May 16, 2008

What's at Issue
The U.S. Senate reached a compromise on Federal Aviation Administration (FAA) Reauthorization legislation that included no new user fees; and while it appeared that the Senate version of FAA reauthorization was on its way to final passage, S. 1300, was pulled from the Senate floor and put on indefinite hold due to non-aviation amendments that were added to the bill.

Why It's Important
The Senate Committee on Commerce, Science and Transportation and Committee on Finance reached an agreement that would raise $260 million for the FAA to devote to modernizing the air traffic control system by moving from a ground-based to a satellite-based system. This funding will be raised by increasing the excise tax on jet fuel from 21.8 cents to 36 cents per gallon. In addition, the compromise eliminates a $25 per flight surcharge that NATA and other general aviation groups strongly opposed and also eliminates the onerous fuel fraud provision that was contained in the 2005 Highway Bill. This proposal allows general aviation to pay more into the trust fund, maintaining the trust fund's stability and reliability, without implementing a bureaucratic and complex system of user fees.

What to Do
Contact your Senators to encourage them to complete FAA reauthorization legislation before the extended deadline, June 30, 2008.

NATA has drafted a form letter for you to personalize and send to your Senators. To access the letter, visit NATA's new Legislative Action Center, which also includes contact information for each of your Senators. Simply fill in your ZIP code where prompted under the "Find Your Legislators" box, select your Senator, and edit the letter as you would like before sending it.

NATA Position
NATA is very supportive of the Senate Committee on Commerce, Science and Transportation and Committee on Finance agreement increasing the excise tax on jet fuel from 21.8 cents to 36 cents per gallon, instead of imposing a $25 per flight surcharge or "user fee," which NATA and other general aviation groups strongly opposed. In addition, NATA supports the U.S. House of Representatives Committee on Transportation and Infrastructure bill, H.R. 2881, as well as the recommendations made to the Committee on Ways and Means to leave the current funding structure intact.

Status
The current FAA authorization, including the existing excise and fuel taxes, expires on June 30, 2008.

Staff Contact:

Kristen Moore
Director, Legislative Affairs
NATA
kmoore@nata.aero

For general press inquiries, contact Shannon Chambers at 703-298-1347 or schambers@nata.aero. 

The National Air Transportation Association (NATA) has been the voice of aviation business for more than 80 years. Representing nearly 3,700 aviation businesses, NATA’s member companies provide a broad range of services to general aviation, the airlines and the military and NATA serves as the public policy group representing the interests of aviation businesses before Congress and the federal agencies.