Mineta rules out imposing general aviation user fees

Transportation Secretary Norman Mineta on Tuesday ruled out imposition of user fees on private noncommercial air carriers to bolster revenues for the Aviation Trust Fund.

At a House Transportation-Treasury Appropriations Subcommittee hearing on his agency's budget, Mineta tried to squelch widespread reports in the airline industry that the Federal Aviation Administration was about to propose user fees to supplement fuel taxes and commercial ticket taxes as a way of financing the trust fund. The fund finances airport improvements and other operations.

When asked by Rep. Todd Tiahrt, R-Kan., "Are you considering user fees?" Mineta replied, "No." Manufacturers and operators of small aircraft vigorously oppose any user taxes, saying costs of financing airport activities would shift from commercial airlines to general aviation.

The Office of Management and Budget is weighing proposals that will be submitted to Congress for a new stream of financing for the FAA. "There is a general consensus that our growing aviation system needs a more stable and predictable revenue stream," Mineta said, referring to ticket taxes now generating most of the FAA funding.

Mineta said when people "talk about user fees, they don't know what they are talking about." There are no user fee proposals before OMB, he insisted. Mineta took also issue with reports that his department was to propose changes allowing foreign ownership of U.S. airlines.

Foreigners now are prohibited by law from owning more than 49 percent of domestic airlines and a maximum of 25 percent of control. Mineta said a proposed rule would not change existing statutes against foreign ownership but he said ailing domestic airlines needed new sources of funding and suggested a form of stock ownership that would preclude airline control.

On the current labor negotiations between the National Air Traffic Controllers Association and the FAA, Transportation-Treasury Appropriations Subcommittee Chairman Joe Knollenberg, R-Mich., opposed proposals to turn over decision-making to a third, nongovernmental party if there is an impasse.

"If an impasse is reached, I firmly believe that Congress must retain its ability to consider the different proposals," Knollenberg said. "Congress should not abdicate its responsibilities to the American taxpayer and the flying public by ceding, to an outside entity, decision-making authority that appropriately belongs right here," he said. "It is irresponsible."