It looks as though congress passed this legislation about a week ago (H.R. 2881 FAA Reauthorization Act of 2007) and Bush has said he will sign it before 1st October deadline.
According to a press release from the House Transportation and Infrastructure Committee:
The House today approved and sent to the Senate a bill providing a temporary extension of Federal aviation programs through the end of 2007. The current authorization expires on September 30, and some programs would lapse without an extension.
The House approved a new, four-year authorization bill on September 20, and a companion bill is pending in the Senate. Todays action would provide the two chambers with additional time to finish work on that legislation.
The U.S. based airline ticket taxes are set to expire this Sunday 30th of September.
Evidently our legislators in D.C. haven’t completely taken action on this expiration…
We are talking about tens of millions of dollars a day in taxes including:
- 7.5% US Ticket Tax (applied to all U.S. domestic airfare)
- $3.40 Flight Segment Tax (charged for each takeoff and landing)
- $15.10 US International Departure Tax (charged for U.S. based international departures)
- $15.10 US International Arrival Tax (charged for U.S. based international arrivals)
This revenue, while collected by the airlines is destined for the government, so it really doesn’t have much monetary effect on the airlines, other than probably causing a rush to buy airline tickets.
It would seem doubtful, that revenue intended for the FAA and this most pressing time — based on the recent increases in flight delays and cancellations (a much discussed topic even by our president), would be allowed to lapse.
Putting this into perspective on what taxes we pay on an airline ticket — a $200 out the door roundtrip (connecting) airline ticket today, would in theory cost approximately $175 after midnight on Sunday — for every airline ticket sold that departs/arrives from/to the U.S.