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Airlines Poised To Profit From FAA Shutdown

STEVE INSKEEP, Host:

NPR's Mandalit del Barco reports.

MANDALIT DEL BARCO: The Federal Aviation Administration has been partially shut down since July 23rd, when Congress failed to approve its funding. Thousands of FAA employees were furloughed, and the agency has not been collected $28.6 million a day in aviation taxes and fees. But most airlines haven't lowered their ticket prices.

ROBERT MANN: It's going to be a very lucrative period for airlines, much more so than they could ever have expected.

DEL BARCO: Retired airline executive and industry consultant Robert Mann says before the windfall, airlines lost $53 billion over the past decade due to the gloomy economy.

MANN: Having the fees relieved, what did they do? With the exception of the three airlines, Spirit, Alaska and Hawaiian, they just turned around and pocketed the money. There's a bit of hypocrisy in that. So I think their ability to go to the Hill from this point onward and argue that they're overtaxed has just been, essentially, gutted.

DEL BARCO: Mandalit del Barco, NPR News. Transcript provided by NPR, Copyright NPR.

As an arts correspondent based at NPR West, Mandalit del Barco reports and produces stories about film, television, music, visual arts, dance and other topics. Over the years, she has also covered everything from street gangs to Hollywood, police and prisons, marijuana, immigration, race relations, natural disasters, Latino arts and urban street culture (including hip hop dance, music, and art). Every year, she covers the Oscars and the Grammy awards for NPR, as well as the Sundance Film Festival and other events. Her news reports, feature stories and photos, filed from Los Angeles and abroad, can be heard on All Things Considered, Morning Edition, Weekend Edition, Alt.latino, and npr.org.