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Tourism, Arts Panel Tackles America's Air System, Raising Aviation Investment

By Tom McClimon and Ron Thaniel
February 2, 2009


Tourism, Arts Panel Tackles America's Air System, Raising Aviation Investment

By Tom McClimon and Ron Thaniel

In preparation for the pending Congressional reauthorization of the Federal Aviation Administration, U.S. Conference of Mayors Tourism, Arts, Parks, Entertainment and Sports Chair Honolulu Mayor Mufi Hannemann and Transportation and Communications Chair Denver Mayor John Hickenlooper led a special discussion on modernizing America's air system during the January 17 committee meeting of the Tourism, Arts, Parks, Entertainment and Sports.

Introducing Hickenlooper and Beth Osborne, Legislative Assistant to U.S. Senator Thomas R. Carper (DE), Hannemann told the mayors that, "While dependence on oil, and uncertain fuel prices, have exacerbated the troubles of the industry, longer term issues such as an aging fleet, a 1950s navigational system, insufficient research and development in alternative fuels and engines that consume less fuel, and the elimination of routes are factors contributing to an industry once regarded for their superior service.

"Today, U.S. airlines are increasingly associated with aging fleets, poor service, lost baggage, flight delays and fewer routes," said Hannemann.

Hickenlooper pointed out that the debate on the next FAA bill would provide an opportunity to address issues facing cities and their metro areas struggling to cope with the volatility in the U.S. airline industry.

Summarizing the Conference's FAA reauthorization recommendations, Hickenlooper said, "The health of the airline industry has immediate and considerable effects upon cities and their metro areas throughout the United States."

"Furthermore, the volatility in the industry will continue to worsen without important reforms and modernization to the system," said Hickenlooper. The Conference's FAA reauthorization principles include the following:

  • Fully fund a new air traffic control system, such as Next Gen, which would convert the nation's radar-based aviation tracking system to a satellite based one.

  • Reduce the aviation industry's dependence on oil and reduce carbon emissions per passenger mile (air .48kg, car .35kg, rail .21kg) by providing resources to finance research and development of alternative fuels and engines that consume less fuel.

  • Take steps to inoculate our nation's metropolitan areas from financial woes of the airline industry - for example preservation of existing routes and flight levels.

  • Raise the maximum Passenger Facility Charge (PFC) cap to $7.50 per flight, and index this increase to inflation and authorize at least $3.8 billion in Airport Improvement Program (AIP) funding, with an increase of $100 million each year thereafter.

  • Ensure that the successor aviation legislation increases flexibility and streamlines planning processes to encourage a more systemwide intermodal approach to transportation planning and development in order to deliver more integrated air and rail networks, whereby many short-range flights are replaced by rail.

  • Fully fund the Essential Air Service (EAS) and Universal Service program.

    Assessing the outlook for passage this year, Osborne said, "Chances are not particularly good." She told the mayors that after the stimulus, it would be much harder to push for an aviation bill. In a post stimulus environment, Congress will turn its attention to the Omnibus from last year, the new budget, appropriations, perhaps revisiting the Troubled Assets Relief Program (TARP), and health care. At best an aviation bill will be next year. "A long-term authorization is needed. The stimulus is not a planning bill or a policy bill," she added.

    Regarding the economy and its impact on the airline industry, she noted that with the price of fuel as high as it was in 2008, the airlines changed their business model so much so that "when the economy went down, they were prepared."

    Responding to suggestions from a number of legislators for some form of industry reregulation, Osborne told the mayors that she does not expect to see a new regulatory model.

    In other comments, Osborne provided her thoughts on a FAA authorization that is intermodal in its approach, stating we cannot have "separate aviation, surface and rail authorizations. The structure moves trains, planes, and autos - not people."

    She also urged support for "one trust fund where money will go out based on performance needs."

    In closing, Hannemann noted that, "A new regulatory model may or may not be the right fix, but certainly, federal policymakers must do more to ensure that communities are inoculated against the financial woes of the industry.

    2009 Junior World Football Championship and Working with Culinary Businesses

    Canton (OH) Mayor William J. Healy II briefed the mayors on the upcoming Junior World Championship Football Game to be hosted in his city from June 27 to July 5. Sponsored by the International Federation of American Football and USA Football, this tournament will be played by the world's best high-school aged football players (19 and under) from eight national teams.

    "We are happy to be hosting this Junior World Championship," stated Healy. We encourage your community to nominate players to participate." Team USA will compete among a field of eight countries spanning four continents. All 50 State High School Athletic Associations and the District of Columbia are invited to nominate at least ten players to compose a talent pool from which Team USA's coaching staff with select its roster. Additional information on how your city can participate can be found on the International Federation of American Football website: ifaf.info.

    Hannemann also brought to the Committee members' attention his interest in the Committee discussing in the future ways mayors and local culinary businesses work together.

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