Executive Briefings

Trade Group Pushes National Airline Policy, Starting with Elimination of Jet Fuel Tax

According to the trade group Airlines for America, U.S. airlines earned less than half a penny for every dollar of revenue generated in 2011, making for a second consecutive year of dismal profits. In fact, last year's combined profit of $390m represented a 86-percent free-fall when compared to 2010′s profits. The organization argued that the only way to turn this profit trend around is to create a national airline policy.

With the creation of a national airline policy, A4A president Nicholas Calio wants the U.S. government to pursue "a holistic approach that addresses the fundamental tax, regulatory and infrastructure challenges that consistently undermine this industry in the United States." This is the perfect time to address the issue, he said in a statement, because of the recent passage of a long-term reauthorization bill for the Federal Aviation Authority.

One of the first steps to increase profitability, according to the organization, is to eliminate the jet fuel tax, among other taxes. That would be a page out of the government of British Columbia's play book. The tax will be eliminated there April 1 in order to increase the flow of freight into the province.

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Keywords: Airlines for America, Federal Aviation Authority, Air Cargo, Transportation & Distribution, All Logistics, Legal, Govt. & Regulatory Issues, Global Supply Chain Management, Canada

 

According to the trade group Airlines for America, U.S. airlines earned less than half a penny for every dollar of revenue generated in 2011, making for a second consecutive year of dismal profits. In fact, last year's combined profit of $390m represented a 86-percent free-fall when compared to 2010′s profits. The organization argued that the only way to turn this profit trend around is to create a national airline policy.

With the creation of a national airline policy, A4A president Nicholas Calio wants the U.S. government to pursue "a holistic approach that addresses the fundamental tax, regulatory and infrastructure challenges that consistently undermine this industry in the United States." This is the perfect time to address the issue, he said in a statement, because of the recent passage of a long-term reauthorization bill for the Federal Aviation Authority.

One of the first steps to increase profitability, according to the organization, is to eliminate the jet fuel tax, among other taxes. That would be a page out of the government of British Columbia's play book. The tax will be eliminated there April 1 in order to increase the flow of freight into the province.

Read Full Article

Keywords: Airlines for America, Federal Aviation Authority, Air Cargo, Transportation & Distribution, All Logistics, Legal, Govt. & Regulatory Issues, Global Supply Chain Management, Canada