation airports are a major factor in relocation decisions for both small and large businesses.
Former Senator Wendell Ford, a respected aviation expert, stated it best in the following quote:
In the early part of this century, a community was hard pressed to survive without a railroad station. Today, our airports have replaced the railroad station and the train's tracks across the countryside have been replaced by the plane's contrails across the open skies. Just as railroads played a critical role in the economy of yesterday, so too do airplanes and airports play an important role in today's economy. As the U.S. population and economy grow, there is a corresponding increase in the use of general aviation aircraft. This is especially true in the use of turbine-powered business aircraft. Whether operated by individual companies, air charter companies or the growing use of fractional ownership, the FAA anticipates significant increases in the use of turbinepowered aircraft. A nearly 60 percent growth is being projected between now and the year 2010 for these operations.

There are others in the aviation industry that expect an even more optimistic future. Clearly, the demand for access by turbine-aircraft is going to increase.
Working closely with communities and the states, the FAA has identified 806 general aviation airports that must be developed/expanded or improved to meet the requirements of turbine- powered business aircraft. The estimated development cost for these airports is $3.3 billion and includes funding for capacity safety projects. This includes rehabilitating runways and taxiways along with installing navigational equipment.
The incentive for implementing improvements at these 806 airports quite literally can make all the difference for the community. The State of Michigan found that a community received less than two million dollars in benefit from an airport with runways that are too short and have no navigational aids to accept flights from turbine- powered aircraft. However, the impact was $13 million at airports with a runway capable of accommodating turbine-powered aircraft and that provide precision instrument approach capability for all weather operations.
NEW ACCESS INITIATIVE FOR SMALL AIRPORTS NATA urges this Subcommittee to include a provision in the FAA reauthorization legislation that encourages development of small airports that link both rural and urban communities to the Nation's air transportation system. A commitment to fund development at these 806 airports is essential to seeing that needed improvements are made.While we are extremely pleased and support the concept of language included by the FAA in its request to address these airports, NATA has several recommendations that would provide the affected communities with a program that moves them into the 21st century air transportation network.
NATA strongly supports the policy statement in section 312 of the FAA- recommended legislation stating "that priority consideration should be given to encourage development identified by the Secretary of Transportation, in consultation with State aviation officials, as warranted, to support operations of turbine-powered aircraft at nonprimary airports to the extent possible with available funds and considering other airport needs."
Rather than the FAA's section 303 funding formula, NATA recommends that this Subcommittee approve a 60 percent federal share for projects meeting the requirements of the policy statement. This level of federal investment would better reflect a commitment by the federal government to the development of this critical infrastructure to improve safety and access for these communities.
In addition, NATA believes there is no need for the FAA-proposed requirement in section 303 for proof of aviation benefits to the public. We object to this requirement because (1) the affected airport projects have already been identified in the FAA's planning process, (2) the formula requires an increased proportion of local airport sponsor investment over that normally required, and (3) the economic benefits from general aviation to the states have already been clearly identified. Rather than spending extremely limited funds attempting to meet unnecessary paperwork requirements for proving the benefit of a project, these communities need incentives to develop general aviation airports.
A study is attached, titled "American Aviation Access Initiative - Providing All Americans With Access to Air Transportation," that analyzes the needs and supports the funding proposal for the Nation's small airports.
NATA appreciates the opportunity to testify before the Subcommittee and would be pleased to address any questions.
END

LOAD-DATE: February 11, 1999