ARSA RSS Feed ARSA LinkedIn
Ask ARSA Online Portal

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

Give EASA Feedback on Easy Access Rules

On Oct. 7, the European Union Aviation Safety Agency (EASA) released a survey seeking feedback on the usefulness of its Easy Access Rules, which it first produced in 2017 as…Read More

Beyond Benevolence with FAA Youth Task Force

On Oct. 8, the FAA convened the fourth public meeting of the Youth Access to American Jobs in Aviation Task Force. The session followed the task force’s usual format: updates…Read More

Hotline Highlight – Much to Report

The hotline – ARSA’s premier member newsletter – contains news, editorial content, analysis and resources for the aviation maintenance community. All members should ensure they receive their edition the first week of…Read More

Anti-Viral Measures

For the use of its members and the larger aviation community, ARSA is maintaining this page as a resource for virus-related updates on policy initiatives and business needs. Please bookmark…Read More

FAA Global Leadership Meeting Recordings Available

On Sept. 22 and 23, the FAA hosted its 8th Annual Global Leadership Meeting. The event focused on “Restart and Recovery” and was presented online; session recordings are available for…Read More
ARSA