Bush's Budget a Mixed-Bag for Aviation-centric Wichita

Feb. 7 -- President Bush's fiscal 2008 budget includes items that could positively and negatively impact Wichita's aviation industry.

The budget restores defense work in Wichita on the U.S. Air Force's fleet of E-4B aircraft -- a move that supports jobs in Wichita, Rep. Todd Tiahrt's office said.

However, the budget also proposes a change in how the nation's air traffic control system is funded. That could place a burden on the general aviation industry and be detrimental to Wichita, leaders say.

The budget was released Monday and is subject to approval by Congress.

Last year, a proposal called for the retirement the Air Force's E-4B fleet of four aircraft. The new budget, however, retains the fleet and continues funding for regular maintenance work at Boeing Wichita, said Chuck Knapp, Tiahrt's spokesman.

The budget also includes funding for a major systems upgrade to one of the aircraft. Boeing Wichita has completed the upgrades on two E-4Bs.

"Boeing and our congressional delegation have worked very hard," said Boeing Wichita spokesman Jarrod Bartlett.

Bartlett said he could not talk about the E-4B directly or any impact the budget would have on jobs.

But "any government work would have a positive impact on jobs," Bartlett said.

The E-4B is commonly known as the "Doomsday Plane." It serves as the National Airborne Operations Center for the president and secretary of defense.

But while that piece of the budget is positive for Wichita, Bush's proposed funding for the air traffic control system was not good news for the general aviation industry.

The air traffic control system is funded by ticket taxes and other charges. The budget scraps the current funding and replaces it with a system of user fees for commercial users.

The change also would likely mean higher fuel taxes paid by business-jet operators and private fliers, say general aviation industry leaders who adamantly oppose the change.

The nation's airlines support a change to user fees, saying general aviation does not pay its share of the cost of air traffic services.

"Whether there are three or 300 passengers on an aircraft, to an air traffic controller, a blip is a blip on the radar screen," Air Transport Association president James May said.

General aviation industry leaders, however, say it's the airlines that are the heaviest burden to the system.

They also say increased costs would hurt the industry, the workers and communities that rely on it.

The National Business Aviation Association called the proposal a "toxic mix" of higher taxes, new fees and increased airline control.

The current approach to funding and oversight is effective and efficient, the NBAA said.

Higher costs would prohibit some people from using business and private aircraft, said Cessna Aircraft chief executive Jack Pelton.

"We agree the air transportation system needs to be modernized," he said. "The question is at what cost; how do you pay for it; what do you get for the modernization?"

The costs haven't been defined well enough, Pelton said.

"You feel like you're signing up for a blank check, and that's a very uncomfortable position to be in," he said.

Pelton will join other industry leaders to lobby Capitol Hill.

"My sense is it's going to be a real, real fight and a real battle," Pelton said.

The Federal Aviation Administration's financing structure expires at the end of this fiscal year. The FAA plans to submit a reauthorization bill to Congress as early as next week detailing the proposal.

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