NEWS

Airlines Support Firm Stand to Unlock Trust Funds

House Rejects Inadequate Senate Proposals

Washington, DC -- The Air Transport Association (ATA) today expressed the airline industry’s firm support for unlocking aviation trust funds as part of the Federal Aviation Administration (FAA) reauthorization bill. Last night, Chairman Bud Shuster (R-PA) of the House Transportation and Infrastructure Committee rejected a Senate proposal which failed to unlock the aviation trust fund.

“Chairman Shuster is standing firm and working to see that the taxes airline passengers pay are actually used to improve the aviation system,” said Carol Hallett. “His decision to reject this proposal is the right decision and we support him.”

The House and Senate have been involved in a conference to resolve differences between their respective FAA reauthorization bills. The top issue of contention is a House proposal to unlock the aviation trust fund or build firewalls around the aviation budget and allow all money collected by the government from airline passengers to be spent to improve the aviation system. Presently, there is an $11 billion surplus in the trust fund which earns over $1 billion in interest each year. The government does not spend this money because it exaggerates the size of the budget surplus and allows more spending in other areas.

“We do not support a short term reauthorization of this legislation because it would only draw out the process and hurt aviation,” continued Hallett. A short term reauthorization is not necessary for the FAA to continue its mission.

A second, important, issue of contention is a contribution to the aviation system from the government’s general tax fund. For the past 25 years, the government has spent general funds to improve safety and security; the contribution also covers usage of the air traffic control system by general aviation and the military.

“By the year 2010, the number of annual passengers in the United States will rise to over 1 billion,” concluded Hallett. “If we have any hope of meeting the needs of the flying public, the Congress must take the proper financial steps. This means unlocking the trust fund and continuing the general fund contribution.”

The Air Transport Association is the airline industry’s trade association and its members transport over 95% of all the passenger and cargo traffic in the United States.

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12/30/1999