Trouble ahead over small plane fees

"AJ" wrote:
Essentially, the National Air Transportation Association representing
the airlines is seeking about $2 billion a year in federal tax relief.
To accomplish that, NATA wants general aviation - all aircraft except
commercial airliners and military - to take up the slack. That would
reduce the 7.5 percent "user fees" airline passengers pay.

To compensate for that, an unprecedented user fee would be slapped on
general aviation. Such fees would be in lieu of a 21.9-cent per gallon
federal excise tax on jet fuel and the 19.4-cent federal tax on
aviation gas presently paid at the pump when general aviation planes
refuel.

Does anyone have information on what this "user fee" is going to be based
on? A fixed price on per-aircraft-year (e.g. $10,000/year per aircraft,
whether it's a Boeing 747 or Cessna 172, irrespective of time in the air),
per-aircraft-mile, per-aircraft-seat-year, per-aircraft-seat-mile-year, or
what?

Gross weight is what Canada uses.

"AJ" wrote in news:1144704355.085254.309920
@e56g2000cwe.googlegroups.com:

From the Cushing (OK) Daily Citizen:

Trouble ahead over small plane fees
By Randall Turk
THE NORMAN TRANSCRIPT (NORMAN, Okla.)

NORMAN, Okla. - A political dogfight is looming over Washington, D.C.
skies this summer as a financially troubled airline industry attempts
to shift some of its financial burden to smaller aircraft.

Essentially, the National Air Transportation Association representing
the airlines is seeking about $2 billion a year in federal tax relief.
To accomplish that, NATA wants general aviation - all aircraft except
commercial airliners and military - to take up the slack. That would
reduce the 7.5 percent "user fees" airline passengers pay.

I only needed to get this far to go "HUH?!?!"

The airlines don't know how to run their business. So instead of
changing their business model, or passing the costs on to their
customers, they want the gov't to stick it to a third party?

As Penn & Teller would say....BULL****!

Think about it. Say I have a business selling crayons. I can't make
my company solvent. So what do I do? Beg the government to tax
those who use pencils and give me the money! What the airlines
propose is just as ludicrous.

Snipola of rest

Brian
--
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Skywise wrote:

I only needed to get this far to go "HUH?!?!"

The airlines don't know how to run their business. So instead of
changing their business model, or passing the costs on to their
customers, they want the gov't to stick it to a third party?

As Penn & Teller would say....BULL****!

And if the unsuspecting public actually believes that airline ticket prices
will immediately drop 7.5% the day this tax goes away, they are wise to
send their toy list to Santa Clause.

--
Peter

On 10 Apr 2006 14:25:55 -0700, "AJ" wrote in
.com::

Essentially, the National Air Transportation Association representing
the airlines is seeking about $2 billion a year in federal tax relief.
To accomplish that, NATA wants general aviation - all aircraft except
commercial airliners and military - to take up the slack. That would
reduce the 7.5 percent "user fees" airline passengers pay.

The airlines and FAA are embarking on a divide and conquer mission.
Once the proposed precedent is established, it's going to be easier
for the government to move to a fee based ATC system for all flights.

If the airline passengers are paying the 7.5% ticket tax, please
explain how shifting that tax to GA is going to provide financial
relief to the airline industry. The airlines only collect the tax;
they don't pay it; the passengers do.

Will a 7.5% decrease in ticket prices make US airlines more
competitive globally? Domestically? Doubtful. And There is no doubt
shifting airline passengers' responsibility for ATC services and
airport improvements on to GA will have a large, and inequitable,
negative impact on GA.

"Larry Dighera" wrote in message
...
On 10 Apr 2006 14:25:55 -0700, "AJ" wrote in
.com::

Essentially, the National Air Transportation Association representing
the airlines is seeking about $2 billion a year in federal tax relief.
To accomplish that, NATA wants general aviation - all aircraft except
commercial airliners and military - to take up the slack. That would
reduce the 7.5 percent "user fees" airline passengers pay.

The airlines and FAA are embarking on a divide and conquer mission.
Once the proposed precedent is established, it's going to be easier
for the government to move to a fee based ATC system for all flights.

If the airline passengers are paying the 7.5% ticket tax, please
explain how shifting that tax to GA is going to provide financial
relief to the airline industry. The airlines only collect the tax;
they don't pay it; the passengers do.

Will a 7.5% decrease in ticket prices make US airlines more
competitive globally? Domestically? Doubtful. And There is no doubt
shifting airline passengers' responsibility for ATC services and
airport improvements on to GA will have a large, and inequitable,
negative impact on GA.

There is the problem the 7.5% ticket tax. A movement costs the same whatever
the price of the ticket so the tax should be a flat rate charge. Then the
tax is not as ticket price dependent just dependent on their being a ticket.

Then you get the situation we have in the UK where I can buy a ticket from
Luton to Paris for $10 and the taxes come to $25. If I booked late and the
ticket price was $30 the taxes are still $25. If I bought the last ticket on
the plane and the ticket was now $200 the tax is still $25.

cb

The discussion is really moot anyway, as the battle has been fought and
decided. Now, all will have to wait for the outcome.

Prediction: Nonbusiness GA continues to pay only the gas tax (maybe it
goes up), but grant cuts to GA airports result in new or increased
landing, tie-down fees. Hangar lease rates, etc. go up.

Nothing dire for GA.