With substantial work left before Congress can arrive at new long-term funding bill for the Federal Aviation Administration, the U.S. House of Representatives on Monday took the nearly inevitable step of approving a four-month extension of the agency’s existing authorization.
The four months, if passed by the Senate and signed by President Obama, would fund the agency through the end of July.
The measure is necessary because proposals introduced by the House and Senate vary greatly in content, with the main hang-up revolving around the plan of Rep. Bill Shuster, R-Pa., who heads the House Transportation and Infrastructure Committee, to privatize air traffic control operations by placing it in the control of a not-for-profit corporation.
The Senate bill does not address ATC.
The bills also differ in length – the House bill would last six years, while the Senate’s would expire in late 2017. The Senate’s bill, as introduced last week, would cap the fees charged by airlines for checked bags, reservations changes and other amenities. Those fees have helped airlines achieve record profits in recent years.
One area of similarity between the House and Senate proposals is that neither would raise the cap on passenger facility charges, fees imposed by airports to help pay for infrastructure projects. The current cap of $4.50 has been in place since 2000. Airport executives and industry trade organizations have argued that PFCs no longer have the same buying power as they did when the cap was initiated 16 years ago.
Airports Council International – North America and the American Association of Airport Executives released a joint statement when the Senate’s bill was introduced last week, calling the increase “essential to future airport development” and reiterating their plan to continue fighting for an increase in the PFC until they are officially out of time.
“It is unfortunate the Senate bill fails to include a long overdue adjustment to the local Passenger Facility Charge user fee, which would help airports finance essential safety, security and capacity projects,” the statement reads. “The modest proposed increase in federal investment for airport infrastructure is welcomed, but today’s legislation is a missed opportunity to make progress in promoting airline competition and getting Washington out of the way of local airport investment decisions by modernizing the local PFC user fee. Because airports are drivers of economic growth for local communities, significant airport investment should be as much a priority for our elected officials as it is for the passengers we serve every day.”
Before a final reauthorization plan is completed, the House and Senate must negotiate their different bills into a single version that will then be voted on by each chamber. If the bill passes, it will be sent to the president for his signature.
