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Aircraft Noise (13)
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16972779
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Aircraft Noise (13)
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James M. Cannon Files (Ford Administration)
James Cannon's Issues Files
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Aeronautics, Commercial
Aircraft
Noise
Regulatory reform
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1976
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1976
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The original documents are located in Box 2, folder "Aircraft Noise (13)" of the James M.
Cannon Files at the Gerald R. Ford Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald Ford donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
remain with them. If you think any of the information displayed in the PDF is subject to a valid
copyright claim, please contact the Gerald R. Ford Presidential Library.
Digitized from Box 2 of the James M. Cannon Files at the Gerald R. Ford Presidential Library
[ca.oct.1976]
CONGRESSIONAL
STATE
AIRPORT USE
LETTERS TO
SUPPORT OF
LEGAL
LAND ACQUISITION
OTHER
AIRPORT
RESTRICTIONS
CONGRESS
RETROFIT
ACTIONS
PROGRAMS
LEGAL Fl
ALABAMA
Birmingham
Yes
Yes
ALASKA
Anchorage
Yes
Yes
ARIZONA
Yes
Phoenix
Yes
CALIFORNIA
Yes
Sacramento
Yes
Hollywood Burbank
Yes
Santa Monica
Yes
Lindbergh Field
Yes
Yes
Yes
San Jose
Yes
Yes
Yes
Long Beach
Yes
Los Angeles International
Yes
Yes
Yes
Yes
Orange County
Yes
Yes
Yes
San Francisco
Yes
Oakland
Yes
Yes
Santa Maria
Yes
Van Nuys
Yes
Fresno
Yes
Yes
Stockton
Yes
COLORADO
GERALD
Yes
Stapleton International
Colorado Springs
R. FORD
Yes
Yes
CONNECTICUT
Hariford
LIBRARY
Yes
Bradley International
Yes
Danbury
Yes
Page 2
CONGRESSIONAL
STATE
AIRPORT USE
LETTERS TO
SUPPORT OF
LEGAL
LAND ACQUISITION
OTHER
AIRPORT
RESTRICTIONS
CONGRESS
RETROFIT
ACTIONS
PROGRAMS
LEGAL F
FLORIDA
Yes
Miami International
Yes
Yes
North Perry
Yes
West Palm Beach
Yes
Yes
Jacksonville
Yes
Yes
Pompono Airpark
Yes
GEORGIA
Atlanta
Yes
Yes
HAWAII
Yes
Maui
Yes
Pearl Harbor
Yes
General Lyman
Yes
IDAHO
Haily
Yes
ILLINOIS
Yes
Chicago O'llare
Yes
Howell
Yes
INDIANA
Yes
Weir Cook
Yes
Indianapolis
Yes
St. Joseph County
Yes
IOWA
Yes
KANSAS
Paolo
THE
Yes
Wichita
Yes
Page 3
CONGRESSIONAL
STATE
AIRPORT USE
LETTERS TO
SUPPORT OF
LEGAL
LAND ACQUISITION
OTHER
AIRPORT
RESTRICTIONS
CONGRESS
RETROFIT
ACTIONS
PROGRAMS
LEGAL
KENTUCKY
Yes
Bowman Field
Yes
Yes
Standaford Field
Yes
LOUISIANA
Yes
Shreveport
Yes
New Orleans
Yes
Yes
Yes
Mouroe
Yes
MAINE
Portland International
Yes
Yes
Bangor
Yes
MARYLAND
Yes
Baltimore
Pending
Yes
MASSACHUSETTS
Yes
Norwood
Yes
Yes
Barnes Field
Yes
Logan International
Yes
Yes
Yes
Yes
Beverly Airport
Yes
MICHIGAN
Yes
Flint
Yes
Willow Run
Yes
Detroit Metro
Yes
Yes
Yes
Yes
MINNESOTA
Yes
Minneapolis-St. Paul
Yes
Yes
Yes
Yes
Yes
Page 4.
CONGRESSIONAL
STATE
AIRPORT USE
LETTERS TO
SUPPORT OF
LEGAL
LAND ACQUISITION
OTHER
AIRPORT
RESTRICTIONS
CONGRESS
RETROFIT
ACTIONS
PROGRAMS
LEGAL FE
MISSOURI
Yes
St. Louis International
Yes
Yes
Yes
Yes
Springfield Municipal
Yes
MONTANA
Yes
NEBRASKA
Lincoln
Yes
Epply Airport
Yes
NEVADA
Yes
Reno
Yes
Yes
Yes
NEW HAMPSHIRE
Yes
NEW JERSEY
Yes
Newark
Yes
NEW MEXICO
Albuquerque
Yes
NEW YORK
Yes
Kennedy
Yes
LaGuardia
Yes
McArthur Field
Yes
Stewart
Yes
Albany County
Yes
Buffalo International
Yes
Yes
Chemung County
Yes
Westchester County
Yes
NORTH CAROLINA
LISTE FORD
Yes
Douglas Municipal
Yes
Yes
Yes
Page 5
CONGRESSIONAL
STATE
AIRPORT USE
LETTERS TO
SUPPORT OF
LEGAL
LAND ACQUISITION
OTHER
AIRPORT
RESTRICTIONS
CONGRESS
RETROFIT
ACTIONS
PROGRAMS
LEGAL
OIIIO
Yes
Akron
Yes
Yes
Yes
Cleveland
Yes
Yes
Cincinnati
Yes
Yes
OKLAHOMA
Tulsa International
Yes
Riverside
Yes
Ardmore Downtown
Yes
Wiley Post
Yes
OREGON
Portland
Yes
Yes
PENNSYLVANIA
Yes
Philadelphia International
Yes
Eire International
Yes
Allentown
Yes
North Philadelphia
Yes
Wings Field
Yes
RHODE ISLAND
Yes
SOUTH CAROLINA
Charleston
Yes
SOUTH DAKOTA
Joe Foss Field
Yes
TENNESSEE
Yes
Memphis International
Yes
Shelby
Yes
Yes
Page 6
CONGRESSIONAL
STATE
AIRPORT USE
LETTERS TO
SUPPORT OF
LEGAL
LAND ACQUISITION
OTH
AIRPORT
RESTRICTIONS
CONGRESS
RETROFIT
ACTIONS
PROGRAMS
LEG
TEXAS
Yes
Dallas-Ft. Worth
Yes
Tradewind
Yes
Houston
Yes
Y
WEST VIRGINIA
Yes
WASHINGTON
Scattle-Tacoma
Yes
Yes
Yes
Y
Pasco
Yes
VERMONT
Yes
VIRGINIA
Yes
Dulles
Yes
Washington National
Yes
Yes
Yes
Patrick llenry
Yes
WISCONSIN
Yes
Rock County
Yes
LaCrosse Municipal
Yes
Watertown Municipal
Yes
Timmerman Field
Yes
General Mitchell Field
Yes
70
[oct.
