Nation needs a new airline policy

If Washington is serious about boosting the economy and creating jobs, it needs look no further than the U.S. airline industry. Every day, U.S. airlines safely and efficiently transport 2 million passengers and 50,000 tons of cargo. Commercial aviation drives 10 million jobs and $1 trillion in economic activity, and U.S. airlines could contribute at an even higher level if they operated in an environment that enabled them to effectively compete globally.
 
To do that, we need a comprehensive policy that supports the integral role the U.S. airline industry plays in our economy – a policy that would spur growth and create more high-paying U.S. jobs.
 
Airlines for America (A4A) and its members are proposing a national airline policy and this week launched a campaign to raise awareness about how this policy would benefit passengers, airline employees, communities, businesses and shippers – and ultimately, our economy.

The policy seeks to reduce taxes, reform the industry’s regulatory burden, modernize our nation’s air traffic control system, stabilize runaway energy prices and enable the industry to compete globally.
 
The aviation industry faces 17 different taxes, comprising about 20 percent of a typical $300 roundtrip domestic ticket, and federal tax rates exceed those for alcohol and tobacco, products that are taxed to discourage use.
 
Policymakers could help improve travel by eliminating inefficient and costly rules that do not improve safety or the customer experience. Even though the industry was deregulated in 1978, today it is still one of the most regulated sectors of our economy. There are several existing and future government regulations that are projected to cost the U.S. economy billions annually – with no clear benefits for travelers. That needs to change.
 
The U.S. air traffic control system dates back to the 1950s. Implementing new policies and procedures would enable airlines to leverage technology investments they have already made and would reduce flight delays, missed connections and cancellations, while also lowering fuel consumption and related emissions.
 
Reducing fuel use is critical, as fuel is the single largest cost for airlines – and the most volatile. Supporting a balanced and comprehensive national energy policy would improve U.S. energy security with more predictable and stable energy supplies and costs.
 
U.S. airlines face increased competition from foreign carriers that operate in much more favorable policy environments in their home countries. We need to level the playing field so that American carriers can better compete with these foreign competitors.

A national airline policy is the right move. And there’s precedent for such action. In the 1970s, the federal government enacted policy changes that helped revitalize our freight railroads, making them the envy of the world.
 
We have a real opportunity to grow our economy and create jobs with a National Airline Policy that benefits passengers and shippers, businesses and communities. And the time to do so is now.
 
Calio is president and CEO of Airlines for America.
 
 

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