Airports, TSA and Airlines: Who are the winners and losers in the federal budget proposal?

Jan. 1, 2014
From my own budgeting exercises, I know full well tough choices often come with them. But in most of these cases, no one emerges the winner. But on the surface of this plan, everyone wins something—and it ends talks of yet another government shutdown.

At the beginning of every month, I sit down at the table and prepare my budget. I finagle the numbers, putting money here, putting money there, until every penny is designated for something. And given that I have five kids and the dogs, bunnies, goats, and horses that came with them, I know a thing or two about an unbalanced budget and what it takes to keep it balanced.

As I write this column, the U.S. House of Representatives is doing its own budget exercise and is prepared to vote on the Bipartisan Budget Act of 2013. Ultimately if the Paul Ryan-Patty Murray budget deal passes, airline tickets could get more expensive, but the TSA will continue to guard exit lanes at airports.

There are some positioning this deal as a win-lose situation. The TSA wins, but the airlines lose. Airports win, but still the airlines still lose.

I’m not sure we should view it that way.

The Congressional budget deal changes the fees from $2.50 per leg of a connecting flight capped at $5, to a flat $5.60 fee each way on a trip. The federal government believes this increase will generate an estimated $12.6 billion over the next decade. 

Now the airlines are crying foul, saying a hike in fares could discourage travel. This statement seems somewhat ironic given that those same airlines charge bag fees from $25-75, non-refundable ticket change fees up to $150, early bird boarding fees of $40, and seat selection fees at $30. Fees people—myself included—are more than willing to pay (well, I do draw the line at paying to board a plane earlier).

The reality is most of us will open our wallets wider for the convenience of air travel, which gets us from Point A to Point B in a safe and efficient manner. And doubling the TSA fees attached to a round trip ticket won’t keep us on the ground anymore than having to pay for an aisle seat.

Though the general public does wind up paying more, there is a price to pay for airport security—something we all want and value, especially since 9/11.

And there are some clear winners in this deal. The TSA wins because the higher fee will offset approximately 43 percent of its security costs and eliminate the aviation infrastructure security fee charged to air carriers. Airports also win because as of January 1 they will no longer need to staff exit lanes currently manned by the TSA.

From my own budgeting exercises, I know full well tough choices often come with them. But in most of these cases, no one emerges the winner. But on the surface of this plan, everyone wins something—and it ends talks of yet another government shutdown.

THUMBS DOWN: FCC to Weigh in on Cell Phone Use on Planes

Which is more important? The technically possible or the socially impossible? The Federal Communications Commission (FCC) is considering allowing passengers to use their cell phones on airplanes. If approved, cell phone use would be restricted during takeoff and landing, but the proposal would lift the FCC ban on airborne calls and cellular data use once the flight reaches 10,000 feet. It’s up to the airlines whether or not they allow it if the proposal passes. It’s unknown if they will because of strong objections from customers who do not want other passengers making phone calls in the close confines of an airplane.