Join ARSA Ask ARSA Pay ARSA

Obama Administration Releases Budget Proposal

On April 10, the Obama administration unveiled its fiscal year 2014 budget proposal, which contained several policies strongly opposed by the aviation industry.

President Obama requested $15.6 billion to fund the Federal Aviation Administration (FAA), including a very slight increase (0.6 percent) above the FY 2013 appropriated levels for the operations account.  However, the devil is in the details.

The administration once again seeks to increase the depreciation recovery period for general aviation airplanes that carry passengers to seven years.  ARSA and the broader aviation industry have strongly opposed similar efforts in the past because of the economic impact it would have on general aviation.  Currently, aircraft not used in commercial or contract carrying of passengers or freight, such as corporate jets, are depreciated over five years.

Additionally, the president recycled another proposal that would detrimentally impact general aviation.   The administration’s budget establishes a new surcharge for air traffic services of $100 per flight.  The budget assumes this fee would raise $605 million in FY 2014, rising to $836 million in FY 2023.  Similar to altering the general aviation airplane depreciation schedules, user fees have been widely disparaged by lawmakers and the aviation industry.

Finally, the Obama administration is pursuing increased commercial passenger ticket fees to fund aviation security and deficit reduction.  Many, including the major air carriers, believe increasing ticket costs will result in less commercial air travel.

For better or for worse, the recent trend has been that presidential budget proposals carry little weight on Capitol Hill.  Nonetheless, ARSA will continue to work with our industry allies to ensure the aviation sector isn’t unfairly targeted by policymakers.



More from ARSA

Workforce, Government Among Top Supply Chain Risks

The U.S. Department of Transportation’s Aerospace Supply Chain Resiliency Task Force delivered its final report on Nov. 4. The task force was created by Congress in 2023 to identify risks…Read More

Quick Question – 2025 Conference Planning

March 18-21, 2025 Arlington, Virginia and Washington, D.C. with Livestream Options for Online Participants Event Information | Registration Coming December 2024 The repair station community’s premier substantive event returns; help ARSA’s…Read More

Tuition Reduction for ARSA Members & Their Families

At its annual meeting in October, the ARSA Board of Directors was briefed on ARSA’s newest member benefit: tuition discounts to association member contacts and their families (spouses, domestic partners,…Read More

How the Administrator Can Improve Stakeholder Committees

On Oct. 22, ARSA joined ten other industry organizations including both allied trade associations and independent businesses in requesting FAA Administrator Michael Whitaker’s assistance improving support for agency-convened stakeholder committees.…Read More

Breaking Invisible Walls at Leadership Roundtables

On Oct. 17, ARSA convened its annual Leadership Roundtables with representatives from the FAA, EASA, and 10 allied organizations joined the association’s board of directors for an afternoon of industry…Read More
ARSA