Coalition Letter to Secretary LaHood Regarding Global Distribution Systems (GDS)

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 to Secretary LaHood Regarding Global Distribution Systems (GDS)
	PubZone1 April 19, 2012 The Honorable Ray LaHood Secretary Department of Transportation 1200 New Jersey Ave., SE Washington, DC 20590 Dear Secretary LaHood: The undersigned associations represent virtually all of the commercial scheduled passenger airlines that fly into or out of the United States on a daily basis. We are writing to express our united concern regarding any proposal by the U.S. Department of Transportation (DOT) to mandate that airlines serving the United States distribute all content and services though global distribution systems (GDSs). We recognize that DOT is committed to ensuring that airline passengers have the information they need to make informed decisions on their air travel purchases. Our member airlines strongly support that principle. Today, passengers have access to more information than ever before presented to them in advance of their ticket purchase, through carrier websites, reservation phone lines, airport kiosks, online travel agencies and third party websites that compare and contrast airline service offerings. DOT’s Consumer Rule 1 and Consumer Rule 2 codify the guarantees that airlines have already made to their customers to provide the information they need for their purchases in a timely and coherent manner. Carriers are perfectly incented to provide information on the services they offer in a way that allows customers to make informed decisions in as seamless a manner as possible. However, this shared commitment to transparency cannot justify a government mandate that airlines contract with GDSs to distribute all airline content and services via that channel. Instead, airlines should continue to have the right to utilize any distribution channel they chose as long as in doing so they meet the letter and spirit of this shared commitment to transparency. Mandating that airlines distribute all of their content through a GDS monopolist will result in significant consumer overcharges. GDS suppliers can be up to 80% more expensive than other equally transparent distribution channels. The proposed DOT mandate will invariably lead to a reduction in competition and technology innovation, while increasing the price of tickets for the end-user consumer. Furthermore, we do not believe it is appropriate for DOT to interfere in contractual relationships between airlines and GDSs, particularly at the present time when there is pending litigation in this area. We urge you and your department to refrain from introducing a new regulatory regime whereby airlines would be obliged to contract with GDS. Doing so would only serve the needs of monopoly suppliers at the expense of consumers, the airlines that serve them and the technology companies that are offering more robust and cost effective GDS alternatives. Sincerely, PubZone2	A4A advocates measures to support aviation safety, security and well-being.