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…came out this week, and the bizav groups aren’t happy. The Institute for Policy Studies (www.ips-dc.org) and its sister group Essential Action in a joint report on private jet travel and general aviation essentially charge that the American public is subsidizing business aviation and the fat cats that access it. Problem is, when they painted this picture they didn’t use a full palette of colors.

The IPS study takes the Air Transport Association (the airlines) and FAA’s current stance that business aviation needs to pay more for the operation of the air traffic control system. To some extent, the bizav groups have already accepted that notion, agreeing that an increase in the fuel excise tax is appropriate in an era of rising costs and the need to modernize ATC. Comments National Business Aviation Association president Ed Bolen, “This report is 30 pages of nothing but outrageous claims and the warmed-over rhetoric used by the nation’s big airlines. It is unfortunate that at a time when businesses are struggling and communities are losing air service, we see political screed masquerading as a policy report.”

The General Aviation Manufacturers Association, in a press release, adds, “In an effort to speed the modernization of the antiquated ATC system in the U.S., the general aviation industry has expressed to Congress its willingness to pay an even higher fuel tax. This commitment to ‘pony up for modernization’ was made despite the fact that the airlines refuse to pay any more taxes to improve the current ATC system. GA industry support has been nearly universal for the current FAA reauthorization proposal in the House and the Senate that would increase general aviation’s contribution by over 36 percent, or an additional $290 million, while the airlines will contribute no additional new money.”

The IPS study also charges that business aviation is a major polluter, offering the analogy that one bizjet trip eats as much fuel as one American does annually driving a car. IPS would also like to see heavy taxation of the industry, money to be used for airport infrastructure and mass transit.

Where the wheel comes off this axle for me is two-fold. One, IPS calls for a luxury tax on general aviation aircraft. Apparently, their study of history skipped over the luxury tax idea of some 20 years ago – a move that almost single-handedly destroyed non-airline aircraft manufacturing in this country. Two is the failure to acknowledge the important role business aviation plays in commerce for smaller communities. The latter is a key determinant in FAA’s ongoing mission of maintaining a system of airports, one not solely focused on commercial carriers.

At a time when our air transportation system is struggling and small communities are losing access to the system via the airlines, over-taxing the one segment that is holding its own seems at best inappropriate.

Thanks for reading. jfi