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High taxes discourage air travel, says IATA DG
*Calls for tax reduction in aviation
The International Air Transport Association (IATA), the clearing house for over 265 global airlines has called for tax reduction in aviation.
The Director-General of IATA, Alexandre de Juniac wondered that in a country as big, beautiful and full of opportunity as the US, “why have a taxation policy that discourages travel? Aviation is the business of freedom and we must continue to work together to make it so,” said de Juniac.
De Juniac made his remarks at the US Chamber of Commerce 2017 Aviation Summit on Thursday where he also focused more broadly on the need for industry and government to align to support innovation. Looking to the agenda for the Trump Administration, de Juniac called for a reduction in the tax burden on aviation and air travellers, and a new approach to the provision of air traffic services.
De Juniac also urged the Trump Administration to return the country to the principles of airline deregulation.
“The Airline Deregulation Act of 1978 unleashed competition and spurred innovation by letting market forces drive commercial decisions. And today consumers benefit from more travel choices than ever. Deregulation has benefited travellers, the US economy and the competitiveness of its airlines. I hope that the Trump Administration will keep that in focus.”
Airlines for America estimates that taxes account for more than a fifth of the cost of the average domestic ticket.
He disclosed that travel stimulates the economy with tourism dollars and business development, adding, “We hope that the Trump Administration will create jobs by dramatically reducing the tax burden on travel.”
He stated that the world has grown much wealthier through trade and travel, adding that air travel liberates people to live better lives and makes the world a better place.
In the US, the aviation sector contributes $680.1 billion dollars to GDP and supports 6.2 million jobs.
The IATA boss stated that 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, lamenting that the US is falling behind in the introduction of new and more efficient technology. To him, now is the time to move forward with innovation in the provision of air traffic services.
He reiterated that delivering the benefits of an ever safer, efficient and sustainable air transport system in the face of a doubling of demand by 2035 will require quick, constant innovation.
At the industry level, he noted that governments play a particularly important role as partners and regulators.” He highlighted three areas where airlines and governments need to innovate together:
On safety, he said it is IATA’s top priority which is why flying is the safest way to travel, hinting that innovation plays a role in helping make it safe and it is most successful when industry and government work together.
“The IATA Operational Safety Audit (IOSA), which is a requirement for membership in IATA, is an example of such innovation. IATA worked with government safety regulators, including the FAA, to develop IOSA. And it is always evolving to make sure that the latest global best practices and technology advancements are incorporated into IOSA’s 900+ standards,” said de Juniac.
Security
“Security is the responsibility of states but the industry is playing a role. The threat is real and is constantly evolving. We must innovate to be more effective and more efficient,” said de Juniac.
“Security is the responsibility of states but the industry is playing a role. The threat is real and is constantly evolving. We must innovate to be more effective and more efficient,” said de Juniac.
IATA has partnered with Airports Council International (ACI) to promote Smart Security, which aims to reduce the hassle factor while making security more efficient and effective. Last year, IATA and ACI signed a Memorandum of Understanding with Hartsfield-Jackson Atlanta International Airport to deploy Smart Security concepts.
“Partnership with governments is critical for the success of Smart Security. And collaborative innovation is the only way to stay a step ahead of those intent on doing aviation harm. It is the only way to secure our vulnerabilities—landside, overflying conflict zones, insider threats or our IT infrastructure,” said de Juniac.
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