Who Pays for All This?

Everyone who uses the air transportation system pays taxes to help cover nearly 75% of the costs of developing and running America’s National Airspace System (NAS) and improving and maintaining public-use airports. Included in this group are private and corporate pilots who pay taxes on the aviation gasoline or jet fuel that they purchase for their aircraft; airline passengers who pay a tax on the value of their ticket plus a small segment fee (all the taxes collected by the airlines are paid by the passengers, not the airlines); and people shipping packages who pay a tax on the cost for shipping. These aviation taxes cost the government and the aviation industry very little to collect and are deposited into the Aviation Trust Fund.

In addition to this dedicated fund from all aviation users, about one-quarter of the costs for the air transportation system come from the General Fund. This system of financing the aviation system has been in place for nearly four decades, standing the test of time and providing the important air transportation network that is so vital to our nation.

How the U.S. Aviation System is Paid For

Safe and Efficient Air Transportation System

This proven method for financing America’s aviation system gives the nation the safest and most efficient air traffic control system in the world. The Federal Aviation Administration’s (FAA) U.S. air traffic controllers handle more operations per controller at a lower cost than their counterparts in other parts of the world.

Air Transportation for All Americans

The U.S. Congress – comprised of publicly elected representatives from big cities and small towns throughout America – determines the FAA’s annual budget and oversees the investments in the air transportation system. The air transportation network is vital to our economy and Congress has to decide how to pay for modernizing the air traffic control system and improving airports.

Calls for Change in Control of America’s Air Transportation System

Some have suggested doing this by changing the time-tested, efficient, tax-supported method of financing our nation’s aviation infrastructure with a complex set of air traffic control user fees through a quasi-public or privatized ATC system outside of Congressional control. While user fees are used in many parts of the world, they are highly inefficient to collect and none of these foreign systems begins to compare with the U.S. aviation network which handles nearly 50% of the entire world’s aviation traffic. Why would the U.S. want to take a step backward by charging user fees?

This would effectively turn over this national air transportation resource into the hands of a few entities driven by profits – not your need for air transportation.

Keeping You Connected

We must reject these calls that will leave many communities shutout from air travel. What we need is a truly national air transportation system – serving all Americans.

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The Airport Improvement Program (AIP)

Since 1980, airports have gotten a significant capital development funding boost from the Federal government in the form of grants. These grants have been issued through the Federal Aviation Administration’s Airport Improvement Program (AIP). The AIP provides funds for construction projects, terminal development, safety equipment, snow removal equipment, weather reporting systems, and many other important projects.

The broad objective of the AIP is to assist in the development of a nationwide system of public-use airports adequate to meet the current projected growth of civil aviation. The AIP provides funding for airport planning and development projects at airports included in the National Plan of Integrated Airport Systems (NPIAS).

The highest aviation priority of the United States is the safe and secure operation of the airport and airway system. Therefore, in the administration of the AIP, the FAA gives the highest priority to projects that enhance the safety and security of our airport system.

Other key priorities include maintaining the current airport infrastructure, increasing the capacity of facilities to accommodate growing passenger and cargo traffic volumes, ensuring continued funding availability to the small general aviation and non-hub commercial service airports, developing reliever airports; developing cargo hub airports; reducing flight delays; converting former military air bases to civil use; and implementing a variety of other provisions to ensure a safe and efficient airport system.

The AIP provides funds for a wide range of projects throughout America. Atlanta’s Hartsfield International Airport constructed taxiways and rehabilitated existing taxiway lighting. Hartsfield’s primary reliever airport, Atlanta’s DeKalb-Peachtree, acquired land for better noise compatibility with surrounding residents. Alabama’s Saint Elmo Airport constructed a new taxiway. Alaska’s Arctic Village Airport purchased snow removal equipment. Massachusetts’ Marshfield Airport constructed a new terminal building. And California’s Palm Springs Regional Airport rehabilitated and modernized their old terminal building.

Other Funding Sources

Airports also generate revenue through automobile and aircraft parking fees, the rental of terminal space and maintenance buildings, and in some cases the use of Passenger Facility Fees (PFFs) — the $1, $2 or $3 surcharge that airports add to the price of passenger tickets. State and local governments also contribute funding to make sure that their airports remain viable and meet the needs of local businesses and communities. In some cases, state and local governments or airport authorities use tax-exempt bonds to fund major capital improvements.