Manufacturing Industry

Bush administration formally warned by US airlines

Airline Industry Information, Feb 11, 2005

AIRLINE INDUSTRY INFORMATION-(C)1997-2005 M2 COMMUNICATIONS LTD

The Bush administration has received a formal warning from US airlines.

According to the warning, jobs would be in jeopardy and financially fragile airlines would be threatened if the White House proposal for passengers to pay a further USD1.5bn in aviation costs is implemented.

The airlines also warned the Bush administration that they would increase lobbying against the proposal in Congress, Reuters reported.

James May, CEO of the Air Transport Association, has said that the current government policies to impose excessive taxes on the airline industry are crippling a vital segment of the US economy. May reportedly expressed his view in a letter to the treasury secretary John Snow as well as to other administration officials. According to May, a fee increase could put as many as 20,000 jobs at risk and also threaten service to small communities.

The White House proposal means that in the 2006 budget there would be an increase of USD3 in the fee paid by travellers to a maximum of USD8 for one-way travel.

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COPYRIGHT 2005 M2 Communications Ltd.
COPYRIGHT 2008 Gale, Cengage Learning
 

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