ATA Letter Requesting Antitrust Immunity for International Airline Alliances

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 14%
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 Letter Requesting Antitrust Immunity for International Airline Alliances
	PubZone1 June 16, 2009 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 Byron L. Dorgan Chairman, Subcommittee on Aviation Operations, Safety and Security United States Senate 322 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 Jim DeMint Ranking Member, Subcommittee on Aviation Operations, Safety and Security United States Senate 340 Russell Senate Office Building Washington, DC 20510 Dear Chairman Rockefeller, Ranking Member Hutchison, Chairman Dorgan and Ranking Member DeMint: I am writing to ask for your support of antitrust immunity for international airline alliances. As you know, grants of immunity for international alliances – made after careful review by the Department of Transportation (DOT) – lead to more choices and lower fares for consumers, more competition among airlines, more job opportunities for airline employees, more revenue and lower costs for U.S. airlines, and more airline service to communities of all sizes in the United States. As the DOT and numerous studies have recognized, immunized alliances have added a substantial number of new nonstop flights, providing travelers with access to new destinations and more frequent and better timed flights between communities; created more frequent and convenient connecting flights; improved the experience of travelers connecting on flights of two or more alliance partners; and lowered fares on many flights. This has increased the number of passengers flying on the alliance carriers and, in turn, contributed to the creation of approximately 15,000 U.S. airline jobs and increased aviation’s economic importance locally, regionally and nationally. Given these significant benefits, it is not surprising that immunized airline alliances enjoy widespread public support. This is illustrated by the overwhelming support for the two immunity applications currently before the DOT (the application involving Star Alliance airlines, and the application involving oneworld Alliance airlines) and the SkyTeam immunity application, which was approved by DOT last year. The public dockets for these applications include expressions of support from elected officials, community and civic leaders from nearly every state, including1: 56 U.S. Senators 226 Members of Congress 51 Governors and Lieutenant Governors 151 Mayors, County Officials and other City Leaders 158 Airports 153 Chambers of Commerce/Economic Development Organizations/Visitors Bureaus For many years, DOT has carefully reviewed applications for antitrust immunity. Applications have been approved only upon a finding that a grant of immunity would be in the public interest. In such cases, the immunity remains in effect unless DOT determines that circumstances have changed to warrant a reexamination or compliance questions arise. The House-passed version of FAA reauthorization legislation includes language that would reverse this long-standing process and prematurely terminate antitrust immunity grants to airline alliances. The Air Transport Association strongly opposes that language, which will harm consumers, airlines (including their employees and shareholders), the travel and tourism industry, and the local, regional and national economies. Arbitrarily terminating antitrust immunity – even temporarily – will cause significant harm. The traveling and shipping public will lose service options and see higher fares. Airlines that relied in good faith on the valid exercise of DOT authority could lose the millions of dollars they invested in developing and integrating alliance operations. Without alliances, airline employees could lose as many as 15,000 jobs. And all of this would cause a ripple effect across the economy. For these reasons, we respectfully request your recognition of, and support for, the benefits of international airline alliances and ask that you reject, in the strongest possible terms, the approach taken in the House reauthorization bill. Sincerely, James C. May President and CEO cc: The Honorable Ray LaHood The Honorable Eric Holder The Honorable Larry Summers [1]The full list of supporters is attached PubZone2	A4A advocates measures to support aviation safety, security and well-being.