Dramatic victories by Republicans in this week’s federal elections not
only alter the power structure in Congress. They’ll dramatically affect
negotiations going forward on several issues of interest to the airport
industry, most notably FAA reauthorization.
Turnover in Congress, particularly the defeat of Rep. James Oberstar,
D-Minn., likely will eliminate some barriers standing in the way of
passing a reauthorization bill, says Robert Poole, director of
transportation studies with the Reason Foundation.
For instance, in this year’s House version of the reauthorization,
Oberstar included a provision that would permit FedEx Corp. drivers to
organize under provisions of the National Labor Relations Act, which
allows local union organization. Competitor United Parcel Service Inc.
is governed by that law.
FedEx is currently governed under the Railway Act, which requires
national elections. The company opposes Oberstar’s proposed change. With
Republicans in power, Oberstar’s provision will probably be struck from
future versions of the bill, Poole says.
But in this case easier does not necessarily mean better for airports.
Oberstar’s defeat also eliminates one of the staunchest supporters of
increasing the passenger facility charge, which airports use to fund
capital projects. It’s been capped at $4.50. The House bill, co-written
by Oberstar, who chairs the House transportation and infrastructure
committee until his term ends in January, had proposed increasing the
limit to $7.
There had been rumors the Senate was considering allowing a $1 increase
during negotiations earlier this year, but nothing definitive was ever
passed. The Senate reauthorization proposals in recent years have fallen
more in line with views expressed by the airline industry, which sees
raising the PFC as a tax increase.
“The knee jerk position of a lot of no-tax increase Republicans is going
to be to fall for the misleading line peddled by the airlines,” Poole
says. “I’ve written many times that it’s not, that it’s an example of
local self-help that free market conservatives should be in favor of.”
The industry is currently operating under the 16th short-term extension of the existing legislation, which expired in 2007.
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