NATA Disappointed in President's Budget Proposal

Alexandria, VA, April 10, 2013 – The National Air Transportation Association (NATA) expressed disappointment in the Obama Administration's fiscal year 2014 budget proposal released today, which includes a $100 per flight user fee on general aviation as well as a change in the current tax depreciation schedule for general aviation aircraft.

"NATA is very disappointed that the President has once again proposed costly user fees on general aviation. This idea has been rejected by Congress on several occasions and NATA and the entire general aviation industry will continue to work hard to ensure that the user fee proposal doesn't see the light of day. We need to embrace ideas that create jobs, reduce burdens imposed on businesses, and improve our Nation's economy. This user fee proposal will kill jobs, create burdens on businesses, and dampen our economy," said President and CEO Thomas L. Hendricks.

A letter opposing user fees on general aviation, signed by 223 bipartisan Members of Congress, and sent to the President last week mentioned that the proposal should be abandoned once and for all.

The President proposes a $3.77 trillion budget for next fiscal year, which begins on October 1st, 2013. According to House Budget Committee Chairman Paul Ryan the President's budget proposal raises taxes by $1.1 trillion, increases spending over current levels by $964 billion, and adds $8.2 trillion to our nation's debt.

FAA Administrator Michael Huerta informed NATA and other aviation stakeholders on a conference call today that the President's budget, with respect to the Federal Aviation Administration (FAA), proposes to fund the Agency at $15.6 billion in fiscal year 2014.

The President also proposes to increase the depreciation recovery period for general aviation airplanes, such as corporate jets, from its current five years to seven years. "This would be another hit on general aviation that simply doesn't do much in terms of deficit reduction but would certainly have a negative impact on the aircraft manufacturing sector and we will continue to urge Congress to dispose of this proposal as well," concluded Hendricks.

NATA, the voice of aviation business, is the public policy group representing the interests of aviation businesses before Congress and the federal agencies.