FAA Funding Change Challenged

Former US DOT IG Says Current
Taxes Sufficient To Fund FAA

The existing system of airline ticket and fuel taxes, along with current annual levels of general fund support, will provide more than enough money to both fund FAA's existing programs and modernize the air-traffic-control system, according to Kenneth Mead, the former inspector general of the U.S Department of Transportation.

Mead's comments likely will be seized upon by Coingressional opponents of the FAA's proposal (see our blog entry of 6 February) to move toward a user-fee basis for funding various FAA operations, especially air-traffic control. The FAA wants to shift from the present subsidies model of funding to one that would require FAA to act more like a normal business.

Will Users Pay for Air Traffic Services?

FAA Proposes Major Changes
In Taxes & Fees for Air Traffic

The Federal Aviation Administration has proposed a dramatic change in the present system of fees & taxes on civil aviation, in hopes of shifting more of the cost of the FAA's operations on to the users.

" ... under the existing aviation tax structure, ther is no relationship between the taxes paid by users and the air traffic control services renderred by FAA," the agency wrote in a report to Congress.

For more details, see the article dated 6 February 2007 from Reuters:

http://news.airwise.com/story/view/1170749191.html

FAA will flesh out the proposal later this month, presumably with a clearer statement of the actual proposed fees/taxes for the future. RCAA has not reviewed the proposal & has no position on it, per se. However, RCAA in general disfavors subsidies in civil aviation & supports the principle that users should pay a fair price for the services that they receive from public agencies.

The existing legal authority for the taxes & fees that support the FAA's various programs will expire in September 2007. Marian C. Blakey, FAA Administrator, is asking Congree to replace the expiring fees & taxes with a plan that establishes a direct connection between revenue & workload. Thus, the FAA would find itself "acting more like a business".

For federal fiscal year 2008, FAA is requesting $2.7 billion for the Airport Improvement Program (AIP), which is a big source of money for airport expansion, This is the same amount as was requested for FY 2007. The on-line summary of the budget request is unclear as to whether the AIP would continue to be funded as at present.

Quotations above are from the FAA's budget submission to Congress, which may be found as "FY 2008 Budget In Brief" on the FAA's home page:

http://www.faa.gov/about/office_org/headquarters_offices/aba/budgets_brief/media/bib2008.pdf

Sea-Tac Receives Runway Bids

Third-Runway Bids Opened;
Low Bid -- $79,827,080

On 9 January, bids for actual construction of the third runway at Sea-Tac Airport were opened. The lowest of the three bids received was $79,827,080, from Icon Materials, Inc., of Kent. Gary Merlino Construction (a frequent contractor at the Airport) came in at $79,950,465. A third bidder (Tri-State Construction) bid $87,386,164. The Port's engineers had estimated $90,000,000 for the work, whichwill include not just the runway, taxiways still not completed, & the runway safety areas, but also an airfield lighting vault.

The contract has not yet been awarded.

According to the International Laborers' Union, Icon Materials is a unit in the West Division of the Irish-owned Oldcastle group, a subsidiary of CRC Plc, of Dublin, Ireland. In recent years, the firm has won contracts with WSDOT for various highway projects. This appears to be its first bid for Sea-Tac Airport work.

Seattle Port Commission chooses new CEO

Deputy Director at Port of LA Tapped
For Port of Seattle Top Job

News release from Port

FOR IMMEDIATE RELEASE CONTACT: Mick Shultz, 206.728.3091
SEATTLE (Jan. 3, 2007) – The Port of Seattle Commission today selected industry veteran Tay Yoshitani as the Port’s new chief executive officer, replacing Mic Dinsmore, who has announced his resignation.
Yoshitani has led Ports in Oakland and Baltimore and was deputy executive director of the Port of Los Angeles. Born in Japan, he is a graduate of the U.S. Military Academy at West Point and holds a master’s degree in business administration from Harvard University. He received airborne and ranger training in the Army prior to service in Vietnam, and was discharged with the rank of captain. He currently is a consultant and lobbyist in Washington, D.C.

“We are thrilled to have found a candidate with Mr. Yoshitani’s great experience in the complex areas we focus on as a port,” said commission president Patricia Davis. “He has run a seaport and an airport, and has broad experience in real estate development.”
Davis said Yoshitani emerged as the No. 1 candidate in a very competitive selection process.
“Port commissioners John Creighton, Bob Edwards, Alec Fisken and Lloyd Hara and I were unanimous in this selection,” Davis said.
“Mr. Yoshitani will be a real asset to the economic competitiveness of this region,” she said. “He knows the industry and can lead the Port of Seattle as it continues to grow and provide jobs, business opportunity and environmental leadership in our area.”
Yoshitani, who was in Seattle for the commission vote, said he is looking forward to “one of the most interesting jobs in the country. There is a lot going on in all aspects of the Port operations, and working with business and various layers of government is a fascinating challenge beyond that of the private sector.”
“The Port of Seattle has long been a leader in its commitment to international trade and regional economic development,” he said. “Its role in the international trading system is a national asset. I look forward to continuing and building on that success.”
Yoshitani is expected to report for work in March after finishing work on existing contracts on the East Coast. Dinsmore, Port CEO for the past 16 years, will remain through the transition period.
####

Burien Supports More Air Capacity

More Air Capacity -- Yes
But Not at Sea-Tac

As one of its State legislative priorities for 2007, the City of Burien will support efforts to provide additional air capacity in locations other than Sea-Tac Airport, according to the November issue of the City's official newletter, "Burien City News".