'Adds Insult To Injury' For Airlines And Customers

Airlines for America (A4A), the industry trade organization for the leading U.S. airlines, expressed strong opposition to a provision within the Senate-passed budget resolution, which immediately doubles, and eventually triples the TSA passenger security tax on the backs of the airlines, passengers and shippers, who collectively paid a record $2.3 billion in TSA taxes and fees last year and already pay more than their fair share of federal aviation taxes. The Senate passed the budget resolution last Thursday.

"Airlines and their passengers paid nearly $19 billion in federal taxes last year alone, and today roughly $61 of a typical $300 roundtrip ticket goes straight to Washington in federal taxes," said A4A President and CEO Nicholas E. Calio. "TSA's budget has increased 18 percent since 2007 while the number of passengers carried by U.S. airlines fell 4 percent. We believe there is opportunity to achieve greater efficiencies – without greater taxes – and we look to further partner with TSA and the Administration on expanding risk-based security options that improve safety, security and efficiency."

The budget resolution passed by the Senate doubles the TSA passenger security tax to $5 per one-way trip, and triples the tax to $7.50 per one-way trip by 2017, costing airlines and their customers $2.5 billion annually over the next ten years. A4A believes full implementation of programs that take a risk-based approach to security, such as TSA PreCheck for passengers and Known Crewmember for pilots and flight attendants will enhance security and screening efficiency and are a more appropriate way to help drive down TSA operating costs.

FMI: www.airlines.org