Airlines ask investors to help fight proposed US taxes that have detrimental impact

A funny thing happened during this earnings season. They became a platform for aviation policy reform. In a significant departure, airlines took time to ask analysts and investors to help them convince Washington the industry is not only taxed too much but cannot withstand the USD36 billion in new taxes now being proposed in Washington.

The plea was linked to the completion of the industry restructuring that has been under way for the past few years. Indeed, CEO Doug Parker made the point to analysts during yesterday's earnings call that government policies and taxation are the only thing separating the industry from its real potential as well as its potential to further contribute to the economy. If it could get Washington policies to change, the industry would then be much like any industry, he indicated.