From a strictly business-savvy viewpoint, user fees for aviation don’t make sense, says Cessna CEO Jack Pelton. Talking to the Washington (D.C.) Aero Club last week, Pelton said arguments to impose such fees are based on five myths — that the current FAA funding mechanism is not working, that an overhaul is needed to pay for modernization of the airspace system, that GA doesn’t pay its fair share, that user fees would provide stable funding, and that the coming fleet (if indeed it does come) of very light jets will place added burdens on the aviation infrastructure. Pelton went on to dispute each of those points, saying the industry needs policy that is “more enlightened, more realistic, more equitable, and more cost effective.” FAA officials often speak of the need to run the FAA more like a business, Pelton said. “So, I propose we address some basic business questions before we implement more policies or procedures that could potentially add cost or make the system more burdensome than it already is.” Pelton said an evaluation of the current funding system shows little need for new revenue streams — funding for the FAA has increased, not decreased, in the last decade.
Pelton Says FAA Fees Would Be Bad For Business
Key Takeaways:
- Cessna CEO Jack Pelton argues against aviation user fees, stating they lack business sense and are based on five "myths."
- Pelton disputes common justifications for user fees, including claims that current FAA funding is inadequate, that general aviation doesn't pay its fair share, or that fees would provide stable funding.
- He highlights that FAA funding has actually increased over the past decade, suggesting no need for new revenue streams.
- Pelton advocates for "more enlightened, more realistic, more equitable, and more cost effective" aviation policies instead of potentially burdensome new fees.
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