NEWS RELEASE
WASHINGTON, June 15, 2005 – Noting that responsibility for international aid belongs with governments, the nation’s airlines today called on the United States to reject proposals for special aviation taxes to fund international development projects.
Reacting to a recent announcement by the G8 Finance Ministers that they would consider such a tax, in a letter to Treasury Secretary John Snow, Air Transport Association (ATA) President and CEO James C. May urged its prompt, clear rejection by the United States. “If we are to restore and sustain a viable air transportation system in the United States, we must reject, once and for all, the notion that airlines are the world’s ‘cash register’ to fund various public policy agendas,” May said.
The U.S. airline industry is making slow but steady progress in reestablishing its financial footing after four years of incredibly bad news – topped off by an unprecedented run-up in fuel costs. We cannot do it alone, however. The government must recognize that the costs it imposes have not only played a serious role in the industry’s losses but also harm the U.S. economy. Accordingly, the government must take corrective action. “A firm U.S. rejection of this proposal would be an excellent place to start,” May said.
The ATA is the trade association for the leading U.S. airlines. ATA member airlines transport over 90 percent of all passenger and cargo traffic in the United States.
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