Federal Aviation Administration might Shutdown at Midnight

Honolulu, Hawaii, July 22 (DHN) – If Federal Aviation Administration shutdowns, air travelers will reap savings. While most ordinary citizens don’t think the government budget fiasco will affect them in any discernible way, airline travelers might begin reaping cheaper airfare tonight at midnight if the Federal Aviation Administration has a partial shutdown. That’s because airline ticket taxes could be gone, at least temporarily.
Due to the US Senate rejecting a House plan to cut government spending, the Federal Aviation Administration is just a few short hours from a partial shutdown. The Federal Aviation Administration operating authority expires tonight at midnight and will leave at least 4,000 employees temporarily out of work. Not only will 4,000 FAA workers be unemployed, passengers will be able to purchase airline tickets without any taxes. According to Transportation Secretary Ray LaHood, a partial shutdown of the FAA will result in the US government losing at least $200 million in airline ticket taxes, per week! Despite the shutdown, airlines plan on continuing to conduct flights. The Federal Aviation Administration employs more than 47,000 workers overall. Since 2007, the government has been unable to compromise on a plan for long-term funding legislation. This has resulted in the agency being funded through 20 short-term extension bills over the last 4 years. While the previous extensions have been passed with no hitch, this 21st extension has being gridlocked due to a provision that was added to help subsidize rural airline service to 13 rural airports. The battle over a $16 million yearly provision might cause the government to lose $200 million a week in airline taxes!

Shutdown could prove to be a stimulus for Hawaii travel!

The tax on a $600 round-trip airline ticket is roughly $120. Should a traveler to Hawaii get those kind of savings on an airline ticket, a traveler might be inclined to stay an extra night on vacation. One thing remains certain, tonight at 6 pm in the Hawaiian-Aleutian time zone Hawaii travelers might be booking airline tickets in droves! All content, unless otherwise noted, is created by and for Discover Hawaii News, a wholly owned subsidiary of Discover Hawaii Tours. © 2011

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