NEWS

Airlines Support Unlocking Aviation Trust Fund

Critical Role Seen for Appropriations and Authorizing Committees

Washington, DC - Carol Hallett, president and CEO of the Air Transport Association (ATA), today announced the strong and unified support of the airline industry for unlocking the Aviation Trust Fund. Hallett made her comments while testifying before the Subcommittee on Aviation of the House Transportation and Infrastructure Committee.

"The ATA airlines believe that fundamental change is required, to ensure that aviation infrastructure modernization becomes a reality," said Hallett. "The Aviation Trust Fund must be unlocked, to meet the needs of the traveling and shipping public for a safe, efficient and reliable system."

During FY '98, $8.1 billion was collected from airline passengers and shippers, airlines themselves and private aircraft owners and deposited in the Aviation Trust Fund. Of this sum, $2.8 billion went unspent. The Transportation and Infrastructure Committee is presently considering H.R. 111, which would unlock this unspent trust fund balance.

As "important as the role of the authorizing committees - is the equally critical role to be played by the appropriations committees," continued Hallett. "We feel strongly that the appropriations committees must retain their authority to oversee the FAA's budget, ensuring that the various projects and programs are carefully scrutinized."

Hallett also stressed that, as part of these reform measures, the contribution from the general fund to the FAA's total budget must become permanent and mandatory. Presently, this contribution is in the range of 30 percent and covers the cost of regulatory functions; provision of services to those who do not pay the full amount of the costs they drive and the general governmental functions of the Federal Aviation Administration.

The airlines' long-standing opposition to raising the caps on Passenger Facility Charges (PFCs) and support for tighter controls on PFC spending were also stressed in the hearing. PFCs are federally approved taxes on airline passengers of $3 per person, per airport, with a $12 limit. Hallett stressed that, with unlocking the trust funds, an increase in this head tax becomes unnecessary. "Airline passengers are taxed enough and the Administration's plan to increase these taxes by 66 percent should be soundly rejected by Congress," Hallett added.

The Air Transport Association is the nation's oldest and largest airline trade organization. ATA member companies carry over 95 percent of all the passenger and cargo traffic in the United States.

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12/30/1999