Aviation Bill's Hardly a Fix

Viewed in that context, the corporate jet issue is particularly galling. Not only does it involve fiscal policy that unfairly shifts costs, it penalizes a financially challenged industry.

Commercial aviation accounts for 53% of the travel through New York's congested airspace, said Joe Kolshak, executive vice president of Delta(DAL Quote), at a Senate aviation subcommittee hearing on congestion. The rest is by business jets and general aviation.

"Unfortunately, the current FAA funding system places the bulk of the costs on commercial airline passengers, which is unfair," Kolshak said.

Nationally, commercial aviation uses about two-thirds of the system's capacity, but pays 92% of the cost, ATA says. Corporate aviation uses about 17% of the system and pays 7%. Military use accounts for the rest. Subsidizing corporate jets costs commercial airlines about $1 billion a year.

While it fails to address the inequality, the House bill does find new ways to raise ticket prices. In particular, it lets airports increase fees, known as passenger facilities charges, by up to $2.2 billion annually. PFCs, as they're known, already provide airports with $13 billion annually. The bill would raise the maximum PFC from $4.50 to $7, adding as much as $28 to a round-trip ticket's cost. It stipulates that bicycle rack construction is eligible for funding.

Meanwhile, the airline industry still has a chance to get something better. The White House has indicated the House bill would likely be vetoed. Both Democratic and Republican leaders of the Senate aviation subcommittee oppose it.

At Thursday's hearing, ranking minority member Sen. Trent Lott (R., Miss.), said modernization is needed but, "unfortunately the wheels have come off. Business and corporate and small aviation have got to do their part. Everybody says we need modernization. But everybody says 'We ain't going to pay for it.'"