New FAA Funding Bill In Play

From The Hill:

Sources familiar with the measure being prepared by staff on a Senate aviation subcommittee chaired by Rockefeller said it would phase out a 4.3 cent per gallon fuel tax paid by commercial airlines. One industry source estimated this could save airlines about $500 million annually.

It would also raise the fuel tax paid by operators of smaller turbine-engine planes from 21 cents per gallon to 49 cents per gallon, and would introduce a new user fee for turbine-powered and turbine-propped aircraft that use the air traffic control system.

Unlike a proposal backed by the FAA, planes that run on piston-fired engines or propellers would not be affected by the new fees or taxes, sources said. The newer bill would also not replace a ticket tax paid by passengers on commercial airlines with the new user fees and taxes, as the FAA-backed bill would have done. Groups representing general aviation were livid with the FAA-backed bill.

Not imposing the user fees and increased fuel taxes on propeller and piston-driven planes would provide cover against arguments that the tax would unfairly hit small planes used for farming and medical care in rural communities or for flight lessons.

Still, one industry source complained that the Senate bill appears to be a “huge giveaway” to commercial airlines, and that it would provide those airlines a tax break at the expense of smaller planes. This source also said general-aviation groups are wary of user fees since those could eventually be imposed on all users of the air traffic control system, and not just jets, and that smaller turbine-powered planes provide necessary services to rural communities.

It seems to me that this is a good compromise. It won’t hurt the private piston aircraft owner and will exempt flight schools and most small commercial operations using piston powered aircraft. It will shift some of the burden of the cost of running the National Airspace System from the airlines to the corporate sector of General Aviation, but that is only fair because bizjets utilize the NAS more than any other sector of GA. It seems fair to me, but I ‘ll bet Donald Trump won’t like it.