Privatization Issues | |
Privatization of the Federal Aviation Administration |
Taxes on airline tickets and general aviation fuel could be abolished, according
to a new report, if the Federal Aviation Administration's air traffic control
(ATC) system were privatized. In addition, the new system could improve
air safety, reduce flight delays and reduce operating costs.
The report recommends funding ATC by a new system of fees on commercial
aircraft, set by a nonprofit corporation owned and managed by the system's
users -- airlines, airports and general aviation.
A new not-for-profit ATC corporation could be created modeled after Nav
Canada -- an entity that will take over Canadian ATC this summer. Unlike
the Clinton Administration's failed proposal for a government corporation,
Nav Canada's board is selected by aviation users -- not appointed by politicians.
The U.S. ATC corporation would develop a new fee structure to replace the
landing fees and ticket taxes that are collected to fund ATC. Actually,
the FAA relies on annual appropriations from congress, while the dedicated
trust fund is spent like general revenues.
At least 15 other countries use weight-based terminal charges and weight-distance
based charges to fund most or all of their ATC operations. If such fees
were applied only to commercial-type aircraft, private aircraft could be
exempted from most charges.
Source: Robert W. Poole Jr. and Viggo Butler, "Reinventing Air Traffic
Control: A New Blueprint for a Better System," May 1996, Policy Study
No. 206, Reason Foundation, 3415 Sepulveda Blvd., Suite 400, Los Angeles,
CA 90034, (310) 391-2245.
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