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
The Honorable Harry M. Reid Majority Leader United States Senate Washington, DC 20510
The Honorable Nancy Pelosi Speaker United States House of Representatives Washington, DC 20515
The Honorable Mitch McConnell Minority Leader United States SenateWashington, DC 20510
The Honorable John Boehner Minority Leader United States House of Representatives Washington, DC 20515
Dear Leaders:
On behalf of the member companies we represent, our associations urge you to support extending the temporary 50 percent expensing (or “bonus depreciation”) provision set to expire at the end of this year, as recently recommended by President Obama.
Our member companies have largely maintained our huge investments in the US economy while this policy has been in place, with 30 cents of every capital dollar going towards good jobs here in the US. As this provision nears its sunset date, we are concerned its expiration could result in reduced future investment at the wrong time – just as our economy slowly recovers and while unemployment rates remain high.
The outlook for the overall economy has improved over the past few months, yet we still need pro-growth policies to ensure that economic growth continues. The 19 percent decline in business investment during 2008-2009 has been deeper than any decline in the post-World War II era. While there are tentative signs that business investment is starting to stabilize, we are not yet out of the woods. We need to do all we can to keep the economy moving in the right direction.
Unfortunately, the important investment incentive provided by bonus depreciation will soon expire. Many companies must both make investments and place the equipment into service before the end of 2009 to qualify for bonus depreciation. Because of the time needed to plan investments and the lead time needed to construct and install certain equipment, there is a very narrow window of opportunity for companies to take advantage of bonus depreciation before it expires.
Our member companies believe that allowing businesses to continue expensing 50 percent of capital equipment in the tax year it is purchased and placed into service, at least through the end of 2010, is needed to promote continued investment. Treasury studies have shown this would promote substantial economic growth. President Obama agrees, and recommended an extension of the Recovery Act’s bonus depreciation provisions as part of his proposals to accelerate job growth announced on December 8.
The bonus depreciation provisions enacted for 2008 and 2009 have been valuable in promoting investment, but to bolster economic growth, bonus depreciation needs to be extended before it lapses. Thank you for considering our proposal. We look forward to working with you to ensure that this legislation is enacted into law.
Sincerely,
Air Transport Association American Trucking AssociationAmerican Gas AssociationBusiness Roundtable CTIA – The Wireless Association National Cable & Telecommunications AssociationTechAmerica Telecommunications Industry AssociationUnited States Telecom AssociationEdison Electric InstituteSolar Energy Industries AssociationNational Association of ManufacturersU.S. Chamber of Commerce
CC: The Honorable Max Baucus, Chairman, Senate Finance Committee The Honorable Charles Rangel, Chairman, House Ways and Means Committee The Honorable Charles Grassley, Ranking Member, Senate Finance Committee The Honorable Dave Camp, Ranking Member, House Ways and Means Committee