ATA CEOs Letter to Senate Leadership Opposing PFC Increase in FAA Reauthorization

Commercial aviation helps drive more than 10M American jobs and 5 cents of every dollar of U.S. GDP
Commercial aviation drives more than $1 trillion per year in economic activity
In 2012, U.S. airlines moved more than 48,000 tons of cargo per day
In 2012, the value of a kilogram of U.S. merchandise exported by air averaged 121 times the value exported by sea
For every 100 airline jobs, some 360 are supported outside of the airline industry
Federal taxes constitute $61 – or 20% – of the price of a typical $300 domestic round-trip ticket
In 2011, U.S. airlines carried 16 percent more passengers and cargo using 10 percent less fuel than in 2000
Domestically, airlines drive 5% of economic activity but account for 2% of man-made GHG emissions
From 2000-2011, airlines reduced GHG emissions by 11% while transporting 16% more passengers and cargo
From 1975-2011, U.S. airlines and their partners reduced significant noise exposure by 99%
Commercial air travel is the safest form of intercity transportation in the United States
In the most recent decade, scheduled air service on U.S. airlines was seven times safer than in the 1970s
From 2000-2012, U.S. airlines improved the on-time arrival rate from 72.6% to 81.9%
From 2000-2012, U.S. airlines reduced the flight cancellation rate sharply from 3.30% to 1.29%
Airfares are a bargain: From 2000-2012, U.S. CPI rose 33% while average domestic fare rose just 13%
Adjusted for inflation, the average round-trip domestic airfare fell 15% from 2000
2007 domestic flight delays cost the United States approximately $31 billion
In 2012, the value of U.S. merchandise exported by air reached an all-time high of $427B
In 2012, U.S. exports of air-travel services reached an all-time high of $39.5B, driving a $5.1B trade surplus
In 2012, U.S. passenger and cargo airlines spent more than $50B on fuel, averaging 36% of operating expenses
In 2012, U.S. airlines posted the lowest annual rate of mishandled baggage ever recorded
FAA projects U.S. air travel demand to top 1 billion passengers in 2027
In 2012, US airlines flew 83.4 million passengers in scheduled international service - a record high
In 2012, the total value of merchandise exported from or imported to the United States by air exceeded $927 billion
In 2012, 7.15 teragrams of merchandise was exported from or imported to the United States by air

	ATA CEOs Letter to Senate Leadership Opposing PFC Increase in FAA Reauthorization
	PubZone1 May 13, 2010 The Honorable John D. Rockefeller Chairman, Committee on Commerce, Science and Transportation United States Senate 531 Hart Senate Office Building Washington, DC 20510 The Honorable Kay Bailey Hutchison Ranking Member, Committee on Commerce, Science and Transportation United States Senate 284 Russell Senate Office Building Washington, DC 20510 The Honorable James L. Oberstar Chairman, Committee on Transportation and Infrastructure House of Representatives 2165 Rayburn House Office Building Washington, DC 20510 The Honorable John Mica Ranking Member, Committee on Transportation and Infrastructure House of Representatives 2165 Rayburn House Office Building Washington, DC 20515 Dear Chairman Rockefeller, Ranking Member Hutchison, Chairman Oberstar and Ranking Member Mica: As you continue your discussions to resolve differences between the House and Senate versions of the Federal Aviation Administration (FAA) reauthorization bill, we write to strongly urge you not to include in the final bill an increase in the passenger facility charge (PFC) tax or any weakening of the eligibility criteria. The House-passed bill includes an increase in PFCs from $4.50 to $7 per segment, and also expands the eligibility criteria for PFC projects. This increase would be harmful and is unnecessary. Based on estimates from the Government Accountability Office (GAO), a PFC increase from $4.50 to $7 maximum could mean $2 billion more in taxes per year. The House-proposed increase represents a 55 percent increase over today’s levels, and would result in an additional $112 in taxes being imposed on travel by a family of four. As you know, the Senate bill does not include any mandatory PFC tax increase. The PFC tax increase would raise travel costs, thereby harming both consumers and the travel/tourism industry. Commercial airlines in the United States today generate over $1.1 trillion in economic activity, and the industry is responsible for 10.2 million U.S. jobs. We are proud of our contribution to the nation’s economy; however, a PFC tax increase would threaten that contribution, and for no justifiable reason. Airports collected $23 billion in revenues in 2008, and the FAA estimates that PFC collections (based on the current $4.50/segment fee) will produce a record $2.8 billion this year. Airports also have filed financial reports with the FAA indicating that they have available up to $21 billion of unrestricted financial assets. The recently passed Economic Stimulus legislation provided an additional $1.1 billion in airport improvement projects, $1 billion in airport security equipage and additional relief through Alternative Minimum Tax liability reduction. Airports certainly cannot make the case that they are struggling financially. In contrast, airline revenues declined by $31 billion in 2009, and travel levels have been declining – in part as a result of the struggling national economy. To help stem these losses, airlines have reduced capacity and employment. One in every three airline jobs has been lost since 2001, with almost 40,000 layoffs just since 2008. Especially as difficult economic conditions persist, the airline industry and passengers cannot afford higher taxes that inhibit growth and add additional costs for consumers. Rather than impose an unnecessary tax that will do nothing to reduce delays and congestion in our nation’s airspace, we urge you to continue your efforts to replace our outdated, inefficient air traffic control system. These improvements will reduce inefficiencies in air travel without imposing unnecessary and unjustified tax increases. We appreciate your consideration of our thoughts, and look forward to continuing to work with you and the other members of Congress to assure the safe, convenient and efficient operation of our nation’s air system. Sincerely, Robert Fornaro Chairman, President and CEO AirTran Airways Bill Ayer Chairman and CEO Alaska Airlines, Inc. Gerard J. Arpey Chairman, President and CEO American Airlines, Inc. US Airways Group, Inc. Jeff Smisek Chairman, President and CEO Continental Airlines, Inc. Richard Anderson CEO Delta Air Lines, Inc. Mark B. Dunkerley President and CEO Hawaiian Airlines, Inc. Dave Barger President and CEO JetBlue Airways Corporation Gary Kelly Chairman, President and CEO Southwest Airlines Co. Glenn F. Tilton Chairman and CEO United Airlines, Inc. W. Douglas Parker Chairman and CEO US Airways Group, Inc. PubZone2	A4A advocates measures to support aviation safety, security and well-being.