Industry berates passenger tax rises

Victoria
By Victoria September 28, 2011 10:16

Industry berates passenger tax rises

President Obama proposed an increase in airline passenger duty last week.

Obama proposes imposing a $100 fee on each commercial airliner and corporate jet every time they take off; raising the per-passenger security fee, which helps pay for the Transportation Security Administration’s airport screening, from the current $2.50 for each leg of a flight to a maximum $5 for a one-way trip to a flat $5 one way. The fee also would rise another 50 cents a year from 2013 through 2017 to $7.50. The Homeland Security Department could raise it further through regulation.

The increases would be passed on to passengers through ticket prices, and airlines fear this will have a detrimental effect on traffic numbers.

However, the Obama administration says the rises are needed to cover the agency’s costs. The security fees that passengers pay now only cover about 43% of its costs of providing security in the air. The president says that it needs to better cover the agency’s costs.

Victoria
By Victoria September 28, 2011 10:16
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