LEXIS-NEXIS® Congressional Universe-Document

LEXIS-NEXIS® Congressional

MARCH 18, 1999, THURSDAY

SECTION: IN THE NEWS

LENGTH: 844 words

HEADLINE: PREPARED STATEMENT OF
ANDREW H. CARD
U.S. CHAMBER OF COMMERCE
BEFORE THE HOUSE TRANSPORTATION AND INFRASTRUCTURE COMMITTEE
SUBCOMMITTEE ON AVIATION

BODY:

Good afternoon, I am Andrew H. Card, a Fellow for Public Policy for the U.S. Chamber of Commerce. The U.S. Chamber is the world's largest business federation representing more than three million businesses and organizations of every size, sector and region.
I have had the pleasure of working with you on issues affecting transportation over the years and appreciate the opportunity to join you today. I salute the historic role that you have had and continue to play in modernizing and improving our nation's transportation system to protect lives and promote economic growth throughout the nation.
I am here today to share the concerns of businesses who rely upon a safe, efficient and sound transportation system as well as my perspective as a former Secretary of Transportation.
Efforts to expand government involvement in the marketplace are of enormous concern to any business. It is our view that airline passenger service proposals would be an unnecessary intervention in the marketplace that would likely increase costs for businesses and consumers, stifle innovation and raise safety issues. For example, imposing financial penalties on airline operations and decisions about the time passengers await to takeoff suggests that the reasons for these delays are arbitrary. In fact, there are very good reasons for delaying flights ranging from inclement weather to inadequacy of the system. I expect everyone would rather airlines to exercise delays in order to be safe rather than sorry.
The question that we really should be asking is whether the federal government should be the customer service center for aviation companies or whether the federal government should use its resources for something ultimately more productive. This brings me to the need to improve aviation infrastructure.
It is in the best interest of every single business to provide the highest quality of products and service to its customers that are within their control. The vast majority of airline service problems result from inadequate aviation infrastructure and, most importantly, an outdated Air Traffic Control system (ATC). In 1998, the FAA experienced 101 significant system outages (of more than 10 minutes) where air traffic controllers lost some or all of the primary systems that help them track aircraft location and flight information. Forty- three of these outages lasted longer than an hour and one lasted for five days.
Twenty-six percent of airport runways require rehabilitation. Within the next 10 years, 50% of airport runways will require rehabilitation (including 75% of runways at large and medium hubs) according to the General Accounting Office.
Today, the capacity of our infrastructure to safely handle flights and passengers is stretched almost to the limit. The system has no alternative other than massive delays when there is bad weather and ATC delays. Sixty-five percent of all airline delays and cancellations are the result of an overworked and outdated air traffic control system.
Your legislation, the Aviation Investment and Reform Act for the 21st Century (AIR-21), would be tremendously helpful in addressing this problem. Unlocking the Aviation Trust Fund would ensure that the user taxes collected by airline passengers and shippers, the airlines and private aircraft owners are fully dedicated for their intended purpose of improving our nation's aviation infrastructure. It is a breach of faith for this government to continue the practice of not fully investing these user fees for their intended purpose. It is not only an issue of tax fairness but is critical to economic growth and helping to maintain our competitive edge in the global marketplace.
The urgency for Congress to unlock the Aviation Trust Fund is critical. In the past five years, domestic air travel has grown by 27% to 655 million passengers. In ten years, the number of passengers served is expected to reach over 1 billion passengers annually. Neglecting to meet the current and future needs of the system can only result in increased airline delays and compromised safety.
Lower fares, better service, and getting to our destinations safely are goals that all businesses want. To do so, we must expand capacity and modernize the Air Traffic Control System. As we debate new regulations on customer service, the state of our infrastructure continues to deteriorate. According to the National Civil Aviation Commission created by Congress, without prompt action, the system will soon be in total gridlock.
Furthermore, while the focus of these proposals is on the commercial airline industry, they create fear that potential government intrusion in the marketplace could spread to other sectors of the economy as well.
The Chamber is committed to working with you to unlock the Aviation Trust Fund to enhance and improve our nation's aviation infrastructure system. Thank you for the opportunity that you have provided me to discuss the U.S. Chamber's concerns with this panel. I am glad to respond to any questions that you may have.
END

LOAD-DATE: March 23, 1999