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A4A Applauds Bipartisan House Action to Protect Travelers from Unjust Passenger Tax Hike
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A4A Applauds Bipartisan House Action
to Protect Travelers from Unjust Passenger Tax Hike
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Says passage of the Hudson/Richmond bill restores the round-trip cap,
bringing application of the passenger security tax in line with Congressional intent
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Washington, DC – September 2014 / Newsmaker Alert / Airlines for America (A4A), the industry trade organization for the leading U.S. airlines, applauded unanimous House passage of bipartisan legislation authored by Reps. Richard Hudson (R-NC) and Cedric Richmond (D-LA), along with House Homeland Security Committee Chairman Michael McCaul (R-TX) and Ranking Member Bennie Thompson (D-MS), to protect airline customers from higher passenger security taxes, which are unlawfully being collected by the federal government.

Since its inception, the passenger security tax was assessed on a per-enplanement basis and capped at a maximum of $5 for a one-way trip (maximum two enplanements) or $10 for a round-trip itinerary. Last year, as part of the bipartisan budget deal to reduce the deficit, Congress simplified the fee structure by creating a flat $5.60 fee per one-way trip. Congress made this change against the backdrop of the existing round-trip cap and expected it to remain in place.

The Hudson/Richmond bill addresses the Administration’s misinterpretation of congressional intent and restores the cap, thereby saving passengers over $60 million annually. The federal government is already collecting an additional $1.2 billion in passenger security taxes annually – on top of the near-record $2 billion in security taxes paid last year. Adding insult to injury, nearly all of the additional revenue will be used to reduce the deficit, not to enhance aviation security.

“Wednesday’s bipartisan vote recognizes the critical role U.S. airlines play as drivers of economic growth and jobs, and ensures that our customers are not penalized by an unnecessary tax increase,” said A4A President and CEO Nicholas E. Calio. “The bill’s passage sends yet another clear signal to the Administration to rescind its attempt to increase the cost of airfare. We thank Congressmen Hudson and Richmond for their leadership to reinstitute the round-trip cap as Congress intended, and urge the Senate to follow suit.”

For information on the tax burden facing airlines and their customers, visit StopAirTaxNow.com.

About A4A
Annually, commercial aviation helps drive nearly $1.5 trillion in U.S. economic activity and more than 11 million U.S. jobs. Airlines for America (A4A) vigorously advocates on behalf of the American airline industry as a model of safety, customer service and environmental responsibility and as the indispensable network that drives our nation’s economy and global competitiveness. Our member carriers and their affiliates transport more than 90 percent of all U.S. airline passenger and cargo traffic.

America needs a cohesive National Airline Policy that will support the integral role the nation’s airlines play in connecting people and goods globally, spur the nation’s economic growth and create more high-paying jobs. A4A works collaboratively with the airlines, labor groups, Congress and the Administration to improve air travel for everyone.

For more information about the airline industry, visit our website airlines.org and our blog, A Better Flight Plan, at airlines.org/blog.
Follow us on Twitter: @AirlinesDotOrg
Like us on Facebook: Facebook.com/AirlinesforAmerica

To learn how you can support a National Airline Policy, a better flight plan for everyone, visit nationalairlinepolicy.com.
Follow us on Twitter: @Natl_Air_Policy
Like us on Facebook: Facebook.com/NationalAirlinePolicy

Contacts:
Airlines for America (A4A)
Vaughn Jennings
Managing Director, Government and Regulatory Communications
202-626-4209
or
Victoria Day
Managing Director, Corporate and Member Communications
202-626-4141
or
Jean Medina
Senior Vice President, Communications

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Placement Dates: 09/18/14 – 11/18/14
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