Another FAA Shutdown is on the Horizon (ContributorNetwork)

Another shutdown of the Federal Aviation Administration is possible when the current funding plan expires at the end of January. If it seems like an FAA shutdown is in the news every few months, that is because it is. The agency has not had a long-term funding plan since 2007, and has instead been funded by a series of 22 short-term extensions. While the deadline seems far off, lawmakers the Senate and House of Representatives schedule adjournments in early December, which means the deadline could arrive quicker than anyone expects.

Was the FAA shutdown earlier this year?

At the end of July, the FAA was shut down for a two-week period. The current short-term funding measure was passed after a compromise was reached. The holdup on the September version of the FAA funding bill was over states being required to reserve ten percent of federal money for beautification projects as reported by Political Hotsheet from CBS News. Sen. Tom Coburn agreed to the legislation if that line was removed from a long-term funding package in 2012.

What happens without FAA funding?

Without FAA funding in place, thousands of agency employees are put out of work and the agency loses authority to collect taxes on airline tickets. The combination of lost revenue to the government and the surge in unemployment is burden to the U.S. economy, but also to the completion of construction projects at airports around the country.

Are all FAA employees furloughed?

Staff that is essential to safe operations, like air traffic controllers, are unaffected by any FAA shutdown. That means while clerical FAA employees would not be authorized to report to work, the industry can continue to operate safely.

Do the airline profit from any shutdown?

This summer when the operating authority of the FAA was stopped, airlines raised airfares by the exact amount of the taxes that were ceased to be collected. That practice led to a windfall profit for airlines of around $200 million a week. Many analysts and administrators, including Transportation Secretary Ray LaHood, condemned the action by the airlines, because the tax savings could have been passed on to airline passengers.

Why the short-term extensions and no long-term bill?

This time around the main sticking point mirrors a sticking point in previous negotiations. According to Bloomberg Businessweek, the debate is centered around House Republicans wanting to overturn a National Mediation Board rule that allows railroad and airline employees to form a union with a majority vote. The Republicans have the backing of the airline industry on the issue.

Jason Gallagher is a former travel professional with a decade of experience in the industry. He remains an avid traveler and hotel fan with exposure to technology and trends in properties across the United States.

Source: http://us.rd.yahoo.com/dailynews/rss/uscongress/*http%3A//news.yahoo.com/s/ac/20111115/us_ac/10442033_another_faa_shutdown_is_on_the_horizon

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