Airline taxes impeding global economic growth: IATA

By Shayan Shakeel 5 March 2017
Airline taxes impeding global economic growth: IATA

The International Air Transport Association (IATA) is pointing to taxes on airlines as the cause behind stifling economic growth around the world.

Speaking at the US Chamber of Commerce 2017 Aviation Summit, Alexandre de Juniac, Director General and CEO of IATA, pointed out that taxes account for over a fifth of domestic ticket prices.

“The tax burden needs to be reduced. Airlines for America estimates that taxes account for more than a fifth of the cost of the average domestic ticket. In a country as big, beautiful and full of opportunity as the US, why have a taxation policy that discourages travel?” he said.

Looking to the agenda for the Trump Administration, de Juniac called for a reduction in the tax burden on aviation and air travelers, and a new approach to the provision of air traffic services.

“The US 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 travelers, the US economy and the competitiveness of its airlines. I hope that the Trump Administration will keep that in focus,” he said.

In the US, the aviation sector contributes $680.1 billion dollars to GDP and supports 6.2 million jobs, a number that could grow higher were it nor taxes, said de Juniac.

“We hope that the Trump Administration will create jobs by dramatically reducing the tax burden on travel. Our world has grown much wealthier through trade and travel. Air travel liberates people to live better lives and makes our world a better place.

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