Statement of Administration Policy: S. 1491 - Federal Aviation Administration Authorization Act

(Senate)
(Ford (D) Kentucky and Exon (D) Nebraska)

The Administration supports, with the caveats stated below, the Amendment in the nature of a substitute to S. 1491 that it understands will be offered on the Senate floor. Many of the Amendment's provisions will greatly assist in the revitalization of the American aviation industry.

The Administration particularly supports the Amendment's provision which addresses the problem of inconsistent regulation of intermodal all-cargo air carriers. Enactment of this provision would be an important step in resolving conflicting laws that interfere with efficient intermodal cargo movements.

The Administration also supports the efforts of the Amendment's sponsors to resolve the issue of airport rates and charges. The Administration will continue to work with the Congress to ensure that the Department of Transportation is afforded sufficient flexibility to craft workable regulations in this area.

The Administration is concerned, however, that the Amendment's required study of innovative airport development financing will unreasonably delay the actual implementation of such approaches. In light of the urgent need to increase non-Federal involvement in the financing of airport improvements, upon completion of the study, the Administration will seek any additional authority necessary to implement innovative financing.

The Administration also opposes, and will seek to delete during the legislative process, provisions of the Amendment that create an exception to the prohibition against state regulation of intra-state air transportation.