FAA shutdown costs $30 million a day and 4,000 jobs

26 Jul 2011

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Washington: As the deadlock between US House and Senate leaders over raising the nation's debt limit continued, a partial shutdown of the Federal Aviation Administration took place as the aviation regulator's operating authority expired at midnight Friday.

This resulted in a partial shutdown of the agency, with dozens of airport construction projects across the country being put on hold and thousands of federal employees pushed out of work.

Additionally, the shutdown is costing the agency an estimated $30 million per day through failure to collect taxes.

However, air traffic controllers have continued to work, as well as FAA employees who inspect the safety of planes and test pilots. Senior officials said safety won't be compromised.

Meanwhile House and Senate leaders are locked in a dispute over a FAA spending bill which seeks to remove air service subsidies for 13 rural airports, a provision that Democrats find unacceptable.

Democrats also claim that the Republicans are trying to ram through a host of contentious provisions as part of a long-term FAA spending bill approved by the House in April. Among them a Republican proposal sought by industry that would make it more difficult for airline workers to unionize.

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