Private Jets and the U. S.

Private jets have once again come under scrutiny for the minimal amount of taxes they contribute towards the maintenance and operation of the national air transport system. According to the New York Times, private jet users account for less than 1% of the Federal Aviation Administration’s (FAA) tax revenues, despite making up 7% of the air traffic in U. S. airspace. This means that everyday flyers who pay the 7. 5% U. S. Transportation Tax as part of their airline tickets are essentially subsidizing the system for private jet users.

The National Business Aviation Association (NBAA) refutes this claim, stating that the taxes paid by general aviation (which includes private jets) cover their use of the system. They argue that the hub-and-spoke model used by major airlines is what drives up costs and complexity, not private jets. This is because smaller general aviation airports, which are commonly used by private jets, do not have the same staffed control towers and therefore have a proportionally smaller impact on the system.

The NBAA also points out that when general aviation was temporarily barred from using Washington, D. C. ‘s Ronald Reagan Washington National Airport after 9/11, there were minimal impacts on airport costs. However, they do not address the proposal put forth by the New York Times to adopt a system similar to Canada’s, where users of NAV CANADA (a private, not-for-profit company) are charged based on the weight and distance of their aircraft.

In the United States, individual passengers bear the burden of funding the FAA through ticket taxes, even though it is ultimately the aircraft that are counted and used by the ATC system. However, the FAA also receives funding from the General Fund and charges various user fees and fines. Additionally, the recent federal spending bill includes tax cuts for businesses purchasing private jets for business use, allowing them to deduct the entire cost of the aircraft in one tax year.

While the NBAA argues that private jets benefit the economy by increasing productivity for businesses, the reality is that regular flyers are left to foot the bill for the maintenance and operation of the national air transport system. As private jet sales continue to increase, it is clear that the current system is unfair for everyday flyers. Changes need to be made in order to create a more equitable and sustainable system for all users of the national airspace.