U.S. airlines and airports fell into opposing camps over the Obama administration’s Fiscal Year 2015 budget request for the Federal Aviation Administration, which would raise the cap on the passenger facility charge (PFC) airports are entitled to collect for every boarded passenger from $4.50 to $8.
United States federal budget
The Pentagon proposes retiring the U-2 Dragon Lady and A-10 Warthog in the Fiscal Year 2015 defense budget it will present to the Congress next week, Defense Secretary Chuck Hagel said. Hagel and Army Gen. Martin Dempsey, chairman of the Joint Chiefs of Staff, previewed the budget for reporters on February 24.
While many people breathed a sigh of relief when Congress pulled the nation back from the so-called “fiscal cliff” at the beginning of the new year, most of those who were following the contretemps didn’t realize it was mainly political theater.
“While we are pleased Congress made some headway on tax elements to avert the fiscal cliff, we are concerned that they could not agree to a long-term solution to fix a problem no serious person wants: sequestration,” said Aerospace Industries Association (AIA) president and CEO Marion Blakey.
The U.S. Federal Aviation Administration would have to slash its operations budget and could not support current levels of passenger and air cargo activity if the process of automatic federal spending cuts known as “sequestration” takes effect in January as scheduled. In turn, reduced passenger and cargo activity would lead to job losses and other economic fallout, according to a study released by the Aerospace Industries Association (AIA).
If automatic federal budget cuts known as “sequestration” take effect in January, the Obama Administration and the FAA could ramp up efforts to impose aviation user fees to plug the gap, NBAA fears. Under sequestration, the FAA budget could be cut by $1 billion annually, according to an Aerospace Industries Association (AIA) study released on Monday.
The U.S. aviation system would suffer a “devastating” hit if the process of automatic federal budget cuts known as “sequestration” takes effect in January, according to industry leaders. An Aerospace Industries Association (AIA) study released yesterday estimates that 132,000 aviation jobs would be lost in the first year as a result of sequestration, which requires $500 billion in federal non-defense spending cuts over the next decade.
In mid-December the U.S. Congress authorized $662 billion in defense spending for fiscal 2012, trimming $27 billion from President Obama’s request in probably the last budget before deeper, more painful, cuts are required by the Budget Control Act passed in August.
An economic impact analysis commissioned by the Aerospace Industries Association (AIA) predicts that more than one million jobs will be lost in the aerospace and defense industry, if the U.S. Congress fails to reach an agreement that would prevent automatic government spending cuts.
Defense spending cuts of some $350 billion over the next decade contained in the new debt-limit legislation passed by the U.S. Congress correspond with the numbers expected from an earlier goal advanced by President Obama. But the Pentagon leadership described the potential of $600 billion more in automatic spending cuts as disastrous.
President Obama outlined ambitious new goals for U.S. deficit reduction, including a call for growth in security spending to be held below inflation over the next 12 years. This amounts to a $400 billion cut over current plans. Fiscal hardliners have called for even greater cuts in defense spending–up to $1 trillion. While the Congress would probably not implement such drastic surgery, the outlook for defense spending in the U.S.
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