Bill Carey

A new Reason Foundation study argues that U.S. passenger airports could support themselves and fund capacity improvements with user fees and long-term financing, eliminating the need for government grants from the Airport Improvement Program (AIP). The study by the libertarian research organization also proposes spinning off the FAA’s Air Traffic Organization (ATO) into a separate federal entity that charges users for ATC services.


The study, titled “Funding Important Transportation Infrastructure in a Fiscally Constrained Environment,” aims to promote solutions that would distance the U.S. transportation system from ongoing budget and debt-limit crises in Congress, according to the foundation. “If you look at our outdated air traffic control system or our aging Interstate highways, you’ll see Congress has long struggled to provide reliable funding streams for infrastructure projects,” study author Robert Poole said in a release. “Fortunately, there are numerous practical changes we can implement to rebuild and reinvigorate our infrastructure within the current economic climate.”


A 2011 survey by Airports Council International-North America estimated that annual capital investment needs at U.S. airports total $16 billion for runways, taxiways, terminals and other projects through 2015. AIP grants, generated by passenger ticket taxes, fuel taxes and other fees, account for just 22 percent of airports’ capital funding sources, the Reason study notes. Revenue bonds backed by airport operating revenues, including local passenger facility charges (PFCs), now federally capped at $4.50 per enplaned passenger, provide more than half of capital funding.


The AIP also “cross subsidizes” airports, according to the Reason study. Larger, hub airports that host 70 percent of passengers receive just 17 percent of AIP grants; the balance gets distributed among smaller hubs, non-hubs and general aviation airports. “Rather than battling with general aviation interests over how to split up the AIP pie, a better solution would be to liberate passenger airports from AIP altogether, allowing them to self-fund via PFCs and all their other user-derived revenue sources without a federal limit,” states the study.


The idea of recasting the ATC system as a self-supporting operation dates back to at least 1985, the study notes. It recommends separating the ATO from the FAA and making it a user-funded entity, analogous to the air navigation service providers of Canada, Australia, the UK and other countries. The new entity could issue long-term revenue bonds to finance the technology and facility improvements needed for the NextGen ATC modernization effort, expected to cost the government and airspace users $50 billion.


&nbsp;


&nbsp;


&nbsp;

News, issues, personnel, equipment and developments about air traffic management.

Study: U.S. Airports, ATC System Should Be Self Supporting

2024 Corporate Aviation Leadership Summit

Kerry Lynch

News and issues relating to international air transport and cargo carriers, national airlines and regional airlines, including aircraft, engines, personnel, acquisitions, accidents, safety, security and training.

News and issues relating to business, corporate and private aviation, primarily regarding turbine-engine-powered airplanes and helicopters. Subjects include aircraft, engines, maintenance, operations, personnel, acquisitions, accidents, safety, security, and training.

FAA has issued a request for information on potential modernization integrator

DOT Meets with Stakeholders To Map Out Modernization

Curt Epstein

New developments at airports including regulations and noise issues; legal disputes; openings, acquisitions and mergers.

News and issues relating to the aerospace industry that are related to the science, engineering and business of flight in space involving civil, industrial and military applications, and similar topics related to flight in the atmosphere of the Earth that are not covered more directly by other AINonline subject channels. In other words, both astronautical and aeronautical subjects, except for those aeronautical topics that are specifically covered elsewhere on this website.

The project wrapped two weeks early after 24/7 effort

Conclusion of KEWR Runway Rehab Could Ease Traffic Woes

Charles Alcock

News about environmental issues relating to aircraft operations, including noise issues, emissisions, and regulations. See Fuel for biofuel.

Aircraft operators will be charged a new fee to support the work

Redesign of UK Airspace Will Start with London Airports

News about bills, laws, regulations and other governmental decisions affecting aviation and aerospace. Topics include FAA re-authorizations, taxes on fuel and aviation activities, environmental legislation, ICAO decisions, governmental mediation of labor conflicts and World Trade Organization disputes and decisions.

Bolen said system needs addition $18.5 billion over three years

ATC Modernization Becomes Urgent Focus of FAA Reauthorization

Amy Wilder

News and information on safety procedures and concerns.

Predictive engine designed to support tower situational awareness

NoamAI Launches Artificial Intelligence ATC Assistant

Hanneke Weitering

News and issues relating to civil and military unmanned aircraft systems (UAS), unmanned aerial vehicles (UAVs) and remotely piloted aircraft systems (RPAS) of all kinds and sizes, including those used for intelligence, surveillance and reconnaissance (ISR), combat (unmanned combat air vehicles, or UCAVs), law enforcement, research and other applications. Of particular focus is the FAA's planned integration of UAS into the U.S. national airspace system.

More In ATC

DOT Meets with Stakeholders To Map Out Modernization

FAA has issued a request for information on potential modernization integrator

Conclusion of KEWR Runway Rehab Could Ease Traffic Woes

The project wrapped two weeks early after 24/7 effort

Redesign of UK Airspace Will Start with London Airports

Aircraft operators will be charged a new fee to support the work

ATC Modernization Becomes Urgent Focus of FAA Reauthorization

Bolen said system needs addition $18.5 billion over three years

NoamAI Launches Artificial Intelligence ATC Assistant

Predictive engine designed to support tower situational awareness

EASA Certifies First U-space ATM Service Provider For Uncrewed Aircraft

Anra Technologies is ready to launch U-space services across Europe

FAA: Newark ATC Failures Prompt Controller Trauma Leave

Agency reiterates need for tech upgrades after Newark failures

New FAA-NATCA Deal Adds Bonuses To Bolster ATC Ranks

NATCA calls new pact “a meaningful step” toward solving controller shortage

AIN Products

SUBSCRIPTIONS

RESOURCES

ABOUT AIN