Tuesday, March 1, 2016

FAA Reauthorization Update

Late last week news reports confirmed that U.S. House of Representatives Transportation Committee Chairman Bill Shuster's ambitious, but controversial version of the FAA Reauthorization bill has been abandoned. The Senate still intends to introduce a bill this month, but it is unlikely to include some of the far-reaching changes contemplated for the House Bill, most notably the privatization of air traffic control. FAA authorization expires March 31, and it is almost certain that a short-term extension will be required.

New York Senator Chuck Schumer announced plans to introduce an amendment to the forthcoming Senate Bill that would establish minimum seating requirements for passenger aircraft. The details of Senator Schumer's proposal are not yet known, but presumably they would include minimums for leg room and seat pitch. There is no identifiable market failure present that would make it necessary to regulate passenger comfort, passengers who desire increased leg room can easily express that preference by paying extra for a higher class seat, but measures like this are often politically popular. Nonetheless, I would be surprised to see the amendment included in the final bill.


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