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Bankrkuptcies, Profits, Subsidies, expectations.

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[quote user="MidlandMike"] Sasm1, since it seems all of the legacy airlines have filed for some form of bankruptcy protection at some time, were some of the runway construction loans, fees, etc., not paid back? Also you mention some of the freight railroads were given gov't help in recent construction projects.  They pay fuel taxes to some states, and I now believe to the feds also.  Can't they expect this sort of help in return? [/quote] The airport authorities (owners) are responsible for covering the cost of the airports, including operating and capital costs.  They collect fees from a variety of users, i.e. gate fees, landing fees (airlines, general aviation and military), parking lot fees, vendor rentals, FBO rentals, etc.  When an airline goes belly up, thereby reducing operations, the airport authority may see an erosion of revenue, i.e. lower gate fees, landing fees, parking fees, etc.  In light American's filing for Chapter 11 protection, the rating agencies are looking at the bonds issued by the airports heavily impact by American, e.g. DFW, Miami, O'Hara, etc.   Whether the airports have to recapture the loans and grants from the FAA and ARRA depends on their conditions.  If they were loans, they have to be capitalized and recaptured.  On the other hand, if they were grants, they may not have to be recaptured.  The same applies to the railroads that have received ARRA funds for clearance projects and to replace high pollution locomotives with cleaner locomotives. The airlines and railroads pay federal fuel taxes.  They also pay state fuel taxes.  So too to truckers, bus operators and personal vehicle operators.  The taxes are part of the repayment mechanism deployed by the governments to recapture the aforementioned loans and grants.  Whether the carriers pay sufficient fuel taxes to pay back the loans and grants is unknown by me. The airlines pay a very low fuel tax (like several cents on the gallon) but it adds up to a lot of money because they burn heaps of it.  I don't know the fuel tax for the freight railroads.  Intercity bus operators and truckers pay 24.4 cents per gallon for diesel.  In addition, they have to pay the state tax on fuel for every state that they drive through, even is they don't buy fuel in that state.  For example, a trucker running from Charleston, SC to Jacksonville, FL, believe it or not, has to pay a fuel tax in Georgia even if he does not buy fuel in Georgia.
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