ATA Letter on DOD Pursuit of Contracting Authority for Alternative Fuels

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 Letter on DOD Pursuit of Contracting Authority for Alternative Fuels
	PubZone1 May 25, 2010 The Honorable Carl Levin Chairman, Committee on Armed Services United States Senate 269 Russell Senate Office Building Washington, DC 20510 The Honorable Ike Skelton Chairman, Committee on Armed Services House of Representatives 2206 Rayburn House Office Building Washington, DC 20515 The Honorable John McCain Ranking Member, Committee on Armed Services United States Senate 241 Russell Senate Office Building Washington, DC 20510 The Honorable Howard P. “Buck” McKeon Ranking Member, Committee on Armed Services House of Representatives 2184 Rayburn House Office Building Washington, DC 20515 Re: DOD Pursuit of Long-Term Contracting Authority for Alternative Fuels Dear Chairman Levin, Ranking Member McCain, Chairman Skelton and Ranking Member McKeon: It is our understanding that the U.S. Department of Defense (DOD) is pursuing long-term contracting authority from Congress for alternative fuels and renewable energy, with a particular aim of being able to engage in contracts of up to 20 years. On behalf of the members of the Air Transport Association of America, Inc. (ATA), I write to support this DOD request. The granting of such authority would be a great step forward toward the deployment of alternative aviation fuels, not only for our nation’s military but also in commercial use by U.S. airlines. ATA is the principal trade and service organization of the U.S. airline industry with its members and affiliates collectively representing more than 90 percent of all U.S. airline and cargo traffic. ATA members are strong supporters of a comprehensive U.S. energy policy that will simultaneously enhance U.S. energy security and price stability while promoting improved environmental performance. Alternative jet fuels are a critical component of this package, consistent with ATA co-founding the Commercial Aviation Alternative Fuels Initiative (CAAFI) in 2006. ATA energy policy states unequivocally that our members “are dedicated to the development and deployment of safe, environmentally friendly, reliable and economically feasible alternatives to conventional petroleum-based jet fuel.” The capitalization of alternative-fuels projects is especially challenging given the volatility of petroleum prices and the state of the financial markets. Public policy has a key role to play in helping industry, and the airlines in particular, meet our goals for the purchase and consumption of significant amounts of synthetic and renewable energy. In addition to the expansion of federal crop insurance to include next-generation biofuel feedstocks and the multiyear renewal of the dollar-per-gallon green fuels tax credit, the awarding to DOD of long-term contracting authority for renewable energy, up to 20 years, represents a critical step to bridge the so-called “valley of death” for alternative aviation fuels. If granted, the U.S. military could join airlines in long-term offtake agreements. While the airlines boast the larger volumes, they simply lack the financial wherewithal and creditworthiness to consummate enough transactions on their own. Recognizing the essential role and synergy of the U.S. armed services in advancing alternative energy deployment, on March 19, 2010, the airlines, through ATA, signed a Strategic Alliance for Alternative Fuels with the Defense Energy Support Center (DESC). The airline industry and DOD collectively require more than 1.5 million barrels of jet fuel per day. By collaborating, we are better positioned to explore cooperative market engagement for fuel, improve the financial prospects for alternative fuels infrastructure, accelerate fuel certification efforts and refine our methodology for determining environmental impacts. The airlines’ support of the Defense Department’s pursuit of long-term contracting authority is an obvious and necessary step to advance the mutual energy and environmental interests of our alliance. While additional public policy efforts are needed, we recognize that this one resides within your immediate jurisdiction. Accordingly, we urge you to grant the DOD request. Please do not hesitate to contact me if you require additional information on the ATA alternative-fuels initiatives. Sincerely, James C. May PubZone2	A4A advocates measures to support aviation safety, security and well-being.