Utahns already steamed about high air fares can expect the cost of flying to soar to new heights if a federal proposal to increase existing taxes on travelers and to levy a new airport fee goes through, local travel officials say.
As part of his $22 billion budget proposal, Transportation Secretary Samuel Skinner has included requests to raise taxes on aviation fuel by 25 percent and on airline tickets by 10 percent, and also to allow airports to charge a $3 user fee to passengers. Airlines are expected to pass all the fees on to consumers."I am reluctant to see that. I like to see things stimulate travel, but more tax on the consumer will have a tendency to slow travel," said Dave Barnes, director of sales for Murdock Travel.
He recommended travelers consider booking trips early to take advantage of today's cheaper fares, in case the tax increases pass. "If it doesn't go through and fares go down, then you can be reticketed at the lower fare," he said.
Utahns continue to complain of air fares from Salt Lake International being too high, blaming Delta Air Line's dominant hub operation. But now Delta can blame someone else.
"An increase in our costs will have to be passed on to maintain our operating margins," said Delta spokesman Neil Monroe, referring to the proposed fuel tax.
A 25 percent hike in aviation fuel can result in considerable cost to an airline. Monroe said a 1-cent per gallon increase can jack the price of fuel up $20 million a year.
He said Delta has no problem with Skinner's proposals as long as the revenues are spent on the nation's airports.
Those for and against the tax increases point out that the federal government has a $7.5 billion surplus in the federal aviation trust fund from ticket and fuel-tax revenue collected in the past. They say the money is used to mask the size of the federal deficit and not spent on airport improvements.
Surprisingly, the Salt Lake International Airport has come out against the taxes. The airport is a party that supposedly would benefit from the revenues.
"I don't support it. I don't think it is necessary," said Louis Miller, director of airports for the Salt Lake City Airport Authority. "If it's appropriate they should spend the money they already have."
Ditto from the Intermountain Area Aviation Association. President pro tem Ken Hepner, of Barken International Inc., a general aviation firm based in Salt Lake, said his organization is opposed to any new tax on fuel, passengers or cargo until what already has been collected is spent.
Miller said the airport receives about 30 percent - $6 million to $8 million annually - of what it collects through an 8-percent tax on tickets for flights departing from Salt Lake International.
He explained that the $3 head tax (or user fee as the federal officials refer to it) proposal would require a change in federal law, which currently prohibits airports from independently taxing passengers.
Despite complaints that past revenue hasn't been spent, the Federal Aviation Administration said the increases are necessary because the trust fund will be tapped through fiscal 1995 to meet 85 percent of the flying public's needs. About 57 percent is now used, but the FAA said the increases would boost federal funding for aviation projects by 75 percent over the next five years.
In addition to the plan for funds spent on airport improvements, the FAA expects to spend between $22 billion and $24 billion on operations and maintenance over the next five years, including salaries of air traffic controllers.