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New House FAA Extension Introduced with EAS Reforms

July 15, 2011

WASHINGTON, D.C. -- Today the twenty-first extension of Federal Aviation Administration (FAA) programs was introduced in the House by Transportation & Infrastructure Committee Chairman John L. Mica (R-FL), Aviation Subcommittee Chairman Tom Petri (R-WI), and Ways & Means Committee Chairman Dave Camp (R-MI). It has been over 7 ½ years since the last FAA reauthorization was signed into law.

“It is unfortunate that we have been put in this position, again, by the current Senate leadership who refuse to negotiate in the best interest of the American public,” Mica said. “When Democrats controlled the House and Senate, Congress also failed to act, and unfortunately Democrat tactics have not changed. Our nation’s aviation system cannot operate effectively under the Senate’s ongoing political gamesmanship.”

Mica continued, “House and Senate negotiations on the FAA bill have resulted in significant progress over the last several months. However, it is time for the Senate to put the safety of the traveling public above their own political posturing and paybacks to the labor movement. Clearly, some in the Senate have made a political decision to put special interest labor provisions above the safety of our nation’s aviation system.”

“The Essential Air Service provisions included in the extension are limited reforms that target the most indefensible of the subsidies,” Petri said. “We in Congress are trying to find a way forward on addressing our deficit and long-term debt issues, but if we can’t put an end to these extravagant subsidies, then we will never be able to rein in spending where really hard decisions are necessary. How can we justify subsidies of over $1,000 per passenger, or subsidies for communities that are located less than 90 miles from a hub airport? Should we be asked to pay, in essence, $10 per mile in one particular case for someone to avoid driving 82 miles to an airport? This is, in fact, some limited common sense reform to end the most extreme of the EAS subsidies.”

This 21st extension, H.R. 2553, maintains current funding levels for the FAA, its employees, and airports across the country through September 16, 2011. The extension also includes a common sense Essential Air Service (EAS) reform provision, which the Senate passed unanimously during Floor consideration earlier this year. This provision, which was section 420 in the Senate’s FAA bill, would limit EAS eligibility to communities that are located 90 or more miles from a large or medium hub airport. It also includes a waiver should the Secretary of Transportation determine that geographic characteristics result in undue difficulty accessing the nearest medium or large hub. This modest reform, already approved by the Senate this year, would eliminate 10 EAS communities located within 90 miles of a medium or large hub airport, resulting in $12.5 million in annual savings.

The extension also includes a pro-taxpayer cap on the EAS passenger subsidy provided by the federal government. Setting the subsidy cap at $1,000 per passenger eliminates three additional communities from the EAS program and saves an additional $4.1 million on an annual basis. The current per passenger subsidy rates for these three airports are: Ely, Nevada, $3,720; Alamogordo/Holloman AFB, New Mexico, $1,563; and Glendive, Montana, $1,358.

“Given the intransigence of the Senate, their inability to move any piece of substantive legislation, and their unwillingness to compromise, we are compelled to seek rational and modest reform in this extension,” Mica added. “We hope they will pass this extension and come to the table with a renewed sense of purpose for ensuring the safety of our aviation system and passing a long-term FAA reauthorization.”

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