The effects of the Congressional stalemate that led to a partial shutdown of the Federal Aviation Administration took hold Monday, as about 336 employees in the metro Atlanta area were furloughed.
Air traffic controllers and safety inspectors continue working, but some other FAA operations have been shut down.
Although the partial shutdown means the FAA has stopped collecting about $200 million per week in airline taxes, many large carriers including Atlanta-based Delta Air Lines took the opportunity to hike fares and boost revenue, rather than granting travelers a tax holiday.
"Given the high cost of jet fuel, Delta has been competitive with other airlines that increased their base fares following the expiration of funding for the Federal Aviation Administration to adjust for the taxes no longer being collected," Delta said in a written statement.
Separately, the FAA said an annual $10 million grant due to Hartsfield-Jackson International Airport has been suspended, though a Hartsfield-Jackson spokesman said it wouldn't be an issue for the airport and the payment can be processed once the FAA bill is passed. The payment was the last installment to help cover costs for the airport's fifth runway, completed in 2006.
Atlanta Mayor Kasim Reed warned that Hartsfield-Jackson, the world's busiest airport, "is at risk of being impacted."
"We're seeing the first warnings about impacts on direct investments at Hartsfield-Jackson," Reed said. "I intend to be very aggressive with all the agencies that interact with Hartsfield-Jackson to ensure that our local interests are protected," as well as reaching out to Georgia's Congressional delegation, he said.
FAA said contractors have also been ordered to stop work on a number of FAA projects around the country such as the construction of new air traffic control towers. One project being halted is the construction and rehabilitation of restrooms at an FAA facility in Atlanta, work done by Peachtree Specialty Group on a $133,900 contract, according to the FAA.
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