A united aviation industry coalition of nearly 30 organizations is opposing proposed tax increases, which would lead to significant job loss across all sectors of the industry and the U.S.
As part of its debt-reduction plan, the White House is proposing – and the Congressional Super Committee is now considering – two new initiatives on airlines and their passengers and general aviation. The first would add a new $100 departure tax – disguised as a fee – to all flights, and the second would double the existing passenger security tax to $5 per one-way trip in 2012, and triple the tax to $7.50 by 2017. The coalition of airlines, general aviation, manufacturers, consumer organizations and labor groups is sending a unified message to Congress to reject the proposed taxes.
“U.S. airlines, general aviation and aviation manufacturing companies and their respective employees face intense competition from the rest of the world. Our policymakers should be focused on increasing U.S. international competitiveness rather than viewing the industry as a collection agency,” said Air Transport Association President and CEO Nicholas E. Calio. “If we are to maintain global leadership and increase jobs in this country, we need to ensure that tax policy is focused on strengthening U.S. aviation leadership and furthering the safety and modernization of the aviation system.”
Helicopter Association International President Matt Zuccaro echoed safety concerns, saying, “Air traffic control exists to maintain safety, and imposing a fee for using ATC services in the name of deficit reduction puts money ahead of safety. Helicopter operators, like the rest of general aviation, already contribute to the aviation system through efficient pay-at-the-pump fuel taxes.”
A growing bipartisan group within Congress opposes the administration’s tax proposal. Nearly 120 members of the House of Representatives recently told congressional leadership that the $100 departure fee would have a “devastating impact on the aviation industry and fails to achieve our shared goal of improving the economy and creating jobs. The fee would cost airlines an estimated $1 billion a year.”
The letter also cites the devastating effect that the $100 per flight fee will have on general aviation: “Imposing such a fee would stifle the industry, as has been the case in other countries where user fees have been put in place. General aviation is an important contributor to our economy with 1.3 million jobs and $150 billion in economic activity every year.”
“The record is clear,” said Craig Fuller, president of the Aircraft Owners and Pilots Association (AOPA). “User fees imposed on any segment of the aviation industry tend to expand and grow. Such fees could cripple the general aviation community, which contributes $150 billion to the economy each year. The current funding system works. Let’s not try to fix what isn’t broken.”
To increase awareness and educate consumers and Congress, ATA recently launched a website, StopAirTaxNow.com, where visitors can urge Congress to reject punitive taxes and, at the same time, save American jobs and air service to their communities.
The industry coalition includes the following organizations:
- Aerospace Industries Association
- Aerospace States Association
- Air Carrier Association of America
- Air Line Pilots Association
- Air Traffic Control Association
- Air Transport Association
- Aircraft Electronics Association
- Aircraft Owners and Pilots Association
- Association of Flight Attendants
- Cargo Airline Association
- Consumer Travel Alliance
- Experimental Aircraft Association
- General Aviation Airport Coalition
- General Aviation Manufacturers Association
- Global Business Travel Association
- Helicopter Association International
- Interactive Travel Services Association
- International Air Transport Association
- International Association of Machinists and Aerospace Workers
- National Agricultural Aviation Association
- National Air Carrier Association
- National Air Transportation Association
- National Air Traffic Controllers Association
- National Association of State Aviation Officials
- National Business Aviation Association
- Recreational Aviation Foundation
- Regional Airline Association
- Transport Workers Union of America, AFL-CIO
