ATW Daily News

House aviation chair wants to stop federal funding for A380 airport upgrades

Tuesday June 27, 2006

A senior US lawmaker is calling for a ban on federal funding for A380-related upgrades at US airports until a domestic airline orders a passenger version of the next-generation aircraft.Rep. John Mica (R-Fla.), chairman of the House aviation subcommittee, said he plans to introduce legislation that would prohibit using federal airport grants on any A380-related construction project.

A report released last week by the Government Accountability Office, the investigative arm of Congress, estimated 18 US airports would spend a combined $927 million upgrading facilities to accommodate A380s. About half that funding is expected via FAA grants generated from passenger ticket fees, money that would be cut off under Mica's proposed legislation. "It is patently unfair for US taxpayers to effectively subsidize the operations of the A380," he said.

FedEx and UPS each have ordered 10 A380 freighters but no US carrier has ordered a passenger version. It is unclear whether Mica's proposal would affect grants for modifications at airports used by FedEx and UPS. It also is unclear how he plans to distinguish between runway and taxiway upgrades made for A380s and those done for other aircraft such as the 747-8. "Modifications necessary for the A380 should also be deemed necessary for 747-8 service," Dan Cohen-Nir, Airbus North America safety and technical affairs program director, wrote in a response to GAO's findings.

Cohen-Nir said a "more reasonable" estimate for costs associated with A380 projects at US airports "is in the region of $720 million." He added that airports have chosen to make A380-related upgrades "to remain competitive" in the global market and that "the A380 will generate a substantial increase in airport revenues for the airports it will serve."

But Mica contends that until a US passenger carrier orders an A380, "foreign airlines that operate A380 passenger service to and from the US should pay for any needed infrastructure improvements at the airport they serve."

Airbus spokesperson Mary Anne Greczyn said, "Most airports predict the A380 will be a moneymaker for them. The A380 is a winner for airports in many ways, among them revenue and being able to accommodate more people in fewer flights, thereby reducing congestion at the airport."

by Aaron Karp

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