US Government could reportedly introduce new taxes on carriers and travellers to help offset an estimated USD25 billion decline in a FAA trust fund over the next six years (MarketWatch, 3-Feb-2011). The revenue contribution to the FAA’s Airport and Airways Trust, which is the FAA’s primary source for funding air traffic control operations, conducting safety inspections and building new runways, has grown just 12% over the past decade. The US Treasury has reportedly had to make up for the shortfall.
US Government may introduce new taxes on carriers and travellers
You may also be interested in the following articles...
CAPA Americas Aviation Summit – navigating uncertainty in the era of Trump and changing tides
Aviation industry leaders and stakeholders will debate the shape of aviation in the Americas in a post Trump world. There is only one event in North America this year offering great insights into new trends and challenges emerging from the new US presidential administration and the churning global aviation markets. This takes place at the annual CAPA Americas Aviation Summit, to be held in Orlando, Florida on 4/5-April-2017.
The next few years for aviation in the Americas are filled with uncertainties, ranging from potential fallout from President Trump’s trade and travel policies to Brexit and the future shape and direction of US-China aviation relations.
“Information is the resolution of uncertainty” - Claude Shannon. Don’t miss this opportunity to gather crucial intelligence necessary for shaping the Americas aviation industry during the next decade.
Highlights from the comprehensive summit include:
AENA: Spain's airport operator must cut charges, but airline yields are already falling
After much delay, in late Jan-2017 the Spanish Council of Ministers approved the airport regulation document setting AENA's airport charges for the next five years. The headline numbers include a 2.2% annual decline in charges from 2017 to 2021, equivalent to an overall cut of 11% through the period.
The legal framework prevents tariff increases before 2025, but the outcome was in contrast with the Spanish airport group's own proposal to freeze charges. Strong traffic growth of 11% to an all time high level of 230 million passengers in 2016 may have influenced the regulator's decision.
In response, AENA has decided to remove an incentive mechanism which rewards airlines for traffic growth with airport charge discounts. The removal of discounts is estimated to offset the 11% reduction by one third.
In fact, this discount scheme has been quite effective in stimulating traffic growth in recent years. However, traffic growth in Spain was also boosted in 2016 by high airline capacity growth switched from other (risk) markets. Airline yield declines are probably noticeably heavier than AENA's regulated price reduction.