TECH TALK
effects for the key aviation sub- sectors.
INFRASTRUCTURE SPENDING/
AIRPORTS Throughout the campaign season, Trump promised to increase spending
on the country’s infrastructure (to the tune of $1 trillion in the coming decade), including our airports and transportation links (focusing on roads and bridges, but bemoaning airports on occasion). America truly needs a ‘refresh’ for much of
our infrastructure and this is one area where most politicians should support increased spending. This is positive news for airports which had been lobbying legislators to increase the passenger facility charge (PFC) cap to $8.50 from the current $4.50 (which was set in 2000) to fund improvements such as upgrading terminals, facilities and amenities for travelers. Opposition from the airlines and lawmakers alike has not allowed this to pass. The airport lobby has pointed out that airlines have benefited from newer ancillary fees, which they do not share in, while holding down revenues that airports seek. A recent article from IHS Jane’s
Airport Review indicates that the American Association of Airport Executives (AAAE) calculates that U.S. airports have a collective funding requirement of $75.7 billion over the next five years, in order to complete essential projects. The campaign promises concerning
public-private partnerships and private investments from tax incentives will make it interesting to see how such an approach will apply in regards to airports. Many airports are owned by local municipalities and will be hesitant to cede much control to outside interests — so while this is an area of need, vested political interests might hamper how private capital will be welcomed, if at all. This may one of the early tests
for President Trump, as his vision of having private companies team with airport authorities clashes with the vision of airports and their desire to increase passenger taxes instead (and thus maintaining their control), potentially pitting the federal government and large airlines against local governments and airports.
MILITARY/DEFENSE For the defense industry, Trump’s victory brings mixed blessings. We
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