Secretary Ray LaHood

Aero Club of Washington & New York Wings Club Joint Luncheon

Washington, D.C.

April 30, 2009

 

I’d like to provide some perspective on our first 100 days, and let you know where we’re heading in terms of aviation policy, generally. But first I want to mention the H1N1 flu virus: We know this could be tough on airlines, economically.  But we’re not going to panic. We’ll listen to all the experts, consult with the CDC, and take prudent measures to protect the health and safety of the traveling public, our transportation workers, and our communities.

Safety is always our highest priority at DOT. Now I have some good news to share. As you all know, there are some long-standing issues between air traffic controllers and the FAA. One of my highest priorities, since coming to DOT, has been to resolve this issue so that we can move forward to make our commercial aviation system even better than it already is.

I’ve been talking to Pat Forrey at NATCA about this from the beginning. I’m fully aware that air traffic controllers do an extraordinary and essential job on behalf of the flying public. They don’t always get a lot of credit for their work. We should all be grateful to Patrick Harten and the other controllers who helped clear the skies for US Airways flight 1549, piloted by Captain Sullenberger. And the controllers at Miami Center who helped a novice pilot safely land a Super King Air turbo-prop plane earlier this month, after the pilot became unconscious in mid-flight. They also did a first-rate job. So I’m pleased to tell you that Jane Garvey, whom you all know, has agreed to oversee two mediators who will be responsible for solving the contract dispute. Jane is a terrific public servant with a great deal of expertise when it comes to aviation and we are fortunate that she is willing to take on this challenge.

I’m also confident that we will have Randy Babbitt on board as FAA Administrator before long. Randy is a leader in aviation safety and policy – and an extremely experienced pilot. So he brings tremendous perspective to the agency.

President Obama has set an ambitious agenda for the nation. As you know, one of the highest priorities has been to stabilize the economy, calm the financial markets, and put people back to work. The President determined early on that one of the key engines of economic recovery would be to invest in our transportation infrastructure -- and create good local jobs in the process. To be successful, this strategy needs to work quickly. We need projects that are ready to go. That’s why the first months of our administration have focused on all types of transportation projects, including aviation. We think we’ve made a lot of progress in a short time. 38 billion of DOT’s 48 billion dollars in recovery funds is available now. Roughly 2,800 surface and aviation projects are under way or getting started. We estimate that DOT’s Recovery Act investments alone will create many, many new jobs. During times like these, that’s good news.

The aviation industry has been well served by this legislation. The FAA is investing over a billion dollars in more than 300 projects – including repairs and upgrades to airport and air traffic control facilities, and equipment. It’s important to realize that this money isn’t just going to the biggest airports or the biggest cities. It’s also going to places like Grand Forks, North Dakota; Albany, New York; Columbus, Georgia; and Punta Gorda, Florida. These smaller cities really need the jobs the Recovery Act provides.

Just this week, we awarded over 3 million dollars to a municipal airport in Alabama that’s fixing its runway and to Baton Rouge for new safety and rescue equipment. We’ve also taken steps to shore up financing. In response to the credit crunch, the Recovery Act allows refunds on current general airport revenue bonds, as well as a two-year exemption to the AMT --Alternative Minimum Tax. As a result, several airports have been able to move ahead with plans to finance critical airport infrastructure – while saving millions in financing costs. Airports in Philadelphia, Nashville, Atlanta, Miami, the Washington, D.C. area and elsewhere are taking full advantage of this.

And here’s more good news:

 The American Recovery and Reinvestment Act is shining a spotlight on transportation systems and policy like never before – and that’s going to pay dividends for aviation. Congress, governors, the public, the media -- everybody has gotten the message that we need to invest more resources in all modes of transportation in this country, including aviation. And people understand we need to do a better job of balancing and connecting intermodal transportation on a regional basis – so that we can make each mode as safe, effective, and efficient as possible.

Think of it this way: The President’s commitment to investing in high-speed rail and Amtrak could help us decrease congestion at major metropolitan airports. Investing in public transit that takes people to the airport is also good for aviation consumers. The point is this:  The Recovery Act isn’t about letting some modes win, and some modes lose. It’s about getting us on a new path to ensure that our transportation infrastructure as a whole enhances our mobility, keeps us competitive, and uses cleaner and more sustainable energy.

Now let’s talk about DOT’s priorities for aviation. Clearly, NextGen will be one of Randy Babbitt’s highest priorities. The President’s next budget seeks 800 million dollars for the project.  But we cannot get there overnight. That said, we’ve already had some NextGen successes: UPS, Southwest, and Continental are all making critical upgrades, using digital weather information or GPS, for example. Going forward, we must leverage the upcoming FAA authorizing cycle to ensure there is adequate, sustained funding for this complex evolution. We’ll work with Congress to identify the best mechanisms for financing. For instance, we might create an infrastructure finance bank, or impose certain tax incentives or charges. More broadly, we’ll work with Congress to ensure that reauthorization helps to stabilize federal airport funding, and enable airports to raise capital for improvements.

We’re also committed to environmental sustainability. The aviation industry has a critical role to play in making our communities more livable – making them more accessible, more mobile, and with better air quality. We’ll work with Congress to implement NextGen’s energy goals to reduce emissions and lessen the adverse impact on communities from air traffic. That involves managing and mitigating congestion and delays, and streamlining the use of airspace – without losing safeguards.

Finally, ensuring that small and rural communities have access to air service is important. The President’s budget includes 175 million dollars for essential air service—the biggest funding level in years. This goes to the heart of what livable communities are all about.

In closing, I’m confident that aviation will not only recover from the current downturn, but emerge with an even greater commitment to innovation, efficiency, and sustainability. The DOT and the FAA will be your full partner as we continue to develop commercial aviation for the 21st century.

Thank you.