A4A Denounces Senate Highway Revenue Diversion Plan as Bad Policy

WASHINGTON, July 23, 2015 – Airlines for America (A4A), the industry trade organization for the leading U.S. airlines, today denounced a Senate plan that calls for diverting funds that airline passengers pay in Transportation Security Administration (TSA) fees and Immigration and Customs fees to pay for the highway trust fund, calling it a misguided policy that harms airline passengers.

As part of the offsets in the Senate Highway bill, the plan calls for using portions of revenue assumed to be collected from TSA fees in years 2024 and 2025 to offset government costs for a highway fix this year. Moreover, the Senate plan would substantially increase the cost of air travel by indexing immigration and customs fees to inflation. In total, the bill makes airline passengers pay $9.2 billion for surface transportation by diverting ticket taxes to the highway trust fund.

“This is bad, misguided policy that completely ignores the rights of airline passengers, who are already overpaying in taxes to the federal government every time they fly,” said A4A President and CEO Nicholas E. Calio. “Like the House proposal, this wrongly diverts dollars airline passengers pay for safety and security to fund the use of highways. To suggest that airline passengers should pay even more in federal taxes for something unrelated to air travel makes no sense and further punishes some two million taxpayers who fly every day.”

On a typical, domestic $300 round-trip ticket, airline passengers can already pay $63 in federal taxes, or 21 percent, a rate that rivals taxes on alcohol and tobacco.

ABOUT A4A

Airlines for America (A4A) members are Alaska Airlines, American Airlines, Atlas Air, Delta Air Lines, FedEx, Hawaiian Airlines, JetBlue Airways, Southwest Airlines, United Airlines and UPS. Air Canada is an associate member.

A4A advocates on behalf of the leading U.S. airlines, both passenger and cargo carriers. A4A works collaboratively with industry stakeholders, federal agencies, the Administration, Congress, labor and other groups to improve aviation for the traveling and shipping public.

For more information about the airline industry, visit our website airlines.org and our blog, A Better Flight Plan, at airlines.org/blog.

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