Air Transport World

You fly, you buy!(proposed airline user-fee to replace 10% ticket tax)

User fees are good. Head taxes are bad. Just ask the CEOs of the seven largest U.S. airlines, who have thrown their support behind a user-fee-based proposal to fund FAA, part of the comprehensive reform of the agency now being considered by Congress.

If incorporated into a still-undefined FAA reform law, the user-fee proposal would replace the 10% excise tax that expired at the end of last year. That tax had been the major source of revenue for the Aviation Trust Fund.

In a letter to Congress, the seven CEOs state that the expired 10% ticket tax was an inequitable and ineffective means of providing a stable funding source for FAA.

"Let us be quite clear. We support paying for our full, fair share of FAA's costs," the letter assures. …

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