Groups voice opposition to hike in air security ticket tax

By Michael Milligan

WASHINGTON -- The airlines rounded up an array of industry lobby groups to echo their concerns about the effect of the plan to raise the 9/11 security tax on airline tickets.

The Air Transport Association (ATA), the carriers’ main lobbying group, contends that thousands of airline jobs will be at risk and the long-term health of the overall economy will be placed in jeopardy if Congress approves the plan.

At a briefing here Feb. 10, a number of aviation, travel and consumer groups came together to reinforce that message, including the Travel Industry Association and the Competitive Enterprise Institute.

The emerging industry consensus is that the cost of airline security should be borne by the government.

James May, president of the ATA, warned the tax increase would significantly harm an already struggling airline industry.

“Last year, the industry lost another $10 billion, bringing our three-year total to a staggering $33 billion,” he said. “Now, if that isn’t the definition of a crippled industry, I’m not sure what is.”

The ATA laid out its concerns in a letter to Bush administration officials. It hopes to convince Congress to quickly hold a hearing on the matter.

“Over the past three years, our industry has eliminated more than 123,000 jobs, and, unfortunately, thousands of more cuts are expected in 2005,” May said.

And the airline’s economic troubles have a broader impact, he added.

“When aviation is damaged, the ill effects ripple across national and regional economies,” he said.

Also on hand to support the ATA’s position were representatives from the Air Travelers Association, the Regional Airline Association, the National Taxpayers Union, the Interactive Travel Services Association and the Americans for Tax Reform.

To contact reporter Michael Milligan, send e-mail to mmilligan@travelweekly.com.