A proposed plan to raise airline fees for TSA and U.S. Customs and Border Protection has airlines bracing for an attack from an Administration it so far has strongly supported.
The relationship between the White House and U.S. airlines is quite a paradox.
It was only weeks ago that Detla CEO Ed Bastian praised the Administration for reaching a deal with Qatar Airways that would prohibit future Fifth Freedom flights and require greater financial transparency:
We are grateful to the Trump administration for working to restore a level playing field for the U.S. aviation industry.
And only last week, the U.S. Department of Transportation essentially told airlines to send them suggestions on what consumer protections they wanted rolled back. Airlines rejoiced.
> Read More: Six Consumer Protections Airlines Hope to Eliminate
But massive tax cuts have to be paid for somehow and the latest Trump Budget proposal calls for raised airlines fees, including:
Passenger Security Fee
- Increases by $1 per one-way ticket in 2019
- Increases by $1.65 per-noway ticket in 2019
- meaning $8.25/each way just for “security” fees
U.S. Customs and Border Protection
- $2 increase in fees in 2019
Suddenly, airlines are no longer cheering. In fact, the LA Times reports that airlines are now warning about job growth and reduced air service if these fee increases are approved.
Increasing taxes in any form will add to the cost of flying for millions of Americans, curtail job growth and