Page 9
I think it was in the late
spring of 1975. It was quoted in the paper. It was
reaffirmed by the reporter that talked to him. I happen
to believe that newspaper account of what he said rather
than a denial, which I don't believe was the fact. So,
even when you pin him down he varies, I think, from an
accurate answer. I could have used stronger language, but --
QUESTION: Mr. President, I am Commissioner of
Airports of LAX and several others. In August of this
year, Secretary Coleman made a recommendation to OMB
relative to noise abatement programs as it affects retrofit
and the phasing out of the aircraft.
Are you going to be prepared to give us an answer
prior to November 2 as to what we can expect on noise
abatement in LAX?
THE PRESIDENT: I have spent a great deal of
time with Secretary Coleman in the last month on just that
question, and I have also spent a good bit of time with
others within the Administration. And let me give you some
idea of what the problem is as well as what the solution
might be.
I don't want to preempt precisely what we are
going to do. But the problem is that there are about 25
airports in this country where there is a noise problem. It
involves roughly 6 million people who live adjacent to or
within the area of those airports. The noise standards
that were established by FAA, as I recall about two years
ago, required that all new aircraft that are going to use
those, or any airports in this country, must meet those
standards.
Under that kind of a program, as I recall, it will
take 8 to 10 years to go through the whole cycle of abandoning
those present planes that don't meet the standards and
replacing them with planes that do meet the standards. I
am very concerned that we have not been tougher in this regard.
Now when you say that, in effect you are saying
that today we are going to impose on all aircraft who use
our many, many airports in this country the same standards,
the new ones as well as those that are unable to meet the
problem, which, if you did it today, would force the aircraft
industry to replace, as I recall, roughly two-thirds of their
present fleet.
Now the commercial airliners say that under their
restrictions imposed on their ticket cost they cannot go into
a program that permits them immediately to buy the aircraft
that would meet this problem. They say that the CAB won't
give them enough price relief.
So the answer is one of two approaches -- either
we get the regulatory reform that I recommended to the Congress
which would force the CAB to permit certain price adjustments
in their fares without going through a lengthy process
before the CAB and, if they got that relief, if Congress
stood up and passed the regulatory reform that I recommended,
then the CAB and the industry itself, would have the capability
of meeting the problems that they face in financing the
procurement of the two-thirds of the planes that don't
meet the noise standards.
MORE
Page 10
Now, the other option. At the present time,
there is an 8 percent Federal tax on commercial plane
tickets. That money goes into an aircraft, into an airport
trust fund. That trust fund presently has a surplus.
There is a suggestion that that be reduced
from 8 percent to 6 percent, and that a financing plan
be worked out that would take that 2 percent and permit
the airlines to immediately be a beneficiary of that so
that they could buy more modern aircraft more quickly. It
is very complicated but it is a solution.
So, when you come down to it we are in the
process of making a final decision as to whether we should
-- well, the alternatives are Congress must pass the
regulatory reform that gives the industry itself an
opportunity to meet the problem or, if Congress will sit
on its hands, as it has in other regulatory reform
proposals, if they won't take the one option, then I think
the other option is a necessity because I am not going to
tolerate an 8-to 10-year program of trying to solve the noise
problem at airports, the 26 -- Los Angeles, La Guardia,
Kennedy, O'Hare, and the others.
It is not right to the 6 million people when
we have a better answer, either regulatory reform on the
one hand or a financing program as I have suggested on the
other.
QUESTION: Mr. President, I am a reservist
with the Strategic Air Command. I can tell the B-52s
will not go another ten years. When are we going to get
the B-1?
THE PRESIDENT: I made a speech on that point
yesterday out at the Rockwell plant, and I made precisely
the point you are talking about. The B-52s today are
an integral part of our three-pronged strategic programs
for the defense of this country.
We need high-performance, long-range aircraft.
We need our land-based ballistic missile systems. We need
our submarine-launched ballistic missile systems.
We are improving our land-based programs with
the MARK-III, and we are moving into the MX missile
development. We are building the Trident submarine to
replace the present nuclear-powered ballistic missile
submarine. But, we cannot permit the 25-year-cld B-52g to
continue for another 10 or 15 years.
As I said yesterday, I am not going to permit
pilots to fly in aircraft which is older than the pilots
themselves. And that is what you do if you go on with the
B-52. The B-1 has met every test, not only as to performance
but as to cost. And I am very much opposed to those who want
to cancel it or delay it and, unfortunately, Mr. Carter, in
the form that he espouses, either wants to delay it or cancel
it.
I think we owe something to the young people who
are called upon to fly those aircraft to give them the best
equipment that this country can buy.
MORE
[ca.oct.1976]
26 NOISY AIRPORTS
Memphis, Tennessee
Tampa, Florida
Ft. Lauderdale, Florida
Boston, Massachusetts
Chicago, Ill. (O'Hare)
New York City (JFK)
Los Angeles, California
Minneapolis-St. Paul
Phoenix, Arizona
San Francisco, California
Washington, D.C. (National)
Anchorage, Alaska
West Palm Beach, Florida
Honolulu, Hawaii
Las Vegas, Nevada
San Juan, Puerto Rico
Oakland, California
San Jose, California
Atlanta, Georgia
Buffalo, New York
Denver, Colorado
New York City (LaGuardia)
Miami, Florida
Newark, New Jersey
San Diego, California
Seattle, Washington
Worst Six Airports
Kennedy
La Guardia
Newark
Chicago - O'Hare
Boston
Los Angeles
FORD
LIBRARY
[oct.1976]
QUIET SKIES
(Appropriate Salutation)
We have assembled here at
Airport
today so that I could speak with you about two important
and related national problems.
And in the process I am going to discuss a real-
life case study of what is wrong with Washington --- and
what must be done about it.
The first of these two national problems is aircraft
and airport noise -- and I will today announce a plan to
reduce the noise pollution around this and other major
airports in the Nation.
