FOR IMMEDIATE RELEASE
Date: June 12, 2003
Contact: Rebecca Hanks
Phone: (202) 224-2670



McCain Statement Regarding Senate Passage of Aviation Investment and Revitalization Vision Act


Washington, DC – U.S. Senator John McCain (R-AZ), Chairman of the Commerce, Science, and Transportation Committee, today applauded Senate passage of the Aviation Investment and Revitalization Vision Act (AIR-V), S. 824, which would authorize $43.5 billion for Federal Aviation Administration (FAA) programs over the next three years.

“We must continue to ensure the safety and efficiency of our aviation system and the modernization of our air traffic control system. We must continue to move towards more efficient operation of the FAA. And, most importantly, strive to promote the security of our traveling public,” McCain said.

This bill would reauthorize FAA programs for three years and continue the investments in the aviation system that began under AIR 21. Specifically, it would authorize funding for:

· FAA Operations at $7.6 billion for fiscal year (FY) 2004; $7.7 billion for FY 2005; and $7.9 billion for FY 2006;

· The Airport Improvement Program at $3.4 billion for FY 2004; $3.5 billion for FY 2005; and $3.6 billion for FY 2006; and

· The Airway Facilities Improvement Program at $2.9 billion for FY 2004; $2.97 billion for FY 2005; and $3.0 billion for FY 2006.

The funding levels in this bill do not require any new or increased taxes or user fees. The bill would create a process to enhance airport capacity at certain large hub airports that significantly add to delays in the national aviation system by ensuring that these airports= needs are continually reviewed. It also attempts to streamline the environmental review process by coordinating the reviews by different agencies.

The legislation makes several improvements and reforms to services to small communities and the essential air service program by continuing programs created in AIR-21 to incentivize communities to take a greater ownership role in their service. It also allows the communities flexibility to opt out of the program in return for payment or to look at alternate services for the community.

The bill extends the small community air service development pilot program, established in AIR-21, until 2006, and provides funding of $27.5 million per year during the 3-year extension. It also clarifies that 40 communities per year may participate in the program and that no community may participate twice.

Regarding competition, the bill instructs the Secretary of Transportation to study competition and airline access problems at hub airports. Specifically, the Department of Transportation (DOT) is to look at gate usage and availability, and the effects of pricing of gates and other facilities on competition and access. Within 6 months, the Secretary=s findings, conclusions, and recommendations are to be submitted to the Senate Committee on Commerce, Science and Transportation and the House of Representatives Committee on Transportation and Infrastructure.

In addition, the bill requires that airports which deny applications by an air carrier for access to gates or other facilities submit to the Secretary notification of the denial and a report explaining the reasons for the denial and a time line, if any, for when the request will be accommodated.

For security, the bill establishes the Aviation Security Capital Fund, which is authorized with $500 million annually in security service fees, which are already collected by the Transportation Security Administration (TSA). The fund will be administered by the TSA and the TSA will make grants to airports to assist with capital security costs. The fund will allocate 40 percent to hub airports; 20 percent to medium hub airports; 15 percent to small hub airports; and 25 percent is to be distributed at the Secretary=s discretion to address security risks. At the same time, the bill protects the AIP funding from continued raids on what was created for capital improvement funding, but which in recent years has been used for security funding.

The bill also directs the Secretary of the Department of Homeland Security to study the effectiveness of the aviation security system. Within 6 months, the Secretary=s findings, conclusions, and recommendations are to be submitted to the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Transportation and Infrastructure. The Secretary is directed to redeploy the department=s resources based on the results of the study.

For aviation modernization, the bill establishes a new Office of Aerospace and Aviation Liaison within the DOT. This office will be charged with coordinating aviation and aeronautics research programs, activities, goals, and priorities within the Federal Government. Areas of responsibility include air traffic control, technology transfer from government programs to private sector, noise, emissions, fuel consumption, and safety.

The bill also establishes a National Air Traffic Management System Development Office within the FAA with the mission of developing a next generation air traffic management system plan for the U.S. This plan is required to focus on transforming the national airspace system to meet air transportation mobility, efficiency, and capacity needs beyond those currently included in the FAA=s Operational Evolution Plan (OEP) in an effort to build on existing capabilities while improving the security, safety, quality, and affordability of the system.