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Tax hikes threaten US airline industry with billions in new costs

Analysis

Every aviation group came out foursquare against the aviation tax hikes proposed as part of President Barack Obama's deficit reduction packages. The plan would raise the passenger security fee from USD5-10 per return trip to USD15 by 2017 and give the Homeland Security Department the right to revise it upward. Obama's plan would also impose a surcharge of USD100 per flight to help pay for air traffic control. Airlines argue the move runs counter to measures the administration should be taking to promote aviation since it is a proven economic driver contributing 12-15 jobs for every airline job produced. The argue it implies airlines cannot be part of the recovery plan for increased hiring.

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