A4A Urges Holistic Approach to Tax, Regulatory Challenges

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

	A4A Urges Holistic Approach to Tax, Regulatory Challenges
	PubZone1 SCOTTSDALE, Ariz., March 19, 2012 – Airlines for America (A4A), the industry trade organization for the leading U.S. airlines, today called on the U.S. government to reform federal taxes and regulations to enable U.S. airlines to compete globally on a level playing field and help grow the country’s economy. “We can work together in creating a business environment that will allow for future growth and global competitiveness,” said A4A President and CEO Nicholas E. Calio in a speech to the International Society of Transport Aircraft Trading (ISTAT) Annual Conference. “Or our government can ignore the future ramifications of an uncompetitive U.S. airline industry to our medium and small communities and ignore the benefits of the industry to our own economy.” Calio detailed the excessive tax and regulatory burden faced by the airline industry and its passengers, making it one of the most highly regulated businesses in America, even though Congress deregulated the industry nearly 35 years ago. The 17 different federal taxes and fees have grown significantly over the same period with passengers now paying 20 percent of a typical domestic round-trip ticket price to the government. The Department of Transportation (DOT) recently enacted a rule reducing transparency of taxes paid on air travel. A4A warned that DOT is drafting a third consumer protection rule and already proposed a separate rulemaking that would require airlines to report revenue information related to 19 separate items, including how much they collect for meals, drinks and upgrades. The third consumer protection rule could require airlines to make all of their products available through global distribution systems, a requirement unique to air travel. A4A recently unveiled details of the five components necessary for an effective National Airline Policy (NAP). In addition to reform the tax structure and regulatory environment to ensure global competitiveness, the NAP identifies ways to improve the infrastructure and accelerate the deployment of the most cost-beneficial parts of NextGen. ABOUT A4A Annually, commercial aviation helps drive more than $1 trillion in U.S. economic activity and more than 10 million U.S. jobs. A4A airline members and their affiliates transport more than 90 percent of all U.S. airline passenger and cargo traffic. For more information about the airline industry, visit www.airlines.org and follow us on Twitter @airlinesdotorg. ### PubZone2	A4A is a leading source for key aviation information.