December 4, 2009 - Aviation and Airport Development Updates

A summary review of Aviation and Airport Development related news and information that was made public during the past week.  Trisha Ton-Nu also contributed to this post. If you would like to receive this update in an e-mail delivered to your inbox every Wednesday, please send an e-mail to subscribe@calairlaw.com with the word “subscribe” in the subject line.

$3.3M Airport Project in Works. --- Stillwater News Press, November 24, 2009
Stillwater Regional Airport in Oklahoma was approved for a $3.3 million taxiway and apron project that may be built in mid-2011. Five percent of the project will be funded by the state and Stillwater City Council, while federal money will account for the remaining 95 percent. The improvement plan will stall however until Congress approves a budget for the Federal Aviation Administration; Congress has passed a resolution providing temporary funding while it reviews and approves the FAA’s budget.
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FAA Fines Airlines for Stranding. --- United Press International, Inc., November 24, 2009
Federal Aviation Administration regulators fined three airlines $175,000 for an August incident where passengers were stranded overnight in a plane in Rochester, Minnesota. Department of Transportation Secretary Ray LaHood expressed his hope that the FAA’s investigation and resulting fine would serve as a signal to the rest of the airline industry that the DOT is expecting airlines to respect air travelers’ rights. The penalty is the first of its kind for the FAA, involving passengers left on the tarmac for an unreasonable period.
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Rockefeller Eyes FAA Extension. --- Adrian Schofield, Aviation Week, November 25, 2009
Commerce Committee Chairman Jay Rockefeller is proposing extending the Federal Aviation Administration’s operating authority through the end of March 2010. The seventh and current extension expires December 31, and it is likely that Congress would need even another extension into the summer. Airport groups will likely be frustrated as they have been pushing for the reauthorization bill to be passed this year, though it is unlikely airlines will be upset since they oppose some significant elements of the House bill.
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Aviation Industry Seeks Stimulus Money to Cut Delays at the Airport. --- Jim Snyder, The Hill, November 26, 2009
Commercial airlines and the private and business aviation industry have joined together to ask Congress to add money for a new air traffic control system in a second stimulus. The two lobbies agree that the NextGen system of satellite-based radar would reduce flight delays and help meet the growing demand for flight travel, but have been divided over how to pay for it.
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Jet Contrails Alter Average Daily Temperature Range. --- Science Daily via Jonathan Guillou, November 28, 2009
A study conducted during the three days after September 11, 20001, when the Federal Aviation Administration grounded commercial aircraft in the U.S., found that jet exhaust contrails affected average daily temperature ranges. Contrails form when water vapor and particles from jet engine exhaust enter the atmosphere, but not all jet exhausts create contrails, especially in warmer areas. Without the contrails from September 11-14, 2001, the daytime temperature was slightly higher and the nighttime temperature slightly lower, creating an increased range between the lowest and highest temperatures. Contrails alter temperature the way natural high clouds do, with the layer of ice crystals shielding the ground from some of the sun’s energy during the day, and preventing some of the Earth’s heat from dissipating into the vaccum at night.
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Wayward Pilots Were “Distracted,” Transcripts Show. --- Matthew Wald, New York Times, November 27, 2009
Transcripts from the October Northwest Flight 188 incident involving a Northwest Airlines plane that overshot its destination and was out of radio contact for over an hour reveal that the pilots were distracted. The transcripts and audio files were released Friday, November 27, 2009 by the Federal Aviation Administration, but the National Transportation Safety Board, which is also investigating, may release the transcript or a summary of it later this year. The FAA classified the incident as a “pilot deviation” and revoked the licenses of the two pilots, who are appealing.
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Report: FAA Accused of “Gross Mismanagement” at Newark Airport. --- David Porter, Associated Press, November 28, 2009
The Office of Special Counsel, a federal agency that handles whistle-blower complaints, has accused the Federal Aviation Administration of endangering public safety by not changing landing procedures at Newark International Airport in New Jersey. An air traffic controller filed a complaint last year describing safety issues with planes landing on intersecting runways at the airport. The report was filed last month and the FAA said it would make changes to the landing procedures by October 26, and later reported that it had done so when it hadn’t. The Office of Special Counsel sent a letter November 19 to White House counsel Gregory Craig reporting the FAA’s gross mismanagement.
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Coyotes Pose an Obstacle at North Carolina Airport. --- McClatchy Newspapers, November 27, 2009
Airport officials at Raleigh-Durham International Airport in North Carolina have noted a recent increase in the number of coyotes crossing the paths of taxiing airplanes and are looking to address the problem. Airport workers and federal wildlife managers usually try to scare coyotes off with cap guns or bottle rockets, but the airport is working on a larger wildlife management plan for the Federal Aviation Administration to review. The proposal recommends improving fencing and keeping grasses trimmed low to manage coyotes and other wildlife on the property.
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Edward Stimpson, Aviation Advocate, Dies at 75. --- John Miller, Associated Press, November 26, 2009
Edward Stimpson, an aviation advocate who pushed to rejuvenate struggling small aircraft manufacturers in the 1990s, died Wednesday, November 25, 2009 from complications related to lung cancer. He was a major proponent of legislation signed by President Bill Clinton in 1994 to prevent general aviation companies from being named as defendants in lawsuits in crashes of small planes 18 years old or older. He also advocated against record flying attempts and was a chairman of the “Be A Pilot” education and research program aimed at increasing the number of people learning to fly.
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Airports Push for Increased Facility Charge. --- Carl Unger, Smarter Travel, November 30, 2009
U.S. airports would like to see the current passenger facility charge (PFC) of $4.50 increased to $7.50 per segment, a 66 percent increase. The fees go toward updating runways, gates, and terminal facilities, but airports say they need higher fees to keep up with the rising costs of these improvements. Airlines oppose the proposed raise, saying that it would impose an additional and unwarranted $2-billion-per-year tax increase on commercial passengers. 
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Other articles on this topic:

Airports Want Passenger Fee Charge Increased. --- Roger Yu, USA Today, November 30, 2009
Airports have been lobbying Congress to raise the cap on passenger facility charges (PFCs) that fliers pay as part of their airline tickets, to index them to the inflationary cost of construction. Airlines oppose the increase, but airports have raised more than $27.5 billion since Congress approved the facility charge in 1992. John Meenan of the airline association says airports have too often used the money for projects they shouldn’t that the Federal Aviation Administration has been lax in approving.
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Regulators Reject Boeing 777 Safety Warnings. --- Andy Pasztor, Wall Street Journal, November 30, 2009
Federal Aviation Administration regulators have decided to allow more than 60 Boeing Co. 777 jetliners to continue flying long-distance international trips through early 2011 despite safety warnings from crash investigators and pilots. The jetliners have suspect parts that have caused engines in extremely rare instances to ice up and shut down in midair.
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Mending Fences: FAA Proposes Guidance on Through-The-Fence Operations. --- Mike France, National Air Transport Association, November 30, 2009
The Federal Aviation Administration released a proposed guidance document on through-the-fence (TTF) operations at federally obligated airports that has generated some controversy. A TTF agreement is an agreement entered into by an airport sponsor that would allow access to airport facilities by aircraft based on property adjacent to, but not owned by, the airport. The FAA’s proposed strict prohibition on TTF access for residential uses may create situations where airports’ sponsors are forced to use extraordinary measures to cancel existing TTF agreements. The National Air Transport Association is hoping to work with the FAA to ensure that existing agreements are structured in a way that honors their original intent without placing airports in danger of violating grant assurances.
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FAA Bans Takeoff with “Polished Frost.” --- Aubrey Cohen, Seattle Post-Intelligencer, November 30, 2009
The Federal Aviation Administration announced a new law which will take effect January 30 banning takeoffs with “polished frost” on the wings, stabilizers, and control surfaces of several classes of aircraft. Major and regional air carriers are already prohibited from operating with polished frost, but the new rule will affect 57 operators flying 188 aircraft.
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Other articles on this topic:

FAA Press Release: FAA Bans Takeoffs with “Polished Frost.” ---Federal Aviation Administration, November 30, 2009
The Federal Aviation Administration’s new rules, effective January 30, 2010, will prohibit takeoffs with “polished frost,” for several classes of aircraft. Frost can affect wings aerodynamics and control surfaces, and the new rules include four alternatives to removing frost that operators may consider.
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Plume of Pollutants From a Small Airport. --- Henry Fountain, New York Times, November 30, 2009
A study of the air around Santa Monica Airport by researchers at the University of California, Los Angeles found high concentrations of ultrafine particles of organic carbon and sooty black carbon that extended in a plume more than 2,000 feet downwind of the airport—longer than those typically found around highways in daytime. Dr. Paulson, one of the researchers, said that epidemiological studies have shown the health risks associated with these kinds of emissions by vehicles, but that there has not been similar analyses done around airports. Air quality around airports has not been studied much and when it has, the focus has usually been on larger airports.
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FAA Clarifies What Can Be Stowed in Seat Back. --- Joe Sharkey, New York Times, November 30, 2009
New Federal Aviation Administration guidelines clarify formerly confusing policies on whether passengers may put personal items in airplane seat-back pockets. In a recent FAA clarification notice sent to airlines, the notice stated that airline seat pockets are designed to safely hold about three pounds of weight and small, lightweight items can be placed in the pocket without exceeding its total designed weight limitation or blocking anyone from safely evacuating the row of seats. The status quo has allowed for items of reasonable size to be placed in the seat-back pocket, but airlines were being told different things by regional FAA inspectors, perhaps prompting the need for the clarification.
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FAA Asked to Do More to Fix Morale. --- Sholnn Freeman, Washington Post, December 1, 2009
A Government Accountability Office report released Monday, November 30, 2009 called on the Federal Aviation Administration to step up its efforts to promote diversity and do more to counter low morale by broadening its training programs. The GAO said the FAA’s morale and culture problems could obstruct its ability to attract and retain tech-savvy workers, critical as the need for workers will grow as the FAA moves to more advanced equipment and faces a wave of retirements.
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Other articles on this topic:

GAO Report: Mica Attacks Controllers as Cause For Morale Problems at FAA. --- The Potomac Current and Undertow, December 1, 2009
After the recently released Government Accountability Office report on poor Federal Aviation Administration morale, Representative John Mica attacked air-traffic controllers as the cause of the problems. He also said that conditions would be unlikely to improve under a “controversial labor contract” that unfairly benefited only one group of FAA employees.
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User Fees Continue To Be A Sticking Point To FAA Reauthorization

There were two events this past Thursday, May 7, 2009, that may affect H.R. 915, the FAA Reauthorization bill, which is currently pending in the U.S. House of Representatives. First, in the Obama Administration’s budget stated in its budget that starting in 2011, the budget “assumes a scenario where most of the air traffic control system would be paid for by direct charges levied on users of the system. The FAA’s current excise tax system, which generated $12.4 billion in 2008, is largely based on taxes that depend upon the price of customers’ airline tickets, not FAA’s cost for moving flights through the system.“ Then, the House Ways and Means Committee held a hearing on the financial status of the Airport and Airway Trust Fund. At that hearing, Rep. James Oberstar (D.-Minn.), Chairman of the House Committee on Transportation and Infrastructure told Ways and Means that “changes to the current system of excise taxes should be made only if such changes will improve upon [excise taxes’] record of stability, revenue adequacy, and ease of administration.”

