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Federal Budget to Bite Further Into Aviation Operations:

A little-publicised item in the August Budget has revealed that the Federal Government is to phase out entirely its contribution to the safety contract that it promised when originally establishing the CAA.

The commitment to aviation safety operations will be phased out over a period of three years. As the 1988/89 allocation for this sector was a not insubstantial $71. 4m, it is now possible that the aviation community will have to fund this shortfall of as much as $100m a year (’93/94 dollars adjusted for inflation) via higher charges.

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