FAA safety cuts unfair to passengers

Despite paying more in taxes to fund the FAA’s air traffic control system than most consumers pay for sin taxes, the FAA has cut back passenger-facing operational funding that will result in control

Despite paying more in taxes to fund the FAA’s air traffic control system than most consumers pay for sin taxes, the FAA has cut back passenger-facing operational funding that will result in control towers being closed, delays at the major airports and a ripple effect that will be felt at airports across the nation.

Department of Transportation Secretary Ray LaHood and Federal Aviation Administration (FAA) Administrator Michael Huerta announced that a five percent budget cut because of sequestration would mean the furloughing of thousands of air traffic controllers and disruptions of the travel plans of millions of the flying public.

“Shame on the FAA for slamming passengers with safety slashing and delay causing cuts to the air traffic control system,” said Charlie Leocha, Director, Consumer Travel Alliance. “This is an unnecessary cut of services for which passengers pay each and every time they fly — we are not getting what we are paying for.”

Specifically, here are the user fees passengers pay:

7.5 percent Excise Tax

9/11 Security Fee = $2.50 per flight number to a maximum of $5 per one-way or $10 per roundtrip

Federal Segment Fee = $3.90 per takeoff or landing (maximum of $15.60)

Passenger Facility Charges (PFCs) = up to $18

When traveling internationally, we have to pay additional user fees to take off and land, to have our passports checked and our luggage inspected for customs.

International Departure Tax = $17.20

International Arrival Tax = $17.20

Immigration user fee = $7

Customs user fee = $5.50

U.S. Animal and Plant Health Inspection Service fee = $5

Airline industry studies show that passengers are taxed at a higher federal rate than alcohol and tobacco. And, now travelers aren’t getting what they are paying earmarked taxes and fees for.

• Since 1990, the number of aviation taxes/fees has increased from six to 17; the total amount of taxes paid by the industry has grown from $3.7 billion to $17 billion over the same period.

• The tax burden on a typical $300 round-trip ticket has nearly tripled since 1972, rising from $22 (7 percent) to $61 (20 percent).

• Annually, airlines and their customers contribute $10 billion to $12 billion to the Airport and Airway Trust Fund; general aviation contributes about $200 million.

• Airlines and their customers already incur $3.4B-$3.8B per year in federally imposed security taxes/fees.

• Plus, the FAA’s budget has increased more than 100 percent over the last 15 years.

House Committee on Transportation and Infrastructure Chairman Bill Shuster (R-PA) noted:

There are $2.7 billion in non-personnel Operations costs that should be examined before FAA personnel are furloughed.

Finding five percent in savings shouldn’t need to significantly impact our nation’s aviation operations. Businesses and families across the country face these issues in their budgets every day without massive impacts. We know that the FAA has the flexibility to reduce costs elsewhere, such as contracts, travel, supplies, and consultants, or to apply furloughs in a manner that better protects the most critical air traffic control facilities. Yet rather than take this approach, the Administration has made choices that appear designed to have the greatest possible impact on the traveling public.

Leocha urges the FAA to take another look at their cuts. “At least keep New York City, Los Angeles and Chicago airspace fully staffed, he notes. “When delays show up in those regions, the domino effect is dramatic across the country according to study after study.”

About the author

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Linda Hohnholz

Editor in chief for eTurboNews based in the eTN HQ.

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