Obama Administration Seems to Favor User Taxes

The Obama Administration has been fairly clear about its preference for user taxes to fund the air traffic control system in the United States. The budget framework that the Obama Administration issued in February indicated that it would like to transition some aviation taxes to user fees. Indeed, it was this indication of the Administration’s preference for user fees that caused the Congress to approve another continuing resolution for the FAA instead of passing the 2009 FAA Reauthorization. See, "User Fees Issues Probably Will Force Short-Term Extension of FAA's Authorization Instead of Full Reauthorization" posted March 16, 2009. While the budget released this past week ruled out user fees for fiscal year 2010, the administration indicated that “the FAA should move toward a model whereby FAA’s funding is related to its costs, the financing burden is distributed more equitably, and funds are used to pay directly for services the users need.” But the Budget stopped short of endorsing user fees. It continued: “the Administration recognizes that there are alternative ways to achieve these objectives. Accordingly, the Administration will work with stakeholders and the Congress to enact legislation that moves toward such a system.”

User fees are not only on the White House’s wish list. The Department of Transportation confirmed that the longer-range reauthorization plan for the FAA will include “cost-based user charges for air traffic services starting in 2011.” Although, DOT added that the specifics “are under development and some time will be needed to implement the charges once approved.” The Congressional Budget Office seemed to support a move away from excise taxes, too, although indirectly. Robert A. Sunshine, Deputy Director, Congressional Budget Office stated that “the current financing system provides limited incentives to air carriers and general aviation flyers to use the system efficiently in congested areas – but structured differently, by linking the taxes paid by users of the system to the cost of providing air traffic control services, the financing system could help to reduce the potential for increasing congestion and delays.”

Strong Support in Congress for Current System

The House Ways and Means Committee took up H.R. 915, the FAA Reauthorization bill of 2009, to consider the financing provisions. H.R. 915 has been approved by the Transportation and Infrastructure Committee, but the financial provisions need to be approved by Ways and Means before it can go to the full House. Rep. Charles Rangel (D.-N.Y.), Chairman of the Ways and Means Committee stated that the Committee intends “to act on this matter so that we can avoid the need for yet another temporary measure.” All of the witnesses stressed the need to move the legislation along. Rep. Oberstar commented that “we are already almost two years behind schedule in reauthorizing these programs. Airport development capital projects and key NextGen programs need the stability that a multi-year authorization bill provides.” FAA programs can be funded by aviation excise taxes, a reasonable General Fund contribution and a modest increase in General Aviation fuel taxes: an increase from 21.8 cents per gallon to 35.9 cents per gallon for noncommercial jet fuel, and an increase from 19.3 cents per gallon to 21.4 cents per gallon for avgas.   This increase is identical to legislation reported by Ways and Means in 2007 and was passed by the House on September 20, 2007.

The proposed raises in the fuel taxes and other funding mechanisms were the results of years of negotiating, with industry expressing support for the increases in return for the promise of no user fees. Rep. Jerry Costello (D.- Ill.), Chairman of the Aviation Subcommittee indicated that the proposed increase in fuel taxes has the support of the General Aviation groups over the imposition of a user fee system. It is the support of the General Aviation groups that seems to be issue here. As Rep. Tom Petri (R. – Wis.), Ranking Member on the Aviation Subcommittee told the Ways and Means Committee, he continues to support the structure of the funding recommendations which were developed in a bipartisan fashion, adding that “General Aviation is strong in the United States compared to other countries and unique. Of all the world’s licensed and active aviation pilots, 62 percent reside here in the U.S.”

Result: Excise Taxes, At Least For Now

Since the leadership of both parties on Transportation and Infrastructure Committee support continuation of the excise taxes, it seems unlikely that H.R. 915 will be amended to include user fees, even in 2011. The feeling among all involved is that the FAA reauthorization needs to be accomplished now and now is not the time for a discussion about the viability of user fees over excise fees. However, fiscal year 2011 is another story. Once Capt. Randy Babbitt has been confirmed as FAA Administrator, excise taxes and user fees can be examined a little more closely.

 

Witness List and Written Testimony

Panel 1:

Panel 2: