 |
New York,
NY
Senate "User Fees" sparks debate;
Blue Star Jets weighs in on CNBC
(How to foot
the bill for modernizing the nation's aviation system?)
This week, CNBC rallied Todd Rome, President of Blue Star Jets, and
James May, President of the Air Transportation Association, to comment
on the growing concerns over a Senate Bill that proposes a "user
fee" for private jets. The bill is designed to fund the modernization
of the nation's aviation system.
Advocates of the bill justify taxing private jets by claiming every
type of aircraft impose an equal amount of economic stress on the system
- one plane taking off and landing requires the same work as another.
Todd Rome explains; "Suggesting that all aircraft inflict the same
stress on our aviation system, is inaccurate. A jumbo jet landing in
Newark is not the same as a small turboprop landing in Walla-Walla,
Washington; financially or environmentally. Imposing new taxes on smaller
craft has already been proven harmful to small aircraft operators outside
the US."
The bill also proposes to double gas taxes for general aviation; from
.21 cents to .49 cents per gallon, while eliminating the gas tax to
commercial aviation altogether. Critics see this tax would bring tremendous
burden to rural areas and small towns who are reliant on general aircraft
- likely injuring their ability to fly.
Blue Star Jets' views are closely aligned with The National Business
Aviation Association's (NBAA):
- An enormous amount of
data shows that the FAA's costs are mainly driven by the airlines'
expensive, congested "hub-and-spoke" airport network - not
private aviation.
- New "user fees" would require replacement of the ultra-efficient
fuel-tax system with a huge, new expensive bureaucracy of billing
agents, collection agents, auditors, dispute arbitrators and others,
creating an administrative burden.
- "User fees" are subject to manipulation and can be raised
when industry can afford it least. In 2002, when air traffic was depressed
as a result of the recession and terrorist attacks, Canada raised
its user fees to cover its declining revenues.
-"User fees" would be the first step to privatization of
the aviation system, stripping the role of Congress in preserving
all aviation interests, including those of general aviation.
####
|
