Tulsa World: Airlines lose votes to small-jet users

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Airlines lose votes to small-jet users

By JOHN HUGHES Bloomberg News Service
Published: 9/22/2007 2:12 AM
Last Modified: 9/22/2007 2:12 AM

U.S. airlines, lobbying Congress to reduce their tax load, lost a vote to the business-jet industry Friday for the second consecutive day.

The Senate Finance Committee rejected an airline-backed proposal to more than double the fuel tax for corporate jet users to 52 cents a gallon. The plan would have cut airline fees the same amount, $248 million, on small-airport flights.

"All this amendment will do is allow the airlines to increase their profits," said Sen. Pat Roberts, R-Kan., where Textron Inc.'s Cessna builds small planes. The panel rejected the plan on a voice vote.

Carriers such as AMR Corp.'s American Airlines are lined up against small-jet users such as General Motors Corp. and small-jet makers including General Dynamics Corp. Sen. Ken Salazar, D-Colo., called it the "battle of the titans."

Small-plane users also won Thursday when the House approved a Federal Aviation Administration budget bill that rejected airline-backed user fees. The levies were supposed to ease the airline burden for funding air-traffic control while boosting costs for small-plane users.

Friday, the Senate panel handed small-plane users another victory when it approved its version of the FAA bill. Those users require 16 percent of FAA services and pay 3 percent of costs, said Sen. Jay Rockefeller, D-W.Va.

The Senate plan will increase small-plane users' burden to only 4.5 percent, Rockefeller said. "I don't think that's fair."

Rockefeller was resisted by senators such as Charles Grassley, R-Iowa, whose state lacks a major airline hub. More than doubling small-jet fuel taxes would be "outrageous," he said. "This is going to bring about rural destruction."

Instead, the panel opted to have both industries pay for a $400 million annual increase in the FAA's budget. Small-plane users would pay $280 million through steps such as a fuel-tax increase to 36 cents a gallon from the current 21.8 cents.

Airlines would pay the rest through measures such as an increase in the international passenger arrival and departure tax to $16.65 from $15.10.

The fight isn't over. Rockefeller said he won't agree to let the FAA bill reach the Senate floor until "a more equitable" funding system is worked out.

By JOHN HUGHES Bloomberg News Service

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	Report Comment Robert Gschwind North Carolina, (9/22/2007 6:59:54 AM) FAA operating and development monies come from the general fund. Taxes on fuel and services do not totally fund FAA or its systems. The FAA's own accountung office and inspector general have said that current means of funding are more than sufficient to bring the new traffic control system on line. The airlines have been subsidized by the government and have reaped the highest profits since 9/11 yet scream that general aviation and business aviation don't pay their fair share. The new increases in fuel tax will go a long way in funding. Just for general information, not everyone who operates a small aircraft is rich. Many people own aircraft that cost $20,000 or less and are over 50 years old. Many fly in uncontrolled airspace and never use FAA services. Look a where Senator Rockafeller is from (the bridge and road to no where, another atomic clock that wasn't needed) and his ties to big business. Follow the money my friends and then tell me what is Fair.
	Report Comment Hope Gramlich, Coconut Creek, Fl (9/22/2007 11:13:31 AM) I cannot say THANK YOU enough to Congressman Hastings and his staff for getting Section 822 added to the FAA Reauthorization Bill added to save the lives and the businesses of South Florida, by stopping the consolidation of PBIA to MIA For those congress members that voted against it Mack, Mario Diaz Balart, Feeney, John Mica, and Weldon I hope the people of Florida do the honors of letting you know just how much their lives are worth. Seems you think they are worth $0.00 . I just hope that the President of the United States cares more about South Florida than his brother did and allows this to become a law. I have the former Governor’s letter and the present governors departments letters and how this administration feels about this subject posted on my website just do a search on Mission To Save South Florida . You can see what they really think about south Florida. If it does not become a law I still have an on going investigation with the Inspector General’s Office of the DOT in Washington. By trying to consolidate PBIA to MIA the FAA was breaking the Homeland Security Act of 2002, Presidential Directives 7 & 8, and the NIPP of 2006. I will not give up till I know the people and businesses are safe here in South Florida.
	Report Comment Jack Miller, Clemmons, NC (9/22/2007 3:17:51 PM) Grassley is once again willing to play power politics for his own good and not the good of the American people. We currently spend billions to subsidize corn farmers. Grassley is willing to fund another huge health care entitlement, a Cuban style health program for middle class children, if that will help him win benefits for the corporate jet lobby. Once again, through out fairness and subsidize those who are willing to send in buckets of campaign dollars.

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