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Aviation Trust Fund in Trouble, FAA Warns
Federal Aviation Administration officials are warning Congress to figure out how to address a looming gap between aviation costs and revenue in the Aviation Trust Fund. FAA Chief Marion Blakey told a congressional committee that as Congress prepares to deal with reauthorization of aviation programs in 2007, a long-term funding solution must be found.
She describes an "unattractive list of options" if the cost-revenue gap is not addressed and the status quo remains in place. These include imposing limits on facility modernization. FAA has not drafted options for dealing with the funding gap, but is pushing for "a consistent, stable revenue stream that is not tied to the price of an airline ticket but rather reflects our actual cost to provide service". An FAA analysis of the problem points to competition among carriers forced by the expansion of low-cost carriers, who are now driving pricing. With half of the trust.
