ATA Letter to Sen Lieberman on the Aviation Passenger Security Fee

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 to Sen Lieberman on the Aviation Passenger Security Fee
	PubZone1 February 25, 2010 The Honorable Joseph I. Lieberman Chairman, Committee on Homeland Security and Governmental Affairs United States Senate 340 Dirksen Senate Office Building Washington, DC 20515 Dear Chairman Lieberman: I am writing to express my great concern that, during yesterday’s Senate Homeland Security and Government Affairs Committee hearing on the 2011 Department of Homeland Security (DHS) budget, you expressed support for the administration’s proposal to increase the aviation passenger security fee. We agree that the seriousness of the Christmas Day incident necessitates increased vigilance, intelligence reforms and enhanced technology in the arena of aviation security, and we support increased effective federal spending on aviation security. However, we remain steadfast in our position that homeland security is a national defense function and security costs should be borne by the federal government. Those seeking to harm our country utilizing aircraft are attacking the entire U.S. population and our way of life – not specifically airlines or their passengers. The president’s FY2011 budget proposal ignores this principle by proposing an additional $7 billion atop the $7.8 billion in 9/11 fee collections already projected over the four-year period 2012-2015. Airlines and their customers already contribute $3.5 billion to $3.8 billion per year in security taxes to U.S. agencies, and by 2015 the increase in the 9/11 fee alone would impose an estimated $2.4 billion more. As a Wall Street Journal columnist has noted, “To fill empty seats, airfares are under tremendous pressure to reduce fares, and air travelers will go far out of their way to save a nickel. So the security fee comes right out of the revenue an airline can collect.” Importantly, at a time when the nation’s unemployment rate is at its highest level in 26 years, and 25 states and the District of Columbia are enduring 9 percent or higher unemployment, this proposed tax runs directly counter to our common goal of increasing jobs in aviation and the broader economy. Data just released by the Bureau of Transportation Statistics noted that nearly a quarter of U.S. airline jobs vanished in the past decade – the airline industry lost 170,000 jobs in total since 1999. Increasing taxes will only exacerbate this trend and the ability of the airlines to foster economic and employment growth throughout the country. Airlines have persevered and displayed remarkable resilience in coping with back-to-back spike in fuel prices and severe global recession. From 2001 through 2009, our industry has collectively lost approximately $60 billion. At the onset of the new decade, airlines are simply asking that the federal government “Do No Harm.” A healthy airline industry will engender not only new jobs but also a pick-up in orders for new airframes and engine orders, translating into new manufacturing jobs for manufacturers as well as the hundreds of suppliers that build components for planes. Please know that we have worked closely and tirelessly with DHS and Transportation Security Administration (TSA) in the aftermath of the Christmas Day incident to help prevent another attack. However, we urge you to reconsider your stated position at yesterday’s hearing. We stand ready to work with you and your committee to improve aviation security in the United States throughout the world. Sincerely, James C. May cc: The Honorable Susan Collins, Ranking Member PubZone2	A4A advocates measures to support aviation safety, security and well-being.