The U.S. Senate last week overwhelmingly approved an FAA reauthorization bill that would provide $34.6B in funding over two years: the House Transportation & Infrastructure Committee’s version would provide $59.7B for four years. The Senate bill provides for a more aggressive commitment to the Next Generation Air Transportation System, although both bills address the need for moving to the satellite-based system.
The Senate bill would make $4.1B available to the Airport Improvement Program, and the House version cuts funding to $3.1B. The bills have similar FAA funding levels: $9.6B in the Senate bill compared to $9.4B in the House bill, although that figure in the House bill would fall to $9.2B in 2012. House Transportation and Infrastructure Committee Chairman John Mica (R-Fla.) called it a “lean bill that recognizes our current budgetary difficulties and the need to do more with less.”
Noting the higher level of funding in the Senate bill, Airports Council International-North America President Greg Principato said: “When it comes to the Airport Improvement Program, the Senate got it right. Airports are pleased that the Senate FAA reauthorization bill recognizes the importance of investing in airport infrastructure which ensures passenger safety, security and airfield maintenance.”
In a big blow to airports, neither bill provides for an increase in the cap on passenger facility charges. The airport industry has lobbied heavily for a boost to $7, but both bills keep the cap at the current $4.50. The Senate bill, however, includes a pilot program that would allow up to six airports to have unlimited increases in passenger facility charges provided they collect the charge themselves, rather than the airlines. The House bill proposes a pilot PFC program specifically to fund an intermodal ground access project. The bill also directs the Government Accountability Office to study alternative methods for collection of PFCs, which are currently included in ticket prices.
Both bills address the current limits on flights at Ronald Reagan Washington National (DCA), according to published reports. The Senate bill would increase the number of daily round-trip flights between and the western U.S. to 28, from 12 daily flights currently, and would increase the number of airlines operating flights at DCA. Which western airports would be involved remains a sticking point. The House version calls for five additional flights. The current law allows 12 flights beyond a perimeter that splits the U.S. into eastern and western segments.
Airports operating under the Essential Air Service Program are vulnerable under both bills. The House bill would phase out the program by 2013 in all states except Alaska and Hawaii, which the bill estimates will save approximately $400M over four years. The Senate version of the bill would keep the program intact but eliminate funds to airports located within 90 miles from a larger commercial airport.
There are likely to be myriad changes as discussions converge in the House and Senate. Current FAA funding expires March 31.
