SFGate: Airline Ticket Tax Could Disappear

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Tuesday, February 13, 2007 (AP)
Airline Ticket Tax Could Disappear
By LESLIE MILLER, Associated Press Writer


   (02-13) 18:42 PST WASHINGTON (AP) --

   The Bush administration's long-awaited plan to pay for a new, high-tech
air traffic control system would eliminate the passenger ticket tax but
raise other costs for people who fly.

   The Federal Aviation Administration will unveil its proposal Wednesday.
The announcement will touch off a fierce debate between airlines, which
support the concept, and owners of corporate jets and private aircraft,
who will pay more to fly in the national air space.

   FAA Administrator Marion Blakey, who outlined the plan in recent budget
briefings, says the aging air traffic control system urgently needs
replacing to avoid gridlock in the sky.

   The World War II-era radar-and-radio system is becoming obsolete as new
digital technology provides pilots with satellite signals to aid in aerial
navigation.

   The FAA hasn't said exactly how much it expects a modernized system to
cost.

   But Blakey has said the current way of paying for air traffic control
— the 7.5 percent passenger ticket tax — won't generate the
billions of dollars needed.

   The ticket tax is inadequate partly because of the growth of low-cost
carriers such as Southwest Airlines and partly because the average
airplane has gotten smaller and carries fewer passengers, the FAA says. It
costs the FAA as much to direct a small airplane as it does to move a
jumbo jet.

   Hence, the FAA is asking Congress to let it collect fees that reflect the
actual cost of flying.

   Though the passenger ticket tax would be eliminated, another ticket tax
that pays for airport improvements — called passenger facility
charges — would go up.

   The fuel tax for corporate and private aircraft would more than triple.

   Airlines, led by the Air Transport Association, have lobbied hard for the
government to shift more of the cost of the air traffic control system to
corporate jets.

   "The ATA recognizes the need for air traffic control modernization and a
funding mechanism that takes into account the cost of using the system,"
said ATA spokesman David Castelveter.

   The association says airlines pay for 93.7 percent of the air traffic
control system, but use only 68.1 percent of it. Corporate, recreational
and military aircraft use the remaining 31.9 percent.

   To illustrate the burden corporate aircraft place on the system, the ATA
notes that at 10 a.m. on the day after the Super Bowl, corporate jets
departing South Florida outnumbered commercial airliners by at least three
to one.

   Ed Bolen, president of the National Business Aviation Association, says
that's like standing outside of a church on Easter Sunday and claiming
it's a normal service.

   Bolen says it's the hub-and-spoke system created by large airlines that
burdens the system. "When you put 50 airplanes in a single airport in 30
minutes, that drives the cost," Bolen said.

   "We've got a system in the U.S. that's the largest, safest, most efficie=
nt
in the world," he said. "It's been funded through user taxes for 40 years,
it's worked. We don't need to set up a new bureaucracy."

   Some elements of the plan include:

   _The FAA would get broad discretion to charge a fee based on such factors
as the distance traveled, the size of the plane, time of day and whether
the air space is congested.

   _The fuel tax for private aircraft would rise from 21.9 cents per gallon
to 70 cents per gallon.

   _The FAA could charge new fees for services such as certifying airplane
models and registering aircraft.

   _The FAA could borrow money and issue bonds.

   ___

   On the Net:

   Federal Aviation Administration:

   www.faa.gov ------------------------------------------------------------=
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Copyright 2007 AP

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