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Extra $276M sought in Senate FAA bill
FAA legislation being debated in the Senate looks to provide
approximately $276 million in additional funds to modernize the U.S.
air-traffic system by upping taxes on several areas within the airline
industry.
It also slaps private business jet charters with an increase on gas taxes, from 4.4 cents per gallon to 36 cents, as well as a 14-cent surtax on fuel, according to documents released by the Senate. The provision is expected to raise $107 million through 2014.
Charter airlines like the beleaguered NetJets will likely absorb this
tax increase. The company is owned by Berkshire Hathaway and caters to
high-end travelers by offering them fractional ownership in private
plans. The airline is loaded with debt, but is expanding, according to
Fortune magazine. An increased gas tax will only add challenges to
bringing the company back into the black.
The bill includes a provision for aircraft weighing 6,000 pounds to pay
into the Airport and Airway Trust Fund. These planes were originally
exempt. Now, only sightseeing planes are exempt. The provision is
expected to raise $56 million over ten years.
The Senate could complete action on the bill this week.
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