FAA SHUT DOWN OVER FUNDING IMPASSE

Dino D'Amore
By Dino D'Amore July 26, 2011 11:50

FAA SHUT DOWN OVER FUNDING IMPASSE

The impasse on Capitol Hill over reauthorizing funding for the Federal Aviation Administration (FAA) has forced the agency to close down temporarily with about 4,000 FAA employees — except air traffic controllers, test pilots and inspections workers – furloughed. As a result, the government has stopped collecting excise taxes on airline tickets. Some airlines, including Southwest/Air Tran and US Airways, are reported to have increased fares however and reports suggest they are keeping the difference.

JetBlue has posted an advisory posted on its website says those scheduled to fly on the airline within a week of the shutdown can request a refund via email; those flying after that period should check back to see what guidance is provided by the government.

The U.S. Department of Transportation said it will lose $200 million a week until Congress restores the taxes.

Dino D'Amore
By Dino D'Amore July 26, 2011 11:50
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