IATA has urged the Trump Administration to reduce the tax burden on aviation and air travelers.
Speaking at the US Chamber of Commerce 2017 Aviation Summit, IATA Director General and CEO Alexandre de Juniac highlighted the importance of aviation in facilitating trade in the United States.
In a country as big, beautiful and full of opportunity as the US, why have a taxation policy that discourages travel?
The aviation sector contributes $680.1 billion to the country’s GDP and supports 6.2 million jobs.
“Airlines for America estimates that taxes account for more than a fifth of the cost of the average domestic ticket,” de Juniac says.
“In a country as big, beautiful and full of opportunity as the US, why have a taxation policy that discourages travel?
“Travel stimulates the economy with tourism dollars and business development. We hope that the Trump Administration will create jobs by dramatically reducing the tax burden on travel."
De Juniac also called for a new approach to the provision of air traffic services, saying that the US is falling behind in the introduction of new and more efficient technology.
“Airlines and their passengers suffer the impact of the unpredictable federal budget process on the Federal Aviation Administration’s (FAA) provision of air traffic services,” he said.
Deregulation has benefited travelers, the US economy and the competitiveness of its airlines
“Now is the time to move forward with innovation in the provision of air traffic services. IATA supports the creation of an independent, corporatized non-profit entity to manage US skies.
“IATA hopes that this will be one of the achievements of the Trump Administration and the 115th Congress.”
Deregulation is another area IATA wants the Trump Administration to examine. De Juniac says deregulation plays a key role in stimulating the economy, allowing travellers more freedom.
“The Airline Deregulation Act of 1978 unleashed competition and spurred innovation by letting market forces drive commercial decisions,” he said.
“And today consumers benefit from more travel choices than ever. Deregulation has benefited travelers, the US economy and the competitiveness of its airlines.
“I hope that the Trump Administration will keep that in focus."