US Highway Trust Fund tax proposals criticized
Travelers United has joined with other travel organizations to protect proposals that will raise fees on airline passengers to pay fees that will go to the highway fund. That sounds like a tax to me, not a fee for service. After last year’s debacle where a portion of the TSA security fee increase was earmarked for the general fund, airline passengers do not need another fee that is used for something other than travel.
An October 13 letter to the House Ways and Means Committee from Democrat members of the Committee on Homeland Security and the Appropriations Committee’s Subcommittee on Homeland Security expressed concern that a proposal to divert the fees would set a “troubling precedent,” and “jeopardizes a significant source of border security funding … to pay for unrelated projects in the highway bill.”
A previous letter to both the House Ways and Means Committee and the Senate Finance Committee from the Airports Council International – North America, Airlines for America, the Global Business Travel Association, the International Air Transport Association, Travelers United, and the US Travel Association, had also emphasized that they “strongly oppose any suggestion that highway funding be generated via an increase in the aviation passenger’s CBP fees.”
“If provisions to increase and divert CBP fees to pay for highway investments are enacted,” the organizations continued, “progress in encouraging trade and travel, as well as the jobs created by these activities, will be jeopardized.”
Passenger fees are boosting profit margins for many small airlines
Speaking of airline fees, airlines are becoming more and more addicted to fees, fees and more fees. Consumers are losing because of loss of transparent pricing and the lack of true comparison shopping. Here are some of the airline fee statistics.
Based on operating profit margins, ultra-low fare airlines like Allegiant (24 percent margin), Spirit (21 percent), Frontier (17 percent) and Ryanair in Europe (20 percent) surpassed the biggest U.S. carriers, including American (15 percent), Delta (14 percent) and United (11 percent), over a 12-month period ending in June.
“There is no question that unbundling has been very profitable,” Kaplan [managing partner for the trade publication Airline Weekly] said.
U.S. Transportation Secretary Anthony Foxx announces unmanned aircraft registration requirement
Travelers United has been meeting with Congress, urging them to make registration of Unmanned Aerial Systems mandatory for all operators, both commercial and hobbyists. Travelers United is also suggesting that altitude limiters be installed on all drones sold to hobbyists, since they are not allowed to fly higher than 400 feet. So far, both recommendations have not borne fruit. However, the first break seems to have come from DOT and FAA, which are calling for commercial drone registration. Seriously, can’t these giant organizations do better?
This announcement is welcome, but a 25 to-30-person committee is a bit unwieldy for a committee that is directed to have a recommendation in the Secretary of Transportation’s hands by November 20. In my experience, it may take that amount of time to find committee members and schedule the first meeting.
The task force will be composed of 25 to 30 diverse representatives from the UAS and manned aviation industries, the federal government, and other stakeholders. The group will advise the Department on which aircraft should be exempt from registration due to a low safety risk, including toys and certain other small UAS. The task force also will explore options for a streamlined system that would make registration less burdensome for commercial UAS operators.
The task force may make additional safety recommendations as it deems appropriate. Secretary Foxx directed the group to deliver its report by Nov. 20.
“Registering unmanned aircraft will help build a culture of accountability and responsibility, especially with new users who have no experience operating in the U.S. aviation system,” Foxx said. “It will help protect public safety in the air and on the ground.”
Charlie Leocha is the President of Travelers United. He has been working in Washington, DC, for the past 14 years with Congress, the Department of Transportation, and industry stakeholders on travel issues. He was the first consumer representative to the Advisory Committee for Aviation Consumer Protections appointed by the Secretary of Transportation from 2012 through 2018.