ARSA RSS Feed ARSA LinkedIn
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

ARSA Survey Invite Sent

February is survey month for maintenance providers. The association encourages its members to respond to two important questionnaires gathering data about the industry: ARSA Annual Member Survey On Feb. 20,…Read More

ARSA Insight at HELI-EXPO 2024

This month, as it prepares for the 2024 ARSA Annual Conference, ARSA’s team will make a special appearance at HAI HELI-EXPO 2024 in Anaheim, California. Sarah MacLeod, Marshall S. Filler,…Read More

2024 Annual Conference – Live Training

March 12-15, 2024 Sponsors | Information | Registration Arlington, Virginia and Washington, D.C. with Livestream Options for Conference Ambassadors The 2024 ARSA Annual Conference will close on March 15 with a…Read More

Template for Requesting CAAC Special Approval

In December, the Civil Aviation Administration of China (CAAC) issued a notice to U.S. repair stations that it would no longer consider Special Approval applications for certificate extension. Pending new…Read More

FAA Proposes Removing Repair Station “Current” Data Requirement

On Jan. 31, the Federal Register published a notice of proposed rulemaking from the FAA that would amend § 145.109(d) to remove the requirement for repair stations to keep an…Read More
Schaeffler Aerospace
ARSA