Statement of Ranking Member Nydia Velázquez before Committee hearing on FAA Regulation of the General Aviation Industry

Statement

of the

Honorable Nydia Velázquez

Ranking Member

House Committee on Small Business

Hearing on FAA Regulations Affecting the General Aviation Industry

February 5, 2014

The U.S. economy is both vibrant and complex, resulting in an ecosystem of businesses, suppliers, and consumers crisscrossing the nation.  For small businessmen and women, this may mean traveling at a moment’s notice -- sometimes to towns not served regularly by commercial airlines.  As a result, general aviation – and the flexibility it provides – plays a key role in our nation’s economy.  In fact, general aviation directly generates more than $20 billion annually and has an overall economic impact of nearly $80 billion, employing nearly half a million workers.  This contribution will no doubt grow as the economy continues to recover.

Essential to this sector’s success is ensuring the safety of its pilots, passengers, and those who live near airports.  According to the National Transportation Safety Board, there were 1,471 general aviation accidents in 2012, with 432 fatalities. Conversely, U.S. commercial airline operations were fatality free. Pursuing policies that improve safety are necessary, but they must be data-driven and examined so that they do not do create excessive burdens for the industry and the workers that they employ.

With this goal in mind, the FAA is undertaking several non-regulatory efforts to reduce general aviation accident fatalities by 10 percent. This strategy emphasizes training and outreach, while focusing resources on the highest risk activities of general aviation.  During today’s hearing, I am particularly interested in learning whether these efforts are producing meaningful change within the industry.

On the regulatory front, several issues before the FAA could affect safety.  This includes a petition by industry groups to exempt pilots from the third-class medical certificate.  While it appears that safety data is available for the FAA to make a decision, they have not responded, causing frustration to many of those in the room today. 

In addition, aircraft certification remains a flashpoint for the agency. Not unlike other areas of the government, the FAA has reported that it has a backlog of more than 1,000 certificate applications, which are required for repair stations, flight schools, and charter operations. Of that backlog, over a 130 have been waiting for more than 3 years.  At least one has been delayed more than 7 years.  These delays prevent new businesses from opening and existing enterprises from expanding.

All of these issues have one thing in common -- they are largely dependent on the FAA’s budget.  For FY 2014, the FAA received $12.4 billion, $168 million less than the year before.  And sequestration and budget politics have made aviation a “hot potato” lurching from crisis to crisis.

In April of last year, air traffic controller furloughs led to flight delays.  Then, in October, 12,000 FAA employees were furloughed for 16 days.  So, if you are wondering why the FAA hasn’t got back to you or has a large backlog, I think we all know the answer.  The truth is that budget cuts, sequestration, and shutdowns affect all areas of government – and aviation is no exception.

However, with that said, we must try to do what we can to ensure the general aviation industry remains strong in light of these current fiscal challenges.  It plays an important role in the U.S. economy, particularly for areas that lack other transportation infrastructure and is poised to grow stronger over the next 20 years.  Through its presence, it not only creates jobs, but also serves as an economic anchor for many rural communities.  I thank the panel of witnesses for traveling here today and look forward to their testimony. 

I yield back.

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