U.S. favors congestion pricing for busiest airports: sources

By John Crawley

WASHINGTON (Reuters) - Airlines, business jets and private pilots could pay a premium for using congested airports under a U.S. government proposal to be unveiled on Wednesday for overhauling how air traffic services are funded, aviation and other sources with knowledge of the plan said.

The Federal Aviation Administration will detail their long-anticipated plan for the private sector to play a much more prominent role in long-term financing of its operations.

The government, which oversees the sprawling air traffic control network, will move to a financing system based on user fees and fuel taxes that Bush administration officials hope will produce a more stable stream of revenue and ease demands on the federal treasury.

FAA officials would not comment on the proposal late on Tuesday.

Airlines and general aviation officials also declined to comment ahead of the FAA announcement. However, each group is concerned about new costs.

The lead trade group representing private pilots, the Aircraft Owners and Pilots Association, has been aggressive in lobbying lawmakers on the prospect of significantly higher fuel taxes on its 410,000 members.

Congress must approve a new formula for FAA funding by the end of September or reauthorize the existing one, which relies on airline ticket taxes and other fees, fuel taxes and an annual outlay from general government tax receipts.

The FAA budget currently runs about $14 billion and agency officials say the boom in budget airlines charging bargain fares has undercut its revenues.

Some lawmakers have already expressed skepticism about the FAA's plans, which will be presented formally to lawmakers for the first time at a hearing Wednesday afternoon.

The aviation sources said the FAA wants authority to charge all users a premium for using the most congested airports, especially at the busiest times of the day.

The FAA also wants to impose pricing mechanisms based on aircraft weight and raise the ceiling on the airline passenger fee that helps pay for airport improvement projects, the sources said. The cap currently is $18.

Fuel taxes also are expected to go up sharply for business jets and other general aviation users from the current 21.9 cents per gallon, according to the sources.

Airlines have lobbied hard to shift more of the funding burden to private pilots and business jets.