The State and Future of Airport Funding Essay examples

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There has been a lot of controversy over the years about the federal government’s involvement and financial obligation to the airway industry. The construction of runways and taxiways are the largest development cost at hub airports and terminal development is second (Sanchez, 2006). The introduction of the Airport Improvement Plan (AIP) was the start of any significant federal funding for airports and the air industry. There has been an interest in privatization of airports and several attempts. This paper will discuss some of the basic information about the AIP and airport funding.
History
The first federal assistance given to airports or the air industry was the Works Progress Administration (WPA). In the 1930s, almost $150
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Some of the problems were deciding on the passenger facility charges and the spending and distribution of moneys.
Although the AIR21 left the overall structure of the AIP the same, the AIAR-21 did set several rules. The first is that legislation must not be considered that does not use the trust fund revenues for aviation. The second rule states that the budgets for the FAA’s Operations and Maintenance or Research, engineering and Development budgets can only be considered if the budget for the AIP and the Facilities and Equipment budgets are at their authorized levels. The second rule has not been enforced in recent years (Kirk, 2009).
The AIR-21 increased annual funding for airports by almost $10 billion (Young & Wells, 2011, p. 84). The formula for funding airports was changed to increase the amounts available. They also increased the PFC per passenger to $4, with a stipulation. This meant that large and medium hubs would return or not get 75% of their AIP funds and leave more funding for smaller airports (Kirk, 2009). The AIR-21 funding was meant to help large and small airports. The large and small airport funding was doubled and more funds were guaranteed for airport improvements (Young & Wells, 2011, p. 84). The Vision 100, passed in 2003, increased funding and made only small changes (Kirk, 2009).
Airport Improvement Plan
The Airport Improvement Program (AIP) is a program that provides federal grants for

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