My Account Menu

CAPA Login


Register to trial CAPA Membership!

ATA: Nearly 10,000 airline job cuts likely if taxes imposed

5-Oct-2011 10:21 AM

Air Transport Association of America (ATA) warned (04-Oct-2011) nearly 10,000 airline industry jobs could be cut within one year if two new proposed passenger security and airline departure taxes are implemented. ATA added that nearly 181,000 jobs could be lost across the economy related to reductions in aircraft manufacturing, airports and supporting businesses, according to a report by Oliver Wyman. According to the Oliver Wyman calculations, capacity could be reduced by 2.3% if the taxes are implement, leading to the elimination of 9700 jobs compared to 2011 employment levels. [more - original PR]

ATA: “The job-killing equation is simple – add taxes and lose jobs. Tripling the passenger security fee and creating a new USD100 departure tax will have a devastating effect on the US economy and our customers, who already pay more in taxes for air travel than they do for alcohol, tobacco and firearms. The proposed new taxes will impact fares and reduce service, which equates to a one-way ticket to the unemployment line for thousands of Americans,” Nicholas E Calio, president and CEO. Source: Company Statement, 04-Oct-2011.