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Aviation DAILY
1001 Vermont Ave., N.W., Washington, D.C., 2005 202-659-3250

Roland Leiser, Editor Wayne W. Parrish, President
Eric Bramley, Editorial Director William V. Henzey, Executive Editor

Published daily, except Saturdays, Sunday and Holidays by American Aviation Publications, Inc., in Washington.
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Vol. 177, No. 15 Tuesday, May 21, 1968 Page 113

BOYD SENDS FEDERAL AIRPORT EXPANSION PROGRAM TO CONGRESS

The Johnson Administration yesterday asked Congress for greatly expanded programs of federal support for the nation's airways and airports systems, and significantly larger user charges to pay for the airways modernization period. The airport program of loans and grants, however, would be paid for out of general U.S government funds.

Loans would be made "for development of airports which are potentially viable but for which loans in the private market cannot be obtained on reasonable terms." Up to $1 billion in such loans could be outstanding at any one time.

In addition, the new plan would make direct grants of up to 50 percent of costs of projects for development of airports served by subsidized local airlines. Both types of assistance would be available only fir landing areas and safety facilities--the same limitation now placed on the Federal Aid Airport Program. The administration plan makes no mention of financing for general aviation airports, but suggests that these fields charge their users "modest fees" which should be "sufficient to develop and support these airports."

The airways program would "place increased emphasis on the automation of the air traffic control system and on the installation of facilities and equipment at airports served by air carriers," Transportation Secretary Alan S. Boyd said in a letter transmitting the program to Congress. "Expenditures... for classes of users."

The plan would raise the passenger ticket tax from the present five percent to eight percent and add an eight percent air freight waybill tax, but would refund to air carriers the full four percent per gallon gasoline tax. It would raise the tax on general aviation gasoline from the current two cents per gallon to seven cents in fiscal 1969, eight cents in fiscal 1970, nine cents in fiscal 1971, and ten cents in 1972. The same graduated tax rate would be applied to general aviation jet fuel, now untaxed.

Plans Announced at Philadelphia Conference

Release of the administration's twin programs--which have been under White House and Budget Bureau study since April 1--was announced yesterday by M. Cecil Mackey, DOT asst. secretary for policy development, at a luncheon meeting of the American Assn. of Airport Executives' annual conference in Philadelphia. Industry leaders at the meeting were surprised by the announcement but told The DAILY they found it "most interesting."

Their program is a little different from what we had in mind," Lee Wagener, director of the Broward County (Fla.) department of airports and AAAE president-elect said. "We will present our views on it in detail at the hearings we expect to be held in Congress."

"This announcement appears to be very interesting and should be fully considered by the airline and airport industry," Joseph A. Foster, v.p.-airport facilities of the Air Transport Assn., commented. "The fact that the federal government recognizes the magnitude of the financial problem... is a major step toward an acceptable and useful airport development program."

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