Air passenger fee hike may not fly

Fears of harming airline industry could ground proposal

WASHINGTON (CNN) -- House Appropriations lawmakers may lose an early bid to raise airline ticket fees to help cover the rising cost of aviation security, congressional sources Tuesday told CNN.

A proposal contained in legislation providing emergency assistance to the Transportation Security Administration would double the passenger security fee from $2.50 to $5 per leg of a trip, up to a maximum fee of $20.

But sources say there could be objections to such a hike for fear it could harm the commercial airline industry. These sources say the move to double the fees could be seen as "new" legislating, which is technically beyond the jurisdiction of an appropriations bill.

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Officials say the wording is likely to be taken out next week when the bill comes to the House floor. It is part of legislation proposing $4.4 billion in emergency assistance to the Transportation Security Administration (TSA).

House appropriators last month were told the new agency would run out of money by the end of May if it did not receive supplemental funding. It's responsible for federalizing passenger screening operations and meeting a congressional mandate to screen all checked bags for explosives.

The TSA started fiscal year 2002 with a budget of $2.3 billion, and was originally intended to be self-supporting through the passenger security fee.

But with a doubling in number of staff performing security screenings, and other security enhancements, a congressional aide said Monday that lawmakers now think that the price tag for a fully operational TSA could top $10 billion.

The Department of Transportation has requested $4.6 billion for its fiscal year 2003 budget.

The congressional aide said, even if the passenger security fee was increased to $5 per leg, it would raise only $2 billion.

Industry lands hard on fee hike

The airline industry has criticized the proposed fee increase.

"All of this is apparently being considered just as the summer leisure travel season is beginning and as airlines continue their efforts to stop the financial hemorrhaging they continue to experience from the events of September 11," Air Transport Association spokesman Michael Wascom said Monday.

David Stempler of the Air Travelers Association noted passengers were already loaded up with fees.

"There's a $7.50 domestic ticket tax, a $3-per-person, per-flight segment fee. Then there is a maximum of $18 in airport facility charges. And you've got the security fee -- now it could be up to $20," he said.

"So on a $200 ticket, you are looking at almost $55 of that as taxes. Over 25 percent of the ticket is taxes. And if you get a lower-priced ticket, it could almost be 50 percent of the cost," he said Monday.