NADO.org » Aviation

Final FAA Reauthorization Deal Modifies Essential Air Service

NADO Admin — Mon, 06 Feb 2012 16:27:47 +0000

After more than four years of extensions and delays, Congress reached a final agreement this week on a four-year reauthorization for Federal Aviation Administration (FAA) programs. The House-Senate conference report (H.R. 658, H. Rpt. 112-381) authorizes $15.8 billion annually for federal aviation programs through FY2015.

The future of the Essential Air Service (EAS) program was among the most contentious issues between House and Senate leaders. The final agreement includes a compromise on funding and policy reforms for the rural-focused program. While the deal calls for annual reductions in discretionary spending for the program, dropping from $142 million in FY2012 to $93 million by FY2015, these discretionary funding cutbacks will be backfilled by an increase in mandatory funds. As a result, the EAS program will receive $199 million each year in FY2013 through FY2015. The increase in mandatory funding will be generated by an increase in the overflight fee charged on foreign airliners using U.S. airspace but not landing in the country.

House and Senate leaders also adopted additional EAS reforms. The deal preserves the program yet eliminates airports that see fewer than 10 passenger flights per day, with exceptions for airports in Hawaii and Alaska and those located more than 175 driving miles from large or medium hubs. (The U.S. DOT Secretary may also grant waivers). In addition, the compromise prevents new communities from entering the EAS program and limits the program to those communities participating in the program in FY2011.

The Airport Improvement Program (AIP), which is the primary FAA program for local airport improvements, is reduced from $3.5 billion to $3.35 billion per year. This program has been essentially level funded for the past six years and will be held at $3.35 billion for the next four years. In addition, the Small Community Air Service Program is authorized at $6 million per year, level with FY2012 appropriations.

Other highlights include:

Compromise language on a National Mediation Board (NMB) ruling that may have made it easier for labor unions to organize airlines under the Railway Labor Act. Under the agreement, the NMB ruling would remain, but the legislation would raise the percentage of eligible bargaining-unit members needed to petition for a new union election from 35 percent to 50 percent.
Authorized eight additional round trip long-distance flights at Ronald Reagan Washington National Airport.

The full House approved the FAA conference agreement on February 3 while the Senate is expected to clear the measure for the President’s signature the week of February 6.

Surface Transportation and Aviation Programs Extended

Deborah Cox — Tue, 20 Sep 2011 16:49:00 +0000

On September 13, the U.S. House of Representatives passed a combined extension of surface transportation programs and aviation programs. H.R. 2887 provides for a six month extension of highway programs (until March 31, 2012) and a four and a half month extension of aviation programs (until January 31, 2012). The latest extension of highway programs was set to expire on September 30 and the latest extension of aviation programs was set to expire at midnight on September 16.

On September 15, the measure passed the Senate, clearing the bill for the President. Opposition by Sen. Tom Coburn (R-OK) almost prevented the bill from passing, which would have resulted in a FAA shutdown. Sen. Coburn objected to the transportation enhancements program in the bill and offered an amendment that would remove a mandate that states must spend some of their highway money on enhancements such as walking and bike paths. Sen. Coburn eventually conceded, saying he was assured that the next multi-year highway bill will include his language allowing states to opt out of the mandate. Sen. Rand Paul’s (R-KY) amendment to the measure to lower Highway Trust Fund spending levels was rejected.

These latest extensions will give authorizers additional time needed to continue to work through differences on the long term authorizations for these programs.

President Obama Announces the American Jobs Act

Deborah Cox — Fri, 09 Sep 2011 17:16:00 +0000

On September 8, before a Joint Session of Congress, President Obama outlined his new plan to create jobs and boost the economy. In his proposal, The American Jobs Act, the President calls for greater investment in the nation’s infrastructure and makes the case for the development of a National Infrastructure Bank. The plan, estimated to cost $447 billion, includes $60 billion in new transportation infrastructure spending including:

$27 billion for highways
$9 billion for mass transit
$4 billion for high-speed rail corridors
$2 billion for other intercity passenger rail
$5 billion for TIGER and TIFIA grant/loan assistance
$2 billion for airport improvement grants
$1 billion for FAA NextGen air traffic control

The President also asked Congress to approve an extension of unemployment insurance, payroll tax cuts, hiring incentives, and greater funding for public schools, high-speed wireless access, and a new “Project Rebuild” targeted at putting people to work rehabilitating homes, businesses and communities. The proposal also includes $5 billion to prevent and reverse layoffs of emergency first-responders and $5 billion to modernize community colleges.

More information on the President’s jobs bill is available on the White House website. To view a White House fact sheet on the proposal, click here.