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The availability of cheap airplane tickets and cheap vacation packages is not expected to be impacted by the proposed Federal Aviation Administration (FAA) budget which recommends almost $15.2 billion in spending during the next fiscal year. This amount is about 5 percent less than the prior year and the reduction is primarily being paid for by reducing airport grants. While airport grants total $2.4 billion for the next fiscal year, this represent a $926 million cut from current spending. Government grants for runway construction and other airport improvement will be spent largely on smaller commercial and general aviation airports. The FAA is encouraging larger airports to increase passenger facility charges to pay for airport improvements, though federal legislation authorizing such action is unlikely. The airport industry has expressed disappointment that the FAA policy legislation currently before Obama does not include any increase in passenger facility charges. $1 billion will go towards modernizing the nation’s air traffic control system. A new approach to managing our airways, called “NextGen” will enhance satellite based surveillance of planes to replace ground based radar, develop new arrival and departure procedures, and improve data communications. NextGen is being referred to by the FAA as the “largest transformation of air traffic control ever.” The Airports Council International-North America organization has complained that nothing has been done to try and help financially empower local airports by removing the cap on Passenger Facility Charges so local communities can determine what funds need to be raised to meet the future needs of their airports.
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