Coalition Letter in Support of S 1956 The European Union Emissions Trading Scheme Prohibition Act of 2011

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

	Coalition Letter in Support of S 1956 The European Union Emissions Trading Scheme Prohibition Act of 2011
	PubZone1 July 31, 2012 The Honorable John D. Rockefeller IV Chairman, Committee on Commerce, Science and Transportation United States Senate 531 Hart Senate Office Building Washington, DC 20510 Dear Chairman Rockefeller: On July 31, the Senate Commerce Science and Transportation Committee will mark up S. 1956 – The European Union Emissions Trading Scheme Prohibition Act of 2011. This legislation allows the Secretary of Transportation to prohibit U.S. aviation operators from complying with the application of the European Union Emissions Trading Scheme should he determine that compliance with the scheme is not in the public interest. The scheme – which imposes a significant tax on U.S. aircraft operators and consumers for the benefit of EU treasuries – violates U.S. sovereignty, international law and the Chicago Convention. We urge strong bipartisan support for this legislation. The EU ETS is opposed by consumers, the aviation trade associations, airlines and other operators, travel-service providers, manufacturers, labor unions and many large foreign governments. Secretaries Clinton and LaHood sent a stern warning to their EU counterparts to cease and desist to no avail. The EU ETS will do nothing to decrease aviation emissions. The solution to decreasing aviation emissions lies in an international agreement currently progressing through the International Civil Aviation Organization (ICAO). We support this process. Contrary to what some have said, the EU ETS is hindering this process; not expediting it. The aviation industry has committed to measurable targets for fuel efficiency and emissions improvements, including a 1.5 percent annual average fuel-efficiency gain through 2020, carbon-neutral growth from 2020 and a 50 percent net reduction in emissions by 2050. Aviation is the only industry in the world that has come together under clearly defined targets to reduce its dependence on oil and reduce its carbon emissions. These targets have been hailed by world leaders as the model for all industries. With fuel as the airlines’ and other operators’ highest and most volatile operating cost, we are highly incentivized to reduce fuel consumption and resulting emissions as our strong record of fuel efficiency and emissions savings attests. With the EU ETS obligation for U.S. airlines and aircraft operators to have “allowances” to cover their emissions for all flights to, from and within the EU since January 1 of this year, this obligation appears on their balance sheets as a liability. Thus, even though the airlines and aircraft operators do not have to surrender these allowances to EU officials until 2013, the EU ETS already is causing operators to pay higher interest rates on loans and decreasing the operators’ ability to make major capital investments in new aircraft, engines and other investments that will reduce fuel consumption and bring real emissions reductions. The EU ETS will impose significant costs on U.S. airlines, aircraft operators and consumers over the next few years, costing more than $3 billion dollars and tens of thousands of jobs in the aviation, manufacturing, travel and hospitality industries. Civil aviation is responsible for 5.2 percent of U.S. gross domestic product and 10 million U.S. jobs. Airlines and other operators have operated with a razor-thin profit margin over the last 40 years and have lost more than $55 billion and 160,000 jobs since 9/11. The most current estimate is that aviation contributes about 2 percent of global CO2 emissions. The last thing our industry needs right now is this extraterritorial EU tax. Your support of S. 1956 will help ICAO reach our mutual goal of decreasing fuel consumption and emissions. Instead of negotiators being forced to accept a unilaterally imposed system by the EU, your support will allow negotiators to focus on the task at hand and actually address our challenges through ICAO. ICAO is a proven leader for addressing global aviation challenges, having adopted seminal agreements on aircraft noise and local emissions and key elements of a global framework on aviation and climate change. While we have seen unfounded hyperbole about aviation and climate change from those who oppose S. 1956, we respectfully ask that you focus on the facts, the successful track record of ICAO, and our unwavering support of decreasing our fuel consumption through a global approach that will actually yield the results we all desire. Aerospace Industries Association Aircraft Owners and Pilots Association Air Line Pilots Association Airlines for America Airports Council International - North America American Society of Travel Agents Cargo Airline Association Consumer Travel Alliance Interactive Travel Services Association International Air Transport Association International Brotherhood of Teamsters – Airline Division General Aviation Manufacturers Association National Air Carrier Association National Air Transportation Association National Business Aviation Association Regional Airline Association U.S. Travel Association PubZone2	A4A advocates measures to support aviation safety, security and well-being.