The second problem is the need to ensure that the
continue
to
200 million Americans who fly every year have the finest
possible airline service. I will today describe the
measures necessary to make certain that the American
consumer will be served by a healthy and competitive
FORD
system of commercial airlines.
LIBRARY
-2-
Both of these problems and their resolution affect
your lives, your jobs, your environment, your property,
your future and your children's future, and the well-being
and progress of the Nation.
For some 6 million Americans who live and work
around 100 major airports in the U.S., the noise of jet
planes is a very real and personal environmental problem.
I know, because I used to live near Washington National AiRport,
and sometimes the noise was so bad you could not read a
newspaper, hear the T.V., or finish a conversation with
the children.
For these 6 million Americans the problem of noise
is getting worse as air travel increases -- and we want
air travel to increase.
But we must also end the noise problem.
FORD & LIBRARY
Since the 1960's, when the airlines introduced new
jet airplanes into the fleet, noise has been recognized
as a major constraint to commercial aviation. Through
research and development, by the government and by private
industry, we have learned how to make jet engines quieter,
and more efficient in fuel use. The technology is ready.
-3-
We have taken the first steps to reduce
the noise around airports. In 1969 the Federal Aviation
Administration, one of the two Federal agencies that
regulate the commercial airlines -- I know you are
aware that Congress feels the airlines are so important
that you need two Federal regulatory agencies to tell
you what to do -- in 1969 the FAA issued standards that
real
would cut in half the ( perceived noise of new jet aircrafts,
effective at the start of 1975.
rearly
For the last two years, all commercial planes
coming off the assembly lines in the United States have
met these standards.
But the FAA did not act to correct the biggest
part of the airport noise problem --- some 1600 older jet
airplanes, or about 77 percent of the U.S. commercial
airlines fleet.
These planes are still flying; and if you live near
this or any other major airport in the United States,
you are still listening to them.
FORD is GERALD LIBRARY
-4-
Why, seven years after the FAA set aircraft noise
standards, are these noisy planes still flying?
The answer, very simply, is that FAA knew that
some of the airlines could not afford to pay for modifying
or replacing their older planes to meet the new noise
standards.
Why not? One reason, frankly, is that some of the
airlines have not been well-managed.
But another important reason airlines could not
afford to pay for noise reduction is that the Civil
Aeronautics Board, the other Federal agency that regulates
the airlines, could not look ahead and provide the
revenues the airlines would need to pay for noise reduction.
The CAB is like that mythical bird which flew back-
ward and knew where it had been, but not where it was going.
Under their own regulations for setting airline fares,
sepresent
CAB looks backward at "historic, costs," but not ahead to
realistic future costs.
-5-
The CAB was created almost 40 years ago to promote
and assist a young and hopeful airline industry. There
were reasons then to allocate routes, set fares, and limit
competition; at the beginning, the public need for good
service required extensive government involvement to assure
orderly growth of the airlines.
It is different now.
When the CAB began in 1938, domestic airlines carried
a total of 1.3 million passengers, for 476 million passenger
miles.
FORD LISBANY
This year, U.S. airlines will carry more than 200
million passengers, for 128 billion passengers miles -- a
growth of 26,800 percent. Airlines now carry more people
between cities than any other form of public transportation.
The airline industry is no longer an infant; it is
mature, big and fully capable of prospering in a free,
open and competitive market.
It was for this reason that on October 8, 1975, I
proposed to the Congress the Aviation Act of 1975, which
-6-
would have reduced economic controls, opened markets,
reduced fares and made it possible for all airlines
to better serve the American consumer.
My objective was to work with the Congress to continue to
ensure that the U.S. will have the most efficient airline
system in the world, providing the American public with
the best possible service at the lowest possible cost.
That was 11 months ago; but neither the House nor
the Senate has acted on this important legislation, which
is the first comprehensive updating of airline regulation
passed
in almost forty years. Nor has Congress proposed any
alternative.
FORD & GERALD LIBRARY
However, the blame does not all rest on Congress.
Some airline executives, and their Washington lobbyists,
have short-sightedly opposed this change. While they say
publicly they are for free enterprise and open competition,
they have privately lobbied against open competition, against
the American consumer, and in fact against greater opportunity
for the growth and prosperity of their airlines.
-7-
Consequently, we have this situation:
Too Much Noise:
The FAA, by not moving on noise standards, has
shown a lack of decisiveness that must be changed.
Outdated Regulations:
The CAB, by following policies and procedures
that are impractical and out of date, is clearly
unable to assist the airlines in providing the best
and cheapest service to the public.
Congressional Inaction:
The Congress, by its failure to act on aviation
regulatory reform, is continuing a critical economic
problem for the airlines and all the people who work
for airlines and depend on them.
FORD LIBRANT
As President, I cannot tolerate inaction any longer.
We must end the noise pollution around American airports
and bring quiet skies back to America again.
We must free aviation from arbitrary and unnecessary
restrictions and regulations so that the airlines themselves
can pay the cost of noise abatement.
-8-
To do this, I am taking the following actions:
First, I am today directing the Secretary of Trans-
portation to instruct the Administrator of FAA to extend
its noise regulations to all U.S. commercial aircraft, to
be phased in over an 8-year period.
Second, I am putting the Congress on notice that I
will not accept its inaction. Congress must adopt the
airline regulatory reform measure I proposed in 1975.
Congress must act on this reform in the interest of the
American public.
I want the members to know now that aviation regu-
latory reform will be on their doorstep when they come
back in January.
Third, I propose that the present Federal tax on
domestic passenger fares be reduced from 8 percent to
6 percent, and on domestic freight, be reduced from 5 percent
to 3 percent. This tax on the consumer is now going to
the Airport and Airway Trust Fund to provide Federal
assistance to airport construction and improvement. There
is now a surplus of $1.4 billion in this fund. Passengers
have a right to this tax reduction.
-9-
However, if the Congress does not act on regulatory
reform for the airlines within 60 days after the new session
opens, I shall have no choice but to propose the reimposition
of that 2 percent as an environmental surcharge on passenger
fares and freight bills. The funds from the surcharge
would be directed into a special trust fund, administered
by the Secretary of Transportation, to assist the airlines
in financing the new and quieter planes that are necessary
for the abatement of aircraft noise around our major airports.
I do not want to call for this environmenal surcharge
on passengers. Regulatory reform is a far better solution.
But if Congress does not act on the aviation regulatory
reform I proposed last October, there has to be another
alternative.
