James May: "The U.S. Airlines Are Fully Behind ... This Strong Set Of Reforms"

AirTran and the Air Transport Association (ATA) said at a  Tuesday news conference they support legislation introduced by U.S. Senator Blanche Lincoln, (D-AK), to "limit excessive speculation in the oil markets" and "put Main Street's interests ahead of Wall Street's."

Several other senators, including Maria Cantwell, (D-WA), have praised the bill as one that would bring strong derivative regulation to an otherwise unchecked market.

The bill posits that Wall Street traders artificially drive up prices of heating oil, gasoline, diesel, and jet fuel through unchecked speculation in ways not associated with regular supply and demand fundamentals in order to reap billions of dollars of financial rewards. These traders have absolutely no plans of ever taking delivery of these products. At the same time, the American consumer is negatively impacted by this unnatural volatility and is forced to pay higher prices for these commodities as well as goods and services in associated industries, including air travel.

"The rampant and unregulated speculation in this commodity has crippled and handicapped the U.S. airline industry while severely impacting the U.S. consumer. We need to let supply and demand determine what consumers pay, not speculators in an unregulated environment," AirTran Airways Chairman, President and Chief Executive Officer Bob Fornaro said during the news conference.

"If we do not control the fuel price spikes and volatility, our nation's economic recovery will stall," added ATA President and CEO James C. May (pictured, below).

May said that the price of a barrel of crude oil is 78 percent higher than just one year ago, with volatility driven by excessive speculation. "In 2008, we used the same amount of fuel as we did in 2003 - but it cost us $42 billion more," said May. "Senator Lincoln's bill will make the financial and energy markets more transparent and stable, help prevent manipulation and unacceptable risk-taking. The U.S. airlines are fully behind Senator Lincoln and this strong set of reforms, as she has chosen Main Street's values over Wall Street's greed," he said.

FMI: www.airlines.org, www.airtran.com