IATA opposes new passenger tax hike

first_imgThe international Air Transport Association (IATA) has conveyed its disagreement with the US Governments proposal to double the 9.11 passenger security fee. As part of its deficit reduction plan the US President, Barack Obama administration office plans to double the security fee and continue to raise it in successive years through to 2017. IATA Director General and CEO Tony Tyler said national security is the responsibility of the Government, Airlines and passengers should not be made to pay. “To add insult to injury, more than half of the increased revenue from the higher fee will be diverted into the general fund and will not be used to make air travel more secure,” Mr Tyler added. Currently the security fee for passengers travelling from the US airports is US$2.50 per flight sector with a cap of US$5.00 one-way and US$10.00 per round trip.  Under the new proposal the fee will be US$5.00 for all one way trips and US$10.00 per round trip. Mr Tyler stated that this new security fee will progressively rise by US$1.00 per year between 2013 until 2017. “This is absolutely the wrong approach, the economic outlook is uncertain and confidence among both businesses and consumers is low.” Mr Tyler said raising the cost of air travel is not a good economic move and drew a comparison with a similar passenger tax in the Netherlands which cost the economy more than it collected.“Globally aviation supports US$3.5 trillion in economic activity and 33 million jobs,” Mr Tyler added. Source = e-Travel Blackboard: S.Plast_img