Even then, an environmental surcharge would be a
temporary expedient -- not a permanent solution to the
real problem facing the airlines and other over-regulated
industries in this country.
Such a surcharge would help end the noise problem. But
it will not change the CAB's outdated methods of setting fares
and controlling markets. It will not improve an airline's
ability to compete and provide better service.
-10-
The lasting solution is to give the free enterprise
system its best chance to operate.
The genius of the American economic system throughout
our history has been a partnership between government
and free enterprise. The right role of the government
in the American economic system is to help private enter-
prise accomplish needed objectives for the American people -
and not to hinder private enterprise.
Our national growth in 200 years has been phenomenal,
and in no area of our lives has the partnership between
government and private enterprise worked better than in
transportation.
In the National Transportation Policy Statement of
my Administration of September 17, 197 we said:
"Transportation has substantially shaped the
growth and development of the United States.
Waterways led our ancestors to new frontiers.
Today, our energy-efficient inland waterways and
merchant marine seek out new markets. Railroads
-11-
fed the hearths of an industrial revolution and
now have renewed significance in the era of environ-
mental and energy consciousness. Highways made
us the most mobile population on earth, profoundly
altered our land use patterns, and established the
automobile, truck and bus as an important part of
the Nation's mobility and economic activity. Mass
transit provided the lifeline to city centers and
now offers hope for their revival. Civil aviation
extended its reach around the globe and helped
design the interdependent world in which we now
live. General aviation has greatly increased
business and pleasure mobility and opened up formerly
unreachable territories. Pipelines are vital to
energy independence.
"To sustain and enhance our economic vitality
and growth, the productivity of our commerce and
the quality of our leisure, we need a healthy and
responsive transportation system. National trans-
portation policy must serve these broad goals of
our society by helping to guide the development,
financing and maintenance of a safe, efficient,
accessible and diverse transportation system. Such
-12-
a system should meet the needs of all Americans --
as passengers, consumers, employees, shippers and
investors -- in a way that is consistent with
other national objectives. The values and priorities
of our society are changing as the land on which
we live is changing, and transportation must blend
with other national goals in seeking heightened
quality in the American way of life." "
We have set our national goals for what is and what
must continue to be the best airline system in the world.
By working together we can reach those goals.
Thank you.
[oct. 1976]
QUIET SKIES
(Appropriate Salutation)
We have assembled here at
Airport
today so that I could speak with you about two important
and related national problems.
And in the process I am going to discuss a real-
life case study of what is wrong with Washington -- and
what must be done about it.
The first of these two national problems is aircraft
and airport noise --- and I will today announce a plan to
reduce the noise pollution around this and other major
airports in the Nation.
The second problem is the need to ensure that the
200 million Americans who fly every year have the finest
possible airline service. I will today describe the
measures necessary to make certain that the American
consumer will be served by a healthy and competitive
FORD
system of commercial airlines.
LIBRARY
-2-
Both of these problems and their resolution affect
your lives, your jobs, your environment, your property,
your future and your children's future, and the well-being
and progress of the Nation.
For some 6 million Americans who live and work
around 100 major airports in the U.S., the noise of jet
planes is a very real and personal environmental problem.
I know, because I used to live near Washington National AIRPORT,
and sometimes the noise was so bad you could not read a
newspaper, hear the T.V., or finish a conversation with
the children.
For these 6 million Americans the problem of noise
is getting worse as air travel increases -- and we want
air travel to increase.
But we must also end the noise problem.
Since the 1960's, when the airlines introduced new
jet airplanes into the fleet, noise has been recognized
as a major constraint to commercial aviation. Through
research and development, by the government and by private
industry, we have learned how to make jet engines quieter,
and more efficient in fuel use. The technology is ready.
-3-
We have taken the first steps to reduce
the noise around airports. In 1969 the Federal Aviation
Administration, one of the two Federal agencies that
regulate the commercial airlines -- I know you are
aware that Congress feels the airlines are so important
that you need two Federal regulatory agencies to tell
you what to do - in 1969 the FAA issued standards that
would cut in half the perceived noise of new jet aircrafts,
if
effective at the start of 1975.
For the last two years, all commercial planes
coming off the assembly lines in the United States have
met these standards.
But the FAA did not act to correct the biggest
part of the airport noise problem -- some 1600 older jet
airplanes, or about 77 percent of the U.S. commercial
airlines fleet.
These planes are still flying; and if you live near
this or any other major airport in the United States,
you are still listening to them.
-4-
Why, seven years after the FAA set aircraft noise
standards, are these noisy planes still flying?
The answer, very simply, is that FAA knew that
some of the airlines could not afford to pay for modifying
or replacing their older planes to meet the new noise
standards.
Why not? One reason, frankly, is that some of the
airlines have not been well-managed.
But another important reason airlines could not
afford to pay for noise reduction is that the Civil
Aeronautics Board, the other Federal agency that regulates
the airlines, could not look ahead and provide the
revenues the airlines would need to pay for noise reduction.
The CAB is like that mythical bird which flew back-
ward and knew where it had been, but not where it was going.
Under their own regulations for setting airline fares,
CAB looks backward at "historic costs," but not ahead to
realistic future costs.
GERALD FORD LIGRARY
-5-
The CAB was created almost 40 years ago to promote
and assist a young and hopeful airline industry. There
were reasons then to allocate routes, set fares, and limit
competition; at the beginning, the public need for good
service required extensive government involvement to assure
orderly growth of the airlines.
It is different now.
When the CAB began in 1938, domestic airlines carried
a total of 1.3 million passengers, for 476 million passenger
miles.
This year, U.S. airlines will carry more than 200
million passengers, for 128 billion passengers miles -- a
growth of 26,800 percent. Airlines now carry more people
between cities than any other form of public transportation.
The airline industry is no longer an infant; it is
mature, big and fully capable of prospering in a free,
open and competitive market.
It was for this reason that on October 8, 1975, I
proposed to the Congress the Aviation Act of 1975, which
-6-
would have reduced economic controls, opened markets,
reduced fares and made it possible for all airlines
to better serve the American consumer.
My objective was to work with the Congress to
ensure that the U.S. will have the most efficient airline
system in the world, providing the American public with
the best possible service at the lowest possible cost.
That was 11 months ago; but neither the House nor
the Senate has acted on this important legislation, which
is the first comprehensive updating of airline regulation
in almost forty years. Nor has Congress proposed any
alternative.
However, the blame does not all rest on Congress.
