April 16, 2024

Itineraries: Plan to Raise Fees for Air Travelers Sets Off Debate

If the higher fees are adopted, travelers may demand more scrutiny of how the government is spending the nearly $2 billion it already collects each year through these fees, and may ask whether the growing budget for screeners and X-ray scanners can be better managed.

Passengers currently pay a $2.50 security fee for each segment of a trip, up to a maximum of $10 for a round-trip ticket. In its deficit reduction plan released last week, the administration proposed raising the fee initially to $5 for a one-way trip and then increasing the fee by 50 cents a year from 2013 to 2017, ultimately adding up to a $15 security charge on a round-trip airline ticket.

About $15 billion of the additional revenue collected over a decade would go toward deficit reduction. But the administration said another reason for the increase was to raise to 75 percent the portion of aviation security paid for by airlines and their passengers, rather than less than half the budget as has been the case for years.

Dana Hyde, associate director for general government programs at the Office of Management and Budget, said that when Congress created the Transportation Security Administration in 2001, the intention was to recover the agency’s costs through the passenger security fee and a separate security tax paid by the airlines. The original fee has not risen since then even as security costs have grown. As a result, taxpayers have been forced to cover the difference.

With its proposal, the administration aims to shift that balance to a more user-financed system.

“This is increasing the cost to the user, but actually decreasing the cost to the taxpayer,” Ms. Hyde said.

But the airlines and other travel industry groups announced almost immediately that they planned to fight the proposed fee increase, as they have done successfully every time it has been suggested in recent years.

“No other mode of transportation bears the cost of security like the aviation industry and its passengers,” said Steve Lott, spokesman for the Air Transport Association, an airline trade group. “Security should be a federal function, and it should be funded as such.”

The airlines also oppose a provision in the administration’s proposal that would impose a new $100 per flight fee on commercial carriers and private planes, which would go to the Federal Aviation Administration for air traffic services.

That would increase the amount commercial airlines and general aviation operators already pay for air traffic control, but not address the fact that private planes contribute far less for arguably the same service of guiding an aircraft safely through the airspace.

If Congress passes either proposal, travelers are likely to end up paying the bill.

Given the financial struggles the airlines have experienced during the last decade, Mr. Lott said, any tax increase would have to be offset by service cuts or higher fares. He suggested that increased security fees might also result in a demand for more controls on spending.

“The amount of money that the industry and its passengers have paid to fund security has soared 50 percent since 2002,” Mr. Lott said. “Congress has a responsibility to scrutinize how the money is being spent.”

Robert Poole, director of transportation policy at the Reason Foundation, a research group in Washington, has studied how aviation security is financed in other countries, and said he believed that shifting toward a system where users paid more was fair.

“It’s less bad for the aviation community and passengers to pay for these taxes than the general population,” he said, noting that Canada and, increasingly, countries in Europe follow this model.

Although he said he did not support using $15 billion in revenue from the security fee to reduce the deficit, as the administration has proposed, he expected that shifting the cost burden would have an important effect: creating a more vocal constituency to rein in what he described as “wasteful T.S.A. spending.”

Article source: http://feeds.nytimes.com/click.phdo?i=adae5cdbe8f6f1c1268658c90ac96eaa

F.A.A. Faces a Shutdown After Talks Fall Apart

WASHINGTON (AP) — Efforts to avert a shutdown of the Federal Aviation Administration failed on Friday amid a disagreement over a $16.5 million cut in subsidies to 13 rural communities, meaning that at midnight nearly 4,000 people were to be temporarily out of work and federal airline ticket taxes suspended.

Lawmakers were unable to resolve a partisan dispute over an extension of the agency’s operating authority, which was to expire at midnight Friday.

The subsidy cut was included by Republicans in a House bill extending operating authority for the F.A.A., which has a $16 billion budget. Senate Democrats refused to accept the House bill with the cuts, and Republican senators refused to accept a Democratic bill without them. Lawmakers then adjourned for the weekend.

Underlying the dispute on rural air service subsidies was a standoff between the Republican-controlled House and the Democratic-controlled Senate over a provision in long-term funding legislation that would make it more difficult for airline and railroad workers to unionize.

Obama administration officials have said the shutdown will not affect air safety. Air traffic controllers will remain on the job. But airlines will lose the authority to collect about $200 million a week in ticket taxes that go into a trust fund for F.A.A. programs.

F.A.A. employees whose jobs are paid for with trust fund money will be furloughed, including nearly 1,000 workers at the agency’s headquarters in Washington, 647 workers at the F.A.A.’s technology and research center in Atlantic City and 124 workers at the agency’s training center in Oklahoma City.

Airline passengers could save money on their airfares, but the situation is complicated. Federal taxes on a $300 round-trip ticket are about $61, according to the Air Transport Association.

Airlines, alerted earlier this week that F.A.A. authority could expire, have been making adjustments to their computer systems and Web sites so that at midnight, taxes were to be no longer added to airfares, the association said.

One airline, US Airways, was already raising fares. Other airlines may try to reap a windfall profit from the tax holiday.

Passengers who bought their tickets before the shutdown, but who travel during the shutdown, may be due a refund, said Sandra Salstrom, a Treasury Department spokeswoman. That is because it is not clear whether the government can keep taxes for travel that takes place during a period when the government does not have authority to collect taxes, she said.

Article source: http://feeds.nytimes.com/click.phdo?i=c4a711c7ee5b95dfe3dc1a90c5cb3b19