Airlines issue warning about effects of new taxes
October 17, 2011|By Gregory Karp | Tribune reporter
Airlines with a big presence in Chicago say proposed new federal taxes aimed at reducing the federal budget deficit could cost jobs and limit flights to and from smaller markets in Illinois.
Airlines are among the least profitable industries in America and already pay 17 different taxes and fees, officials from United Airlines and American Airlines said Monday during an editorial board meeting with the Chicago Tribune.
âThe impact will certainly be felt here in Chicago and the state of Illinois,â said Will Ris, senior vice president of government affairs for American Airlines.
Some 10,000 airline industry jobs across the U.S. could be cut within a year as a result of the tax, according to the airline industry group Air Transport Association. Wider job losses â in aircraft manufacturing, airports and other supporting businesses â could total 181,000, the association claims.
Airline taxes proposed by the White House and being considered by a Congressional committee include a tax of $100 per take-off for both passenger and cargo flights. A second tax would be on airfares, doubling the current $2.50 passenger security tax to $5 and eventually â by 2017 â to $7.50.
So, for travelers whose airfares are already 20 percent taxes and fees, roundtrip fares might rise about $15, if the airlines passed through all of the taxes to consumers.
http://articles.chicagotribune.com/...can-airlines-airline-security-united-airlines
October 17, 2011|By Gregory Karp | Tribune reporter
Airlines with a big presence in Chicago say proposed new federal taxes aimed at reducing the federal budget deficit could cost jobs and limit flights to and from smaller markets in Illinois.
Airlines are among the least profitable industries in America and already pay 17 different taxes and fees, officials from United Airlines and American Airlines said Monday during an editorial board meeting with the Chicago Tribune.
âThe impact will certainly be felt here in Chicago and the state of Illinois,â said Will Ris, senior vice president of government affairs for American Airlines.
Some 10,000 airline industry jobs across the U.S. could be cut within a year as a result of the tax, according to the airline industry group Air Transport Association. Wider job losses â in aircraft manufacturing, airports and other supporting businesses â could total 181,000, the association claims.
Airline taxes proposed by the White House and being considered by a Congressional committee include a tax of $100 per take-off for both passenger and cargo flights. A second tax would be on airfares, doubling the current $2.50 passenger security tax to $5 and eventually â by 2017 â to $7.50.
So, for travelers whose airfares are already 20 percent taxes and fees, roundtrip fares might rise about $15, if the airlines passed through all of the taxes to consumers.
http://articles.chicagotribune.com/...can-airlines-airline-security-united-airlines
