Is the private aviation industry feeling some growing pains? Now that their industry has rapidly expanded, and the skies are more crowded, commerical aviation wants private carriers to pay their way when it comes to funding the FAA’s proposed modernization of the air traffic control system.

Time to Pay the Piper?

Last year commerical airlines paid $9 billion in taxes, while private aviation paid $600 million. The private aviation industry claims they put less of a strain on the system than the commercial carriers do. Yet private aviation has doubled in a decade and will continue to expand when the very light jets (microjets) hit the market later this year.

This rapid growth has put a strain on FAA flight control services, and is starting to delaying commercial carriers from taking off or landing. It’s so bad that the FAA has sent letters to the private aircraft community to avoid certain airports – such as Las Vegas’s McCarran – during busy times. (See BusinessWeek’s online story, Snarl in the Sky for more on private aviation growth and airport overcrowding.)

Current Proposals on the Table

The Air Transport Association, an airline trade organization representing the commercial airlines, is asking Congress to pass laws to require owners of all types of aircraft to pay user fees based the amount of time they use the air traffic control system and their departures.

One option to fund the FAA’s modernization efforts is to ditch taxes on air fares and fuel, and charge user fees based on how far a private or commerical plane flies.

Another is to hike up private jet travel fuel taxes from 21.8 cents to 70 cents per gallon. Since the FAA believes it would be administratively burdensome to charge different fuel tax rates based on the facilities used, both types of carriers would pay 13.6 cents per gallon of jet fuel. However, only private jets will pay an additional 56.4 cent common fuel tax rate.

Furthermore, the FAA wants to charge a terminal fee to private jet operators when they arrive or depart at one of the 30 largest hub airports.

What One Company Is Doing About It

Imperial Jets, a New York-based, executive jet charter broker, joined the National Business Aviation Association (NBAA) in an effort to stop a Federal Aviation Administration (FAA) proposal to increase government user fees on private jet travel.

“This affects us, as it raises the cost of private jet travel that will incur an additional cost to our customers,” said Howard Gollomp, President and CEO of Imperial Jets. The firm has a link on its website to an NBAA online form that helps people who oppose the proposal structure a letter to their congressional representatives.

How do you feel about the proposed fee increases? Will they affect your use of private jet services? Let us know at tips@heliumreport.com.