Midnight Mike
2006-06-23, 10:28 PM
US lawmaker wants limits on A380 airport upgrades
Fri Jun 23, 2006 4:49 PM ET
WASHINGTON, June 23 (Reuters) - A senior Republican lawmaker influential on transportation matters said on Friday he wants Congress to prohibit U.S. airports from spending federal funds on upgrades to accommodate the European-made superjumbo Airbus A380.
"Until a U.S. airline chooses to acquire and operate the passenger version of the A380, foreign airlines that operate A380 passenger service to and from the United States should pay for any needed infrastructure improvements at the airports they serve," U.S. Rep. John Mica, a Florida Republican, said in a statement.
Mica is chairman of the House of Representatives transportation subcommittee on aviation.
About 50 percent of the cost for A380-related upgrades would be financed through federal airport grants. So far, Los Angeles (LAX), New York's John F. Kennedy, Miami and San Francisco are preparing for A380 passenger service. Several other airports are evaluating A380 passenger and cargo development to see if carriers they serve will fly it.
Airbus, a consortium based in France, has struggled with its schedule to deliver the $300 million double-decker aircraft to its foreign customers. The first plane is scheduled for later this year with six- to seven-month delivery delays expected after that. A380 customers include Australia's Qantas Airways, Dubai-based Emirates , China Southern, and Singapore Airlines.
The A380 is slated to be the biggest passenger jet ever flown with room to seat between 550 and 850 passengers, depending on its configuration.
Because of the A380's size -- a 262-foot wingspan and a maximum takeoff weight of 1.2 million pounds -- airports, in some cases, may have to widen runways and taxiways and restructure gate areas to handle more people.
Mica released findings of a Government Accountability Office report that estimated the cost to upgrade infrastructure at U.S. airports to accommodate the A380 could reach $927 million, if major work is required.
One airport industry executive called the GAO figure high and included costs that may never be required.
Also, prohibiting federal grants for A380 construction may hurt airports that need to make certain upgrades for existing customers anyway.
For instance, JFK is strengthening four bridges to support the A380 as well as the next generation Boeing jumbo jet, the 747-8 Intercontinental, that will also weigh more than 1 million pounds.
Mica's statement exploits a hot-button transatlantic political issue -- the role of European governments in the development of Airbus planes and how that affects business at its chief rival, Boeing Co. <BA.N>. It also taps into strong election-year "Buy America" sentiment in Congress.
Mica said in a statement that it was "patently unfair" for taxpayers to pay for A380-related airport upgrades in light of the help that Europe gives Airbus.
The Bush administration has challenged European government loans for Airbus that it says are illegal subsidies under global trade rules.
In a counter complaint, the European Union alleged that Boeing benefits from indirect subsidies ranging from state tax breaks to government research and development contracts.
Fri Jun 23, 2006 4:49 PM ET
WASHINGTON, June 23 (Reuters) - A senior Republican lawmaker influential on transportation matters said on Friday he wants Congress to prohibit U.S. airports from spending federal funds on upgrades to accommodate the European-made superjumbo Airbus A380.
"Until a U.S. airline chooses to acquire and operate the passenger version of the A380, foreign airlines that operate A380 passenger service to and from the United States should pay for any needed infrastructure improvements at the airports they serve," U.S. Rep. John Mica, a Florida Republican, said in a statement.
Mica is chairman of the House of Representatives transportation subcommittee on aviation.
About 50 percent of the cost for A380-related upgrades would be financed through federal airport grants. So far, Los Angeles (LAX), New York's John F. Kennedy, Miami and San Francisco are preparing for A380 passenger service. Several other airports are evaluating A380 passenger and cargo development to see if carriers they serve will fly it.
Airbus, a consortium based in France, has struggled with its schedule to deliver the $300 million double-decker aircraft to its foreign customers. The first plane is scheduled for later this year with six- to seven-month delivery delays expected after that. A380 customers include Australia's Qantas Airways, Dubai-based Emirates , China Southern, and Singapore Airlines.
The A380 is slated to be the biggest passenger jet ever flown with room to seat between 550 and 850 passengers, depending on its configuration.
Because of the A380's size -- a 262-foot wingspan and a maximum takeoff weight of 1.2 million pounds -- airports, in some cases, may have to widen runways and taxiways and restructure gate areas to handle more people.
Mica released findings of a Government Accountability Office report that estimated the cost to upgrade infrastructure at U.S. airports to accommodate the A380 could reach $927 million, if major work is required.
One airport industry executive called the GAO figure high and included costs that may never be required.
Also, prohibiting federal grants for A380 construction may hurt airports that need to make certain upgrades for existing customers anyway.
For instance, JFK is strengthening four bridges to support the A380 as well as the next generation Boeing jumbo jet, the 747-8 Intercontinental, that will also weigh more than 1 million pounds.
Mica's statement exploits a hot-button transatlantic political issue -- the role of European governments in the development of Airbus planes and how that affects business at its chief rival, Boeing Co. <BA.N>. It also taps into strong election-year "Buy America" sentiment in Congress.
Mica said in a statement that it was "patently unfair" for taxpayers to pay for A380-related airport upgrades in light of the help that Europe gives Airbus.
The Bush administration has challenged European government loans for Airbus that it says are illegal subsidies under global trade rules.
In a counter complaint, the European Union alleged that Boeing benefits from indirect subsidies ranging from state tax breaks to government research and development contracts.