A4A Urges Congress to Rework Government Policies to Improve Global Competitiveness of U.S. Airline I

Fundamental tax, regulatory and infrastructure challenges that prevent industry from being sustainably profitable and globally competitive also negatively impact U.S. businesses and the broader economy

Airlines for America (A4A) President and CEO Nicholas E. Caliotestified today before the House Transportation and Infrastructure Committee's Subcommittee on Aviation, addressing the critical role U.S. airlines play in economic growth and job creation and urging Congress to create a policy environment that enables carriers to run a business while encouraging growth, jobs and better performance for customers.

As the panel explored the state of the U.S. aviation industry, Calio stressed that the latest budget deal, which relies on raising taxes on airline passengers - on top of the $19 billion airlines and their customers already pay - speaks to the disjointed and hostile government action facing the industry. Calio also reiterated calls for a cohesive National Airline Policy to normalize the tax and regulatory environment to be more in line with other industries, enabling the U.S. airline industry to grow and prosper.

"U.S. airlines are a strategic asset and enabler of the broader U.S. economy, yet the policies of our own government continue to impede the viability and competitiveness of our carriers," said Calio. "Recent action in Congress further underscores the need for a cohesive National Airline Policy, in which the U.S. government recognizes U.S. carriers as a strategic asset and the economic engine that drives 5 percent of GDP and 10 million jobs across the United States."

In his testimony, Calio identified fundamental tax, regulatory and infrastructure challenges facing the industry here at home, in addition to international challenges from foreign competitors who enjoy favorable treatment from their governments, which is often in direct contrast to the way the U.S. government treats its own carriers.

"Unfortunately, all too often airlines confront indifferent, disjointed or hostile government policies. We operate in a public-policy setting that veers from the listless to the antagonistic," Calio said. "Our government must play its appropriate role in ensuring U.S. commercial aviation can survive in what is now a dynamic global aviation sector that is rapidly changing - the risk of inaction is far too great."