Sept. nineteen (Bloomberg) -- President Barack Obama's administration proposed a $100 per-flight fee on company jets and alternative turbine-powered planes that use the U.S. air-traffic system.
The fee would raise an estimated $11 billion over ten years, in step with the president's recommendations to the 12-member congressional committee charged with finding ways in which to trim the deficit. The fee is aimed toward non-public aircraft, that currently do not pay their fair proportion of prices of operating the aviation system, the administration said nowadays.
About two-thirds of the air-traffic system is acquired by aviation excise taxes, as well as levies on airline tickets and on fuel. Last year these taxes raised $10.8 billion, in step with the Department of Transportation.
There is a disparity between what airlines and their passengers pay into the system and what users of personal aircraft pay, the arrange said.
An airline flight from la to San Francisco would generate $1,300 to $2,000 in taxes, looking on the amount of passengers and what they acquired tickets. a non-public jet, which needs virtually identical services from air-traffic controllers, would pay concerning $60 in fuel taxes, the arrange said.
"General aviation users currently pay a fuel tax, however this revenue doesn't cowl their fair-share use of air traffic services," the arrange said.
Opposition Mounts
A coalition of 9 U.S. associations representing users and makers of company and personal aircraft issued a joint statement "expressing our unified opposition" to the proposal.
"Mr. President, several foreign countries have imposed per flight charges on general aviation and also the results are devastating," the e-mail statement said. "Please don't go down the damaging path and value jobs in our community."
General-aviation pilots pay their fair proportion of fuel taxes and a replacement fee would produce "a pricey new federal assortment forms," the teams said.
The teams that issued the letter embody the Washington- primarily based General Aviation makers Association, whose members embody General Dynamics Corp.'s Gulfstream and Textron Inc.'s Cessna; the Washington-based National Business Aviation Association, with members as well as PepsiCo Inc. and Humana Inc., the Aircraft homeowners and Pilots Association, primarily based in Frederick, Maryland, that has quite four hundred,000 individual members; and also the Experimental Aircraft Association in Oshkosh, Wisconsin.
NetJets Reacts
Berkshire Hathaway Inc.'s NetJets, the biggest U.S. firm selling fractional shares of company jets, issued an announcement from Chairman and Chief govt Jordan Hansell considering the trade teams. NetJets, primarily based in Columbus, Ohio, has quite seven,000 customers worldwide.
A similar proposal introduced by President George W. Bush's administration was defeated in Congress when opposition by identical teams.
That plan, that was introduced in 2007, was supported by the airline business, that argued that company aircraft homeowners ought to pay a larger share. This time, the Air Transport Association, a Washington, D.C.-based cluster representing airlines as well as Delta Air Lines Inc., has joined the opposition.
"We oppose any new taxes on airlines or their passengers," ATA President Nicholas Calio said during a statement.
The Obama arrange is aimed toward pilots who fly below the supervision of air-traffic controllers.
Nearly all little non-public, piston-powered planes would not need to pay the fee, the proposal said. it'd additionally exempt aircraft operated by the military or alternative government agencies, air ambulances and any flight that does not need air-traffic steering.
--Editors: Bernard Kohn, Andrea Snyder
11 years ago
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