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Old July 7th 07, 01:49 PM posted to rec.aviation.piloting
Larry Dighera
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Posts: 3,953
Default The Administrative Cost Of ATC User Fees


The news item below cites International Air Transport Association as
saying that its members pay between $85 and $125 to process one
invoice:

NBAA GIVES THUMBS UP TO HOUSE FAA BILL
(http://www.avweb.com/eletter/archive...ll.html#195540)
The House of Representatives FAA reauthorization legislation
(H.R.2881 ()) has been received with open arms by the National
Business Aviation Association (NBAA), thanks to the bill's support
for ATC modernization without aviation user fees. NBAA President
and CEO Ed Bolen praised House leaders for understanding "that the
aviation system must be modernized to meet capacity demands [and]
that user fees shouldn't be mistaken for a modernization plan." In
previous testimony before Congress, Bolen said user fees are
costly for governments to administer, requiring a large, expensive
bureaucracy. Additionally, NBAA said user fees come with an
administrative burden for operators and cited International Air
Transport Association (IATA) reports that IATA members spend
between $85 and $125 to process one invoice. The association said
user fees can also be increased at any time to make up for
declining revenue.
http://www.avweb.com/eletter/archive...ll.html#195540


http://www.iata.org/whatwedo/finance...al_billing.htm
http://www.iata.org/workgroups/airpo...-standards.htm



But Robert Poole states that ATC user fees could be collected cheaply
as is the current practice for international over flight charges:

http://www.avweb.com/podcast/podcast/195418-1.html
June 18, 2007

Reason Foundation's Robert Poole Makes the Case for User Fees

Robert Poole, Director of Transportation Studies at nonprofit
think-tank Reason Foundation, has long been an advocate of
aviation user fees, as well as a supporter of commercializing the
U.S. air traffic control organization. In an interview with AVweb
Editor-in-Chief Chad Trautvetter, Poole explains why he sees user
fees and a privatized ATC system as good things for airspace
users, despite what the aviation alphabet groups and some
congressional members have been saying lately about user fees.

Note that this is an extra-special double-length podcast, coming
in at 16 minutes.


Is $85 and $125 processing cost per invoice cheaper than the current
cost of processing aviation fuel and ticket taxes?