Cmdr Taggart
Well-known member
- Joined
- Jun 26, 2002
- Posts
- 73
I got this document from a friend that works in Congress. This was sent to him by an airline lobbyist. Some intresting ideas:
THE IRAQ WAR: OPTIONS FOR REDUCING THE DAMAGE TO AIR TRANSPORTATION
The Iraq war will devastate U.S. air transportation, adding unprecedented losses to airlines already in their third straight year of punishing financial results. Even if the war is of limited duration, the most likely scenario will result in annual airline losses of over $4 billion, on top of the $6.7 billion already anticipated in 2003, according to the just released ATA study, Airlines in Crisis: The Perfect Economic Storm. Based on experience with the first Gulf War, hostilities in Iraq could bring the airline industry to a screeching halt.
The following are a series of specific options that can be undertaken by the government to reduce the damage done to air transportation in the U.S.
Aviation Security
· Repeal the passenger security tax and the air carrier security fee. ($ 1.8 billion)
ü Security should be fully funded from the general fund.
· TSA should takeover all screening of passengers and property and the costs thereof, as intended by the Aviation and Transportation Security Act. ($600 million +)
ü Carriers are still performing security functions:
screening of catering facilities and catering supplies loaded onto aircraft,
transporting checked baggage from EDS/EDT machines to baggage belts,
controlling entry into secure areas through document verification,
screening of persons with access to aircraft,
screening individuals and baggage boarded onto charter flights,
performing fingerprint and other background checks
monitoring security exit lanes to prevent unauthorized entry,
ü Carriers are still paying (through airport rates and charges) for:
screening automobiles and trucks entering airport ramps or parking lots,
maintenance of belt systems modified to work with TSA equipment,
compensation for additional LEO’s to comply with TSA directives,
bringing airports up to TSA required levels of security,
revenue foregone as a result of TSA not paying market rates for its space.
TSA should bear the capital costs of equipment necessary to perform security screening or to bring airports up to TSA-required levels of security, e.g. enhanced fences and gates, security cameras, and facility modifications to accommodate EDS/ETD machinery, including reconstruction of bag rooms and belts. TSA should also pay the market rate for rentals of space at airports for all facilities that it occupies, including office space, locker rooms, interrogation facilities, and parking spaces.
Aviation Insurance
The Aviation Insurance program contained in the Department of Homeland Security statute should be extended permanently, as should the $100 million liability cap. Carriers would continue to pay premiums to the Federal Government no greater than those they currently pay.
Airlines cannot fly aircraft that are not insured. Traditional sources of airline insurance have been unable to provide government-required coverage at reasonable rates. Under the existing program, air carriers are annually saving approximately $800 million, and the Federal government is earning $140 million for the provision of this insurance.
Taxes and Fees
The Federal government should suspend certain taxes and fees on air transportation paid by passengers, shippers and airlines. The suspension would last for only the duration of hostilities plus one year past the conclusion of hostilities.
· Aviation Trust Fund Taxes should be suspended.
ü Unexpended balance in the trust fund is $12.6 Billion.
ü Uncommitted balance in the trust fund is $4.5 Billion.
ü Annual Receipts include:
Federal Ticket Tax $ 4.81 billion
Flight Segment Tax 1.53 billion
Int’l Arrival/Departure 1.28 billion
Cargo Waybill Tax 474 million
Jet Fuel Tax 789 million
Frequent Flyer Tax 150 million
During the period in which the trust fund taxes are not collected, the Trust Fund would be made whole by transferring from the General Fund into the Airport and Airway Trust Fund amounts equal to the amounts that would have been collected and deposited had the tax suspension not been in effect.
Strategic Petroleum Reserve (SPR)
The Secretary of Energy should be directed to draw down the SPR in quantities sufficient to avoid interruption of the jet fuel supply and to moderate extraordinary jet fuel prices.
Effective Date
These provisions should take effect on the date the President notifies the Congress that hostilities with Iraq have begun.
THE IRAQ WAR: OPTIONS FOR REDUCING THE DAMAGE TO AIR TRANSPORTATION
The Iraq war will devastate U.S. air transportation, adding unprecedented losses to airlines already in their third straight year of punishing financial results. Even if the war is of limited duration, the most likely scenario will result in annual airline losses of over $4 billion, on top of the $6.7 billion already anticipated in 2003, according to the just released ATA study, Airlines in Crisis: The Perfect Economic Storm. Based on experience with the first Gulf War, hostilities in Iraq could bring the airline industry to a screeching halt.
The following are a series of specific options that can be undertaken by the government to reduce the damage done to air transportation in the U.S.
Aviation Security
· Repeal the passenger security tax and the air carrier security fee. ($ 1.8 billion)
ü Security should be fully funded from the general fund.
· TSA should takeover all screening of passengers and property and the costs thereof, as intended by the Aviation and Transportation Security Act. ($600 million +)
ü Carriers are still performing security functions:
screening of catering facilities and catering supplies loaded onto aircraft,
transporting checked baggage from EDS/EDT machines to baggage belts,
controlling entry into secure areas through document verification,
screening of persons with access to aircraft,
screening individuals and baggage boarded onto charter flights,
performing fingerprint and other background checks
monitoring security exit lanes to prevent unauthorized entry,
ü Carriers are still paying (through airport rates and charges) for:
screening automobiles and trucks entering airport ramps or parking lots,
maintenance of belt systems modified to work with TSA equipment,
compensation for additional LEO’s to comply with TSA directives,
bringing airports up to TSA required levels of security,
revenue foregone as a result of TSA not paying market rates for its space.
TSA should bear the capital costs of equipment necessary to perform security screening or to bring airports up to TSA-required levels of security, e.g. enhanced fences and gates, security cameras, and facility modifications to accommodate EDS/ETD machinery, including reconstruction of bag rooms and belts. TSA should also pay the market rate for rentals of space at airports for all facilities that it occupies, including office space, locker rooms, interrogation facilities, and parking spaces.
Aviation Insurance
The Aviation Insurance program contained in the Department of Homeland Security statute should be extended permanently, as should the $100 million liability cap. Carriers would continue to pay premiums to the Federal Government no greater than those they currently pay.
Airlines cannot fly aircraft that are not insured. Traditional sources of airline insurance have been unable to provide government-required coverage at reasonable rates. Under the existing program, air carriers are annually saving approximately $800 million, and the Federal government is earning $140 million for the provision of this insurance.
Taxes and Fees
The Federal government should suspend certain taxes and fees on air transportation paid by passengers, shippers and airlines. The suspension would last for only the duration of hostilities plus one year past the conclusion of hostilities.
· Aviation Trust Fund Taxes should be suspended.
ü Unexpended balance in the trust fund is $12.6 Billion.
ü Uncommitted balance in the trust fund is $4.5 Billion.
ü Annual Receipts include:
Federal Ticket Tax $ 4.81 billion
Flight Segment Tax 1.53 billion
Int’l Arrival/Departure 1.28 billion
Cargo Waybill Tax 474 million
Jet Fuel Tax 789 million
Frequent Flyer Tax 150 million
During the period in which the trust fund taxes are not collected, the Trust Fund would be made whole by transferring from the General Fund into the Airport and Airway Trust Fund amounts equal to the amounts that would have been collected and deposited had the tax suspension not been in effect.
Strategic Petroleum Reserve (SPR)
The Secretary of Energy should be directed to draw down the SPR in quantities sufficient to avoid interruption of the jet fuel supply and to moderate extraordinary jet fuel prices.
Effective Date
These provisions should take effect on the date the President notifies the Congress that hostilities with Iraq have begun.
