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Highlights

Pursuant to a congressional request, GAO examined the proposal by a coalition of the seven largest U.S. airlines to replace the ticket tax with user fees, focusing on: (1) whether the ticket tax should be replaced by a different fee system; (2) what the potential competitive impacts of the fees proposed by the coalition airlines would be; (3) what factors need to be considered if a new fee system were to be developed; and (4) the implications on the Federal Aviation Administration's (FAA) budget of reinstating or not reinstating the taxes that finance the Airport and Airway Trust Fund.

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