Some airline executives, and their Washington lobbyists,
have short-sightedly opposed this change. While they say
publicly they are for free enterprise and open competition,
they have privately lobbied against open competition, against
the American consumer, and in fact against greater opportunity
for the growth and prosperity of their airlines.
-7-
Consequently, we have this situation:
Too Much Noise:
The FAA, by not moving on noise standards, has
shown a lack of decisiveness that must be changed.
Outdated Regulations:
The CAB, by following policies and procedures
that are impractical and out of date, is clearly
unable to assist the airlines in providing the best
and cheapest service to the public.
Congressional Inaction:
The Congress, by its failure to act on aviation
regulatory reform, is continuing a critical economic
problem for the airlines and all the people who work
for airlines and depend on them.
As President, I cannot tolerate inaction any longer.
We must end the noise pollution around American airports
and bring quiet skies back to America again.
We must free aviation from arbitrary and unnecessary
restrictions and regulations so that the airlines themselves
can pay the cost of noise abatement.
-8-
To do this, I am taking the following actions:
First, I am today directing the Secretary of Trans-
portation to instruct the Administrator of FAA to extend
its noise regulations to all U.S. commercial aircraft, to
be phased in over an 8-year period.
Second, I am putting the Congress on notice that I
will not accept its inaction. Congress must adopt the
airline regulatory reform measure I proposed in 1975.
Congress must act on this reform in the interest of the
American public.
I want the members to know now that aviation regu-
latory reform will be on their doorstep when they come
back in January.
Third, I propose that the present Federal tax on
domestic passenger fares be reduced from 8 percent to
6 percent, and on domestic freight, be reduced from 5 percent
to 3 percent. This tax on the consumer is now going to
the Airport and Airway Trust Fund to provide Federal
assistance to airport construction and improvement. There
is now a surplus of $1.4 billion in this fund. Passengers
have a right to this tax reduction.
-9-
However, if the Congress does not act on regulatory
reform for the airlines within 60 days after the new session
continuation
opens, I shall have no choice but to propose the reimposition
of that 2 percent as an environmental surcharge on passenger
fares and freight bills. The funds from the surcharge
would be directed into a special trust fund, administered
by the Secretary of Transportation, to assist the airlines
in financing the new and quieter planes that are necessary
for the abatement of aircraft noise around our major airports.
I do not want to call for this environmenal surcharge
on passengers. Regulatory reform is a far better solution.
But if Congress does not act on the aviation regulatory
reform I proposed last October, there has to be another
alternative.
Even then, an environmental surcharge would be a
temporary expedient -- not a permanent solution to the
real problem facing the airlines and other over-regulated
industries in this country.
Such a surcharge would help end the noise problem. But
it will not change the CAB's outdated methods of setting fares
and controlling markets. It will not improve an airline's
ability to compete and provide better service.
-10-
The lasting solution is to give the free enterprise
system its best chance to operate.
The genius of the American economic system throughout
our history has been a partnership between government
and free enterprise. The right role of the government
in the American economic system is to help private enter-
prise accomplish needed objectives for the American people --
and not to hinder private enterprise.
Our national growth in 200 years has been phenomenal,
and in no area of our lives has the partnership between
government and private enterprise worked better than in
transportation.
In the National Transportation Policy Statement of
my Administration of September 17, 1976 we said:
"Transportation has substantially shaped the
growth and development of the United States.
Waterways led our ancestors to new frontiers.
Today, our energy-efficient inland waterways and
merchant marine seek out new markets. Railroads
FORD LIBRARY
-11-
fed the hearths of an industrial revolution and
now have renewed significance in the era of environ-
mental and energy consciousness. Highways made
us the most mobile population on earth, profoundly
altered our land use patterns, and established the
automobile, truck and bus as an important part of
the Nation's mobility and economic activity. Mass
transit provided the lifeline to city centers and
now offers hope for their revival. Civil aviation
extended its reach around the globe and helped
design the interdependent world in which we now
live. General aviation has greatly increased
business and pleasure mobility and opened up formerly
unreachable territories. Pipelines are vital to
energy independence.
"To sustain and enhance our economic vitality
and growth, the productivity of our commerce and
the quality of our leisure, we need a healthy and
responsive transportation system. National trans-
portation policy must serve these broad goals of
our society by helping to guide the development,
financing and maintenance of a safe, efficient,
accessible and diverse transportation system. Such
-12-
a system should meet the needs of all Americans --
as passengers, consumers, employees, shippers and
investors --- in a way that is consistent with
other national objectives. The values and priorities
of our society are changing as the land on which
we live is changing, and transportation must blend
with other national goals in seeking heightened
quality in the American way of life.' #
We have set our national goals for what is and what
must continue to be the best airline system in the world.
By working together we can reach those goals.
Thank you.
[oct. 1976
on wour of funes
w w r
apon -
moned upot to
P 60 days
often layne
Return 70
He mi party
to fund
LIBRACY GERALD ? FORD
JOBS in California
or writington
[oct.1976]
Noisy U.S. Airports (ranked in order of number of people
affected by severe or serious aircraft noise).
1.
LaGuardia, New York
2.
Chicago (O'Hare), Illinois
3.
J. F. Kennedy, New York
4.
Newark, New Jersey
5.
Boston, Massachusetts
6.
Los Angeles, California
7.
Miami, Florida
8.
Denver, Colorado
9.
Cleveland, Ohio
10.
San Francisco, California
11. Seattle, Washington
12. Buffalo, New York
13. St. Louis, Missouri
Additional Noisy Airports (not ranked, numbered for con-
venience only, are) :
14. Atlanta, Georgia
15. San Diego, California
16. Oakland, California
17. Washington, D.C. (National)
18. San Jose, California
19. Tampa, Florida
20. Memphis, Tennessee
21. Ft. Lauderdale, Florida
22. Honolulu, Hawaii
23. Phoenix, Arizona
24. West Palm Beach, Florida
25. Las Vegas, Nevada
26. Anchorage, Alaska
27. San Juan, Puerto Rico
28. Minneapolis-St. Paul, Minnesota
29. Baltimore, Maryland
30. Detroit, Michigan
31. Salt Lake City, Utah
32. Louisville, Kentucky
33. Albuquerque, New Mexico
34. Ontario, California
35. Palm Springs, California
FORD is LIBRARY
[oct.1976]
STATEMENT OF THE PRESIDENT
ON AIRCRAFT NOISE
Aircraft noise around airports is a substantial annoyance for
six to seven million Americans. The problem is particularly serious
at some of the major airports, such as those in New York, Los
Angeles, Boston, Atlanta and Chicago. In fact, it represents a
significant or potential problem for residents living near many other
airports across the nation, and as air travel increases, noise will
become a serious problem at some of these other airports as well.
Cities like San Jose, San Francisco, Miami, Denver, San Diego, Seattle
and Phoenix are under increasing public pressure to take steps to
reduce aircraft noise. In fact, the Federal Aviation Administration
has identified 100 airports where noise is a problem.
Citizen complaints, law suits for noise damages and proposed
restrictions on airport use have begun to threaten the efficiency and
viability of the interstate air transportation system.
During the past six weeks I have reviewed extensively the aircraft
noise problem. I have considered the recommendations of Secretary
of Transportation William T. Coleman, Jr., Federal Aviation
Administrator John L. McLucas, EPA Administrator Russell E. Train
and many other federal, state and local officials concerned with the
effect of aircraft noise on people in areas surrounding our major airports.
FORD LIBRARY
2
I have become acutely aware of the seriousness of this problem
and have reached the following conclusions:
1. The aggravation and annoyance of aircraft noise are a
nationwide problem that can be addressed only by the joint efforts
of government, airport operators and industry, working together
cooperatively. If each of us performs the responsibilities
for which we are uniquely suited under a comprehensive policy to
reduce aircraft noise, we can and will achieve measured progress
in improving the quality of life for airport neighbors.
2. We have the technological capability to bring about
significant reductions in aircraft noise emissions. Our major
constraint has been the economic condition of the carriers which
has prevented the rapid introduction of quieter technology and
the development of new airplanes that will provide even greater
noise reduction benefits. Because of this economic problem,
77 percent of the civil aviation fleet operating today does not
meet the present federal noise standard for new subsonic
aircraft. This is intolerable. We must take action not only to
quiet or retire the noisy aircraft but also to accelerate their
replacement with new quieter technologies that will bring
3
additional benefits in noise reduction, fuel efficiency and new
technology. To be effective, this action requires that we also
address the issue of how the results which are now possible
technologically may be financed.
3. In considering the serious and complex problem of aircraft
noise, I am aware of many interrelated problems that must be
addressed simultaneously. These problems include:
- - the financial and regulatory constraints on the ability of our
air carriers to purchase new, quieter airplanes;
- - the inadequate utilization of technological and employment
capability in the aeronautical manufacturing industry;
- - the lost potential for substantial energy conservation improve-
ments by the delayed introduction of new more fuel efficient
aircraft;
- - the importance to the national interest of maintaining U.S.
leadership in providing aeronautical products for the rest
of the world in light of increasing European competition;
and
- - the need to reduce aircraft noise levels so as to minimize
the necessity for airport operators to impose curfews and
4
other restrictions on the use of airports that interfere
with the efficiency of interstate travel.
In reviewing these problems, I have considered the recommendations
of members of my Cabinet and staff, and I have directed that the
following action be taken:
1. Within ten days the Secretary of Transportation will publish
a comprehensive aviation noise policy. That policy will set
forth why the solution to the noise problem in this country must
be a joint effort by federal, state and local governments, airport
operators, air carriers and aircraft manufacturers. It will
include a statement of the responsibilities of each and a specific
plan and timetable for federal action that will ensure that the
federal government meets its statutory obligations to reduce noise
by promulgating regulations that have been delayed too long.
2. I am directing the Federal Aviation Administrator, in
consultation with the Secretary of Transportation, to promulgate
within two weeks a regulation that will require domestic commercial
aircraft to meet present federal noise standards in accordance
with a phased-in time schedule, not to exceed eight years. I am
5
further directing the Federal Aviation Administrator, in
consultation with the Secretary of Transportation, to promulgate
by the end of this year a new federal noise regulation that will
establish new, tougher standards for new subsonic technology
aircraft.
3. I have directed the Secretary of State to initiate negotiations
with the International Civil Aviation Organization and the European
Civil Aviation Conference to bring about international agreement
on noise standards for all international aircraft operations into
the U.S. If agreement is not reached within four years, we will
begin to apply U.S. standards to foreign aircraft unilaterally.
4. I have directed the Secretary of Transportation to provide
special financial and technical assistance to airport operators
to help them develop comprehensive noise abatement plans, to
assist them in the acquisition of buffer land and purchase of
noise suppressant equipment, and to assure that the land around
airports is zoned and developed in ways that are compatible
with airport operations.
5. I will ask the Congress to reduce by 2 percentage points
the domestic ticket and freight waybill taxes, thereby releasing
GERALD FORD LIBRARY
6
the excess tax revenues that are presently unused by the Airport
Development Aid Program and enabling the air carriers to pay
the costs of meeting these new environmental standards without
increasing the cost of air travel to the consumer. My tax
reduction proposal will be included in a revised Aviation Reform
Act that I will submit to Congress before the start of the next
session. Thus, the Administration's continued support for this
tax reduction will be conditioned on Congressional acceptance
of aviation regulatory reform.
6. I have directed the Secretary of Transportation to consider
in an open public hearing what financing provisions are necessary
to ensure that the air carriers can meet the noise requirements.
The Secretary will consider what sort of special financing provisions
should be established in addition to the reduction of the ticket tax
I have proposed (whether, for example, a special surcharge of 2%
should be imposed to provide revenues that could be used to help
secure necessary financing for the replacement of the noisy
aircraft and, if so, how such revenues should be dispersed).
In formulating a financing proposal, the Secretary shall consult
with consumers, representatives of industry and other concerned
7
parties, and shape his proposal to meet the following criteria:
- - financing measures should be available to assure that noise
regulations meet the statutory test of "economic reasonable-
ness;"
- - financing should be consistent with and help advance the
cause of aviation regulatory reform;
- - the cost of environmental improvements should be met by
the user, not the general public;
- - any special financing provisions should involve minimum
government interference with investment decisions in the
private sector and should be equitable among the carriers;
- - the cost of air travel to the consumer should not be increased
as a result of the program.
7. This proposal will make possible the replacement of most of
the 500 oldest, noisiest four-engine jets still in commercial
operation. It will enable further the quieting, and in some cases
replacement, of most of the approximately 1,000 newer, less
noisy jets that do meet federal standards.
8. Before the next session of Congress begins, I will submit
to the Congress a revised Aviation Reform Act that will provide--
8
in addition to the removal of unnecessary regulatory constraints
on pricing, entry and routes a provision that will make possible
the generation of sufficient private sector financing to meet the
federal noise requirements and achieve other important national
benefits, including:
- - reduction of the number of Americans exposed to serious
aircraft noise impacts by about 1 million;
- - reduction of the annoyance, inconvenience, discomfort, and
mental distress caused by aircraft noise for all who live or
work near airports;
- - the creation of 240 thousand new jobs in the aerospace industry;
- - the production of new generation of U.S. manufactured
airplanes--presently stalled at the design stage--offering
the advantages of new design and safety technology, and
enabling U.S. manufacturers to respond to the projected
worldwide demand for a new generation of airplanes in
1978-84;
- - substantial energy savings by improvements up to 30% in
fuel efficiency, the more rapid introduction of the quietest
engines now technologically possible--engines less than
half as loud as the noisy jets they would replace;
GERALD 3
9
- - better air service to the American traveler with lower
operating costs and prices in airplanes designed to service
many markets more economically.
A nationwide effort to reduce aircraft noise represents a commit-
ment to a better quality of life for millions of Americans. We will
replace the chaos, confusion and conflict that has all too often
characterized the noise reduction effort thus far with firm federal
leadership and close cooperation with the airport operators, the carriers
and the people adversely affected by aircraft noise. Through our
continuing efforts to develop quieter aircraft, by our requirement that
noisier aircraft be quieted or replaced, and with our financial and
technical assistance to airport operators, we will bring about a sub-
stantial reduction in the impact of aircraft noise on our fellow citizens,
and at the same time create new jobs and improve the efficiency and
competitive position of our air carriers and aerospace manufacturers.
[oct. 1976]
Camon
Possible Presidential Actions
1977
P
Direct Secretary Coleman to instruct FAA to extend
Jan
1,1976
noise standards to all domestic commercial aircraft.
W18
go
PI
Put Congress on notice that it must adopt airline
yrs
regulatory reform early in the next session.
III. If Congress does not act on regulatory reform, then
the President will send legislation to:
-- reduce federal tax by 2%
Jry
-- impose a 2% environmental surcharge, with the
90 days
money going into a trust fund to assist the
airlines in financing the new planes that meet
noise standards.
LOBS in speech
1130
77% rockots
Mitur
date - effecture Inguing 8yrs
fleit
Jan 1917. Thereft
FORD i GERALD LIBRARY
haved In wourd on the made a to an
meantin rea economic Min
t.
Insert on page 8
If the Congress does not act on regulatory reform for
the airlines within 60 days after the new session opens,
then I must act to make certain that the airlines can meet
noise standards and at the same time continue to be a
PROVIDING V.
healthy and competitive industry serving 200 million Amer-
icans.
Therefore, if Congress fails to act on Aviation Regu-
latory Reform by March 5, 1976, I shall send Congress legis-
lation that would to -
-- Reduce the present Federal tax on domestic passenger
fares from 8 percent to 6 percent;
DOMESTIC
-- Reduce the present Federal tax on freight from 5 per-
cent to 3 percent; and
-- Impose a 2 percent environmental surcharge on all
passenger fares and freight bills.
-
FORD & LIBRARY GERALD
Insert on page 8
If the Congress does not act on regulatory reform for
the airlines within 60 days after the new session opens,
then I must act to make certain that the airlines can meet
noise standards and at the same time continue to be a
healthy and competitive industry serving 200 million Amer-
icans.
Therefore, if Congress fails to act on Aviation Regu-
latory Reform by March 5, 1976, I shall send Congress legis-
lation that would --
-- reduce the present Federal tax on domestic passenger
fares from 8 percent to 6 percent;
-- reduce the present Federal tax on freight from 5 per-
cent to 3 percent; and
-- impose a 2 percent environmental surcharge on all
passenger fares and freight bills.
FORD is LIBRARY
avitation
THE WHITE HOUSE
INFORMATION
WASHINGTON
October 2, 1976
MEMORANDUM FOR THE PRESIDENT
FROM:
JIM CANNON
SUBJECT:
California Jun Trip/Aircraft Noise
Two of the airports you will be using on your forth-
coming trip (Los Angeles International on October 7,
and Hollywood-Burbank on October 8) have serious
aircraft noise problems.
Specific information will be included in your briefing
book, but I wanted you to know that these two airports
have serious noise problems; and Hollywood-Burbank has
obtained a court order temporarily suspending the
application of these noise standards in order to permit
the airport to remain open.
Meanwhile there has been a modest boom in aircraft buying.
The attached article from Business Week points out that
Boeing's orders are up, at least temporarily. Sales at
McDonnell Douglas and Lockheed are still lagging.
Attachment
FOCD LIBHART
Airlines give Boeing
a one-shot boom
After years of struggling with excess
capacity, U.S. domestic airlines are
suddenly buying airplanes again. So far
this year, American, Braniff, Delta,
Northwest, Western, Southwest, and
even ailing Eastern have ordered 77 new
jetliners-compared with only 29 planes
purchased by domestic carriers in all of
1975. This week, directors of United
Airlines are expected to approve the
year's biggest buy: as many as 25 Boeing
727s, worth nearly $300 million. That
will be the first time United has ordered
new airplanes since 1968.
The jump in orders stems largely from
a healthy rise in air traffic-up 10.7% so
far this year-that has boosted profits
for many airlines, helping to pay for new
Boeing's Boullioun: Glad to have orders
planes as well as increasing confidence
but still worried about future business.
in their ability to fill them.
New orders. The order flurry is spreading
planes. The fact that airlines are now
the greatest joy in Seattle, home of
buying planes indicates they do not need
Boeing Co., which has won all but 15 of
government help, he argues.
this year's domestic orders. On the home
United Airlines points out that its new
front at least, 1976 is shaping up as
727s are strictly to replace old planes,
Boeing's best new-order year of the
not to anticipate growth. As air traffic
1970s-topping the 1972 peak of 85
grows, United expects to hit a major
planes sold to domestic carriers. Boeing's
capital problem in expanding its fleet by
rising domestic backlog will bolster its
the early 1980s, says President Richard
sales and profits in 1977 and 1978, when
J. Ferris. Moreover, the U.S. airlines are
most of this year's orders will be
still far from able to help manufacturers
delivered.
launch their proposed next-generation
However, Boeing executives are not as
airplanes (BW-Apr.12).
joyful as outsiders might expect. E. H.
Nonetheless, this year's order bulge is
Boullioun, president of Boeing Commer-
a welcome sight to the airplane makers,
cial Airplane Co., sees this year's orders
who have limped along for several years
as "a one-shot, short-term kind of thing"
primarily on foreign business. "Our
that is not enough to sustain either his
salesmen are beginning to be optimis-
company or the airline industry. U.S.
tic," says an official at McDonnell
carriers should be replacing around 10%
Douglas Corp. "People are starting to
of their fleets each year, he says-5% to
look at planes who weren't looking at
retire old planes and 5% to cover
them before." McDonnell Douglas has
expected traffic growth-"and we're not
not enjoyed Boeing's boom but has
anywhere near that."
managed to sell 12 planes to domestic
Boullioun is particularly fearful that
carriers this year vs. two last year. One
this year's spate of orders may jeopar-
potential customer is United, which is
dize future business by persuading
considering buying some more DC-10
Washington regulators that the airline
jumbo jets this year.
industry is healthy again. That could
The 727 sells. Lockheed Aircraft Corp. is
ease pressures for fare increases and
still the industry laggard. But it has sold
route rationalizations that would in turn
three L-1011 TriStars to a domestic
help pay for future airplanes, he argues.
carrier this year-Delta. Last year, it
"I'm really worried that a flurry of
sold none.
orders now may take our eyes off the
Nearly all the domestic orders Boeing
ball," he says.
is winning are for its workhorse 727, a
Traffic up. Indeed, Washington attitudes
medium-range, medium-size trijet that
may be changing. One Administration
fits the frugal budgets and modest
source sees the current bulge in domestic
growth outlook of the airlines. Boeing
airplane orders as a "potent argument"
has sold 1,317 of the $11 million
against a proposed $3.6 billion escrow
airplanes, making it the top-selling
fund to help the airlines meet tighter
airliner of all time. Only 313 of Boeing's
noise regulations by retrofitting quiet
jumbo 747s have sold (at a present $30
engines on old planes or buying new
million price).
CLEARANCE SHEET
DATE: 10-1-76
1976 OCT 2 AM 9 10
JMC ACTION
Required by:
STAFF RESPONSIBILITY HOPE
SUBJECT: Briefing (Information) Memorandum for the President
Aircraft Noise
RECEIVED FROM:
DATE RECEIVED:
STAFF COMMENTS:
your
QUERN / MOORE RECOMMENDATION:
APPROVE
Jim,
As me discussed
REVIEW & COMMENT
DISCUSS
Arder
CANNON ACTION:
DATE:
Material Has Been:
Signed and forwarded
Changed and signed
FORD is LIBRARY 07V839
Returned per conversation
Noted
JIM CANNON
Comment:
100115
INFORMATION
THE WHITE HOUSE
WASHINGTON
October 1, 1976
MEMORANDUM FOR:
JIM CANNON
FROM:
JUDITH RICHARDS HOPE JRH
SUBJECT:
President's Forthcoming
Trip to California
The attached memorandum to the President on aircraft noise
is pursuant to your request.
GENATE FORD
Aircraft Noise
THE WHITE HOUSE
WASHINGTON
October 4, 1976
1976 UCT 5 M 8 28
ADMINISTRATIVELY CONFIDENTIAL
MEMORANDUM FOR:
JIM CANNON
FROM:
JIM CONNOR JEE
SUBJECT:
Aviation Noise Proposal
by Secretary Coleman
The President reviewed your memorandum of September 29
on the above subject and made the following notations:
"Very good except it doesn't include the
Coleman plans as an alternative if Congress
doesn't act.
It should be spelled out. Talk with Bill
Coleman and add to the text so I can have
something on my return. 11
Please follow-up with appropriate action.
FORD
cc: Dick Cheney
INFORMATION
THE WHITE HOUSE
REQUEST
WASHINGTON
October 5, 1976
MEMORANDUM FOR:
JIM CANNON
FROM:
JUDITH RICHARDS HOPE JRH-
SUBJECT:
Aircraft Noise Proposal
I attach for your consideration a draft paragraph which
would expand on the Coleman plan as an alternative if Congress
does not act.
Attachment
FORD is LIBRARY
DRAFT
My plan will ensure that, within the next decade, there will
be a significant reduction of aircraft noise levels around
the nation's airports. It will also stimulate the development
of a new generation of U.S. -manufactured aircraft, helping
us to maintain our number one place in the international
aviation marketplace. It will promote and increase the
number of permanent jobs in our vital aerospace industry.
This proposal also promotes the critical fuel conservation
goals my Administration has set for this country because the
new, quieter planes are 25 percent to 40 percent more fuel
efficient.
FORD LIZBARY
REQUESTED
THE WHITE HOUSE
WASHINGTON
October 6, 1976
MEMORANDUM FOR:
JIM CANNON
FROM:
JUDITH RICHARDS HOPE
SUBJECT:
Aviation Noise Proposal by
Secretary Coleman: Additional
Considerations
1. The proposed plan currently presents this option: either
enact regulatory reform with a 2% cut in the airline ticket
tax, or the President will be forced to impose a 2% en-
vironmental surcharge to fund a DOT-administered aircraft
replacement program. This "don't throw me in the briar
patch" alternative may only serve to intensify the aviation
industry's opposition to regulatory reform: they oppose it
now and, with an added incentive of a $3 billion plus
replacement fund if it's defeated, they may be expected to
intensify their opposition.
We should consider having the incentives run in favor of our
Aviation Act: Amend the Aviation Act itself to make the
noise proposal part of it, and create an omnibus air bill,
much like the rail bill signed in February. Then, the
longer Congress delays enactment, the longer people will
have to suffer aviation noise and the longer the airlines
will have to delay major investments for new equipment.
This approach is consistent with the assumptions on which
our regulatory reform effort is based: our Act is phased
over an 8-year period to take account of the dislocations
which would occur with a precipitous change in the reg-
ulatory climate. The need for the Act rests on several
premises including the expectation that fares would be
lowered, and the realization that the CAB fare structure has
been partly responsible for the carriers' poor financial
condition--hence their severe capital shortage. Providing a
temporary noise fund would help redress the damage from four
decades of Federal regulation of prices and routes.
2. As noted earlier, I feel the 56,000 FAA employees should
not be criticized for delay in setting noise standards. They
have done so because of their awareness of the burden the
standards would impose on the industry as well as DOT's
requests that the matter be subject to careful study and
cost-benefit analyses.
GERRCO FORD LIBBARY