The Real Reason Airfares Are Rising
I saw this story today from the Associated Press and got a little bit concerned about why the cost of airline tickets is going up. It’s not just the price of oil!
Continental Airlines spent $950,000 in the first quarter to lobby on federal aviation funding and other issues, according to a disclosure form.
The airline lobbied on legislation dealing with funding for the Federal Aviation Administration, security matters, customer service commitments, extending a federal war risk insurance program and other issues, according to the form posted online April 21 by the House clerk’s office.
The Houston-based airline spent nearly $2.3 million to lobby the federal government in 2007. The general aviation industry and commercial airlines disagree over how much each should have to pay for upgrading the nation’s air traffic control system and other aviation programs. Congress has approved a temporary measure to continue FAA funding through June, but the larger issue of reauthorizing the agency is unresolved.
The House passed a bill in September that would have increased the jet fuel tax for noncommercial planes, the aviation gasoline tax and the cap on fees airports charge passengers for capital improvements. Commercial airlines and the Bush administration say the bill does not fairly link fees to system use, but the aircraft owners’ association and other general aviation groups oppose user fees. Besides Congress, Continental Airlines lobbied the Transportation Department in the first three months of the year.
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