Details:

Corporate Creators:
United States. Government Accountability Office
Subject/TRT Terms:
[+]
Airline Tickets Airport And Airway Trust Fund (Trust Fund) Air Transportation Alternatives Analysis Federal Aviation Administration's (FAA) Budget Federal Government Agencies Financing Operating Revenues Ticket Tax User Charges User Fees
Publication/ Report Number:
GAO/RCED-97-23
DOI:
https://doi.org/10.21949/1403160
Resource Type:
Tech Report
Geographical Coverage:
United States
TRIS Online Accession Number:
00734630
NTL Classification:
NTL-AVIATION-Airports and Facilities;NTL-AVIATION-Aviation Economics and Finance;
Abstract:
The Airport and Airway Trust Fund (Trust Fund) was established by the Airport

and Airway Revenue Act of 1970 (P.L. 91-258) to finance the Federal Aviation

Administration's (FAA) investments in the airport and airway system. The act

further provided that FAA's operating cost could be financed from the Trust Fund.

The Trust Fund's primary source of revenue has been a tax on domestic airline

tickets. While relatively easy to administer, the ticket tax has been challenged

by the nation's largest airlines as unfair in a deregulated environment where

other competing airlines often charge much lower fares. In May 1996, a

coalition of the seven largest U.S. airlines proposed replacing the tax with user

fees, which they believe would more accurately charge each airline for the

costs that its operations impose on the airport and airway system. Congress

asked the General Accounting Office (GAO) to examine the issues raised by the

coalition's proposal, including (1) whether the ticket tax should be replaced

by a different fee system, (2) what the potential competitive impacts of the

fees proposed by the coalition airlines would be, and (3) what factors need to

be considered if a new fee system were to be developed. This is the response to

that request. The GAO also updated its April 1996 assessment on the status of

the Trust Fund, including the implications on FAA's budget of reinstating or not

reinstating the taxes that finance the Trust Fund. 20p.


Format:
PDF
Collection(s):
US Transportation Collection
Main Document Checksum:
[+]
urn:sha256:c38f1e080eac94a9525ffba0dde92f583ebf923f31f350bdf9f335e2bcd5971c
Download URL:
https://rosap.ntl.bts.gov/view/dot/12625/dot_12625_DS1.pdf
File Type:

Supporting Files

• No Additional Files

More +