Viewpoint: ATA's Calio Calls For Investment

By Nicholas E. Calio, President and CEO, Air Transport Association

With job creation the nation’s No. 1 priority and infrastructure acknowledged as critical to that ambition, our leaders in Washington have the opportunity to unleash the true economic power of commercial aviation.

While improvements to roads and building high-speed rail seem to be getting a lot of air time—and they certainly can advance domestic infrastructure—it is aviation infrastructure that will advance our nation’s stated ambition of doubling our exports in the next five years.

Commercial aviation contributes $1.2 trillion to the economy and supports nearly 11 million jobs. With bipartisan action in the 112th Congress, our industry can do even more to drive business growth and job creation in an increasingly competitive global economy.

As the reauthorization of the Federal Aviation Administration moves forward, Congress must consider investment in a modern air traffic management system in tandem with high-priority airport infrastructure. The two go hand-in-hand. The best runways in the world will be of little value if they are not connected by a fully operational NextGen system with the technology to deliver significant efficiency improvements to our aviation system overall.

The reality is that drivers with GPS systems likely have more sophisticated technology in their cars than pilots have in their planes. The archaic, ground-based air traffic control system in place today is a major drag on the economy, costing the U.S. $31 billion in a single year. Accelerating the implementation of NextGen will significantly reduce flight delays, enhance the productivity of the economy, improve safety and have a positive impact on the environment by reducing fuel consumption and limiting CO2 emissions.

There is consensus on the path forward to implement NextGen. Transportation Secretary Ray LaHood is to be commended for his leadership in forging common ground on many related issues, as also demonstrated in the recommendations of the Future of Aviation Advisory Committee.

We now need to agree on federal funding and move from discussion to implementation.

While making needed investments in infrastructure is essential, strengthening our commercial aviation industry also requires that policy-makers avoid new taxes or fees that will curb business travel and tourism that drive economic growth. Since 1990, the number of taxes levied on the commercial aviation industry has increased from seven to 17. As a result, the tax burden shouldered by airlines and their customers has soared from $3.7 billion to $16 billion a year. Any notion of funding additional airport infrastructure by increasing the passenger facility charge (PFC) would be a big mistake.

The National Taxpayers Union, one of the most respected taxpayer advocacy organizations in the nation, has come out in strong opposition to raising the PFC or imposing any other tax increases on air travel. We hope that lawmakers will listen to their concerns and avoid another pitfall that could again prevent an FAA reauthorization bill from being signed into law.

Reforming the Airport Improvement Program (AIP) offers a more effective response to the airports’ concerns. As currently constructed, the AIP is biased in favor of funding airport projects of little or no value to our commercial aviation system. That needs to be corrected, so that our nation’s most critical airport infrastructure needs are met with AIP dollars, leaving Congress free to apply general fund revenues to secondary airport projects.

As the new president and CEO of the Air Transport Association of America, I am committed to building alliances inside this industry to advance sound policies that will strengthen the nation’s airlines and enable them to better serve their passengers, cargo customers and all of the communities where airports are vital nerve centers of economic activity.

If we work together to bring air travel in America into the 21st century, we can do even more for the economy and the creation of new jobs for the millions of Americans and industries that depend on safe, efficient and reliable transportation of people and goods.

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