Financing the FAA : comparisons of existing and alternative systems to provide funding for the development and operations of the National Airspace System
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2000-03-30
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NTL Classification:NTL-AVIATION-AVIATION;NTL-AVIATION-Air Traffic Control;NTL-AVIATION-Airports and Facilities;NTL-AVIATION-Aviation Economics and Finance;NTL-AVIATION-Aviation Planning and Policy;
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Abstract:This paper examines selected alternative methods of financing the National
Airspace System (NAS), and presents information on the consequences to major
system users of alternative financing mechanisms. The paper examines
alternatives that have been proposed either in the United States or other
nations; no new financing mechanisms have been developed. A critical factor in
examining these alternatives is that under all alternatives there is likely to
be controversy based on perceptions of who is paying a fair share of the costs
of the system. This controversy is exacerbated by the fact, documented in the
recent study by Coopers & Lybrand, that the FAA does not currently have a cost
accounting system that would allow a more detailed, ongoing examination of the
costs of operating the NAS. However, despite the lack of a cost accounting
system, Arthur Anderson and Coopers & Lybrand concluded that the GRA Cost
Allocation study can provide an appropriate basis for an interim set of user
fees. 20p.
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