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March 16, 2000, Thursday FINAL EDITION

SECTION: BUSINESS; Pg. 1

LENGTH: 732 words

HEADLINE: Airport construction money bill approved;
The measure allows passenger fees charged by airports to be raised by as much as 50%.

BYLINE: Maria Recio; Star-Telegram Washington Bureau

BODY:
WASHINGTON - After nearly a year, Congress finished work
yesterday on a three-year $40 billion bill that would sharply
increase spending on airport construction, allow airports to raise
fees on passenger tickets by as much as $6 per round trip, and
boost funds to modernize the air traffic control system.

The bill will expand funding for airport projects by $10 billion
over three years. In fiscal 2001, for example, funding for
Dallas/Fort Worth Airport would increase to $15.6 million, up from
$7.8 million this fiscal year.

The increase of airport construction money in the bill brought it
overwhelming support in this election year. The House approved the
measure by a vote of 319-101. Last week the Senate approved it
82-17. President Clinton has said he will sign it. The Texas delegation split on the bill. Fewer than half of the 13
Republicans voted in favor: House Majority Leader Dick Armey of
Irving, Joe Barton of Ennis, Larry Combest of Lubbock, Kay Granger
of Fort Worth and Lamar Smith of San Antonio.

Among the 17 Democrats, Lloyd Doggett of Austin, Ralph Hall of
Rockwall and Charles Stenholm of Abilene voted against, and Charlie
Gonzalez of San Antonio, Ruben Hinojosa of Mercedes, Solomon Ortiz
of Corpus Christi and Ciro Rodriguez of San Antonio did not vote.

"This legislation will make our skies safer, modernize air traffic
control, reduce flight delays and boost airline competition,"
said the bill's architect, Rep. Bud Shuster, R-Pa., chairman of the
House Transportation and Infrastructure Committee.

Shuster had insisted that passenger fees paid into the airport
trust fund be spent on aviation alone, reversing a practice to
allow trust fund monies to go unspent as a way to make past federal
deficits look smaller. A dispute over this point had held up the
legislation.

"The money the traveling public pays in ticket taxes will finally
be dedicated solely to improving the safety and efficiency of our
aviation system," Shuster said.

The Federal Aviation Administration will get nearly $1 billion
more per year to continue modernizing the aging air traffic control
system.

Debate in Congress focused in part on letting airports boost
passenger fees.

"This bill is a tax bill, and I'm not sure this Congress wants to
be on record raising taxes," Rep. C.W. "Bill" Young, R-Fla., said
during the House debate. Young is chairman of the House
Appropriations Committee.

Shuster replied that those fees are under "local control." He
said that makes it a "conservative issue."

The bill would permit an increase of $1.50 in the passenger fee
for each flight segment. Currently, airports can charge up to $3 on
a flight segment.

The fees are limited to two flight segments per ticket. So a
passenger on a flight that makes one stop would pay $18 per
round-trip ticket, up from the current maximum of $12. A passenger
on a flight that makes more than one stop would also pay a maximum
of $18.

The Aviation Consumer Action Project objected to the ticket tax
increase.

"We're opposed to it without accountability," said Paul Hudson,
the group's executive director. "Before there is a major consumer
tax increase, it should be justified."

The airlines took a neutral position, although even Southwest
Airlines, a longtime opponent of the fees, did not object.

"If that's the price of having the airport funds released, then
it's worth it," said Herb Kelleher, chief executive officer of the
low-cost Dallas-based carrier. "It is a local option. I hope the
airports will be sparing."

Many airports, including D/FW, support the ticket fee increase to
pay for airport improvements. Kevin Cox, the airport's first deputy
executive director, said the fees secure financing in the bond
market for a $2.5 billion capital improvement plan.

But Cox said of the ticket fee, "We have no intention of
immediately increasing it at this time."

Todd Hauptli, senior vice president of the American Association
of Airport Executives, said: "I don't think anybody is likely to
increase it immediately. Once the FAA regulations are in place, a
lot of airports are looking to impose the higher fees."

This report contains material from The Associated Press.

Maria Recio, (202) 383-6103
mrecio@krwashington.com

LOAD-DATE: March 16, 2000