Press Releases
Larsen Opening Statement: Airport Financing and Development
Washington, DC,
June 18, 2014
Rep. Rick Larsen, WA-02, the Ranking Member of the Aviation Subcommittee, delivered the following statement at the subcommittee’s hearing on “Airport Financing and Development.” The remarks are as prepared for delivery. Thank you, Chairman LoBiondo, for calling today’s hearing about “Airport Financing and Development.” In 2013, the U.S. saw over 730 million passengers travel through its airports. By 2027, the Federal Aviation Administration (FAA) forecasts the number of annual domestic and international air passengers in the U.S. will reach 1 billion. Forecasts of increasing air travel may seem encouraging for the economy, but without adequate investment, passengers may experience more congestion and delays and our country may lose economic opportunities. In a recent study, the U.S. Travel Association found that one in five of the nation’s major airports currently experiences Thanksgiving-type levels of congestion at least once a week. Unless airports add capacity, 24 of the nation’s top 30 airports will reach these levels of congestion within the next 5 years. There are real dollar figures associated with the economic losses that will occur if our airports cannot accommodate this increased future travel. One study by the ENO Center for Transportation estimates that in 2016 alone, the U.S. economy will lose out on over $6 billion in travel spending because of capacity constraints at just 2 airports (John F. Kennedy International Airport and Newark International Airports). By 2034, the Center estimates this figure will reach $48 billion annually. We cannot have a big league economy with little league infrastructure. Our nation’s airports are critical economic drivers and gateways that connect travelers all over the globe to the United States. They also connect our own local communities to each other across the nation. We must continue to invest in our infrastructure to remain economically competitive. At the same time, we need to make sure that we do not over tax and overburden the aviation industry and passengers. Congress has long recognized a federal role with respect to investing in our aviation infrastructure. Two important ways the federal government supports the development of airports include the Airport Improvement Program (AIP) and Passenger Facility Charges (PFCs). The FAA estimates there are $42.5 billion in AIP-eligible airport capital projects needing investment over the next 5 years (or $8.5 billion annually). And a leading industry airport association estimates capital need at $71.3 billion over the next 5 years (or $14.3 billion annually) for both AIP-eligible and non AIP-eligible airport projects. The FAA Modernization and Reform Act of 2012 authorized annual AIP funds for $3.35 billion annually through 2015. However, even with airports’ ability to raise revenue through PFCs, there is a significant gap between the available funding and the investment needed for these critical safety and capacity projects. As we prepare to reauthorize the FAA next year, this hearing is an opportunity for us to explore the issues facing our nation’s airports. This includes examining the current needs of our airports, how the industry is financing capital development with its limited resources, and the federal government’s role to ensure adequate investment. This is no small task. There are more than 19,000 airports in the United States. And nearly 3,400 of those airports are designated by FAA as part of the National Plan of Integrated Airport Systems (NPIAS), making them eligible for federal funds. These airports range from large hubs with commercial service to small general aviation airports. We have one of the greatest aviation systems in the world. Whether large or small, airports across the country have a documented economic impact on their communities as well as the ability to connect people, goods and services. In my home state of Washington, my constituents rely on airports of all sizes. In my hometown of Arlington, general aviation at Arlington Municipal Airport is hugely important, and the annual fly-in there brings in people from across the country. Bellingham International Airport in Northwest Washington is a developing commercial airport and has seen double-digit growth in recent years, requiring further investments in terminal and operations infrastructure. My constituents also rely on Seattle-Tacoma International Airport, one of the major hubs in our country’s aviation network. I’m pleased that Mark Reis from Sea-Tac is with us today. Each of these airports plays a different, yet important role in serving the local community and the national aviation network. As this committee considers airport funding, we need to encourage investment at airports large and small. Mr. Chairman, as we recently discussed at our hearing regarding small community air service, maintaining a national air transportation system will require a sustained federal commitment. I look forward to hearing from our witnesses today about the status of our airport infrastructure and ideas for continued investment now and into the future. Thank you and I look forward to hearing from our witnesses. ### |