This very same government, the Obama administration, along with this very same set of Congressmen who all profess great dismay at airlines and who offer that they are there to protect the consumer have ignored their role in what I would describe as a blatant shakedown.

It’s called the ever increasing taxes on airlines and travel.

Taxes have increased so much that they can represent from 15% to 20% of the cost of an airline flight to someplace in the United States.  Taxes are focused directly on the consumer and the consumer, the person who is actually flying, is being asked to bear the whole burden of the infrastructure necessary for commercial airlines.

The taxes are so great that they now *do* impact the decision to travel.  In fact, the taxes are often so egregious that they represent the highest portion of the increased cost to travel today.  They are grossly impacting the ability of airlines to win customers and stabilize their business.

Indeed, our current government’s inability to get its act together on sequestration has materially and substantially affected the airline industry this year in that we are seeing slight negative growth as a result.

The argument that a user should pay for an airport seems logical to many at first glance but consider the rather dramatic and powerful economic impact a major airport has on an area.  Consider what the D/FW area would be if DFW airport did not exist today.  Would ExxonMobil be headquartered here?  Would we be a major tech center?  Would bankers still want to bank here?  Would we have not one but 2 major airlines here?

We all benefit from these airports and airlines and the ability to travel.  It’s time we all share the burden of that.

So, if we truly are worried about the consumer and the financial impact on them. . .

. . . Could we please redistribute the taxes in place and share the burden more fully all around?

Filed under: Airports, Mergers and Bankruptcy by ajax