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Definition: Airport and Airway Trust Fund
It was created in USA by the Airport and Airway Development revenue act of 1970. It was formed to finance aviation programs. The source of revenue for this fund is aviation related excise taxes on passengers, cargo and fuel. It is the major source of funding for U.S. Airport and Airways development and to carry out major improvements.
The U.S. Federal Aviation Administration derives its majority of funding from AATF. FAA derives some of its funding from General fund of U.S. treasury also. In FY 2015, Federal Aviation Administration derives 92.77% of its funding from the AATF. FAA is then responsible for the aviation operations, facilities and equipment, R&D and aid for the U.S. airports.
Some of the sources for the AATF are Domestic passenger ticket tax, Tax on international arrivals and departures and arrivals, Tax on domestic cargo etc. The majority of the funding for AATF comes from the transportation of passengers followed by the tax levied on the use of international air facilities.
In the beginning of FY 2015, the AATF had a cash balance amounting to $ 13.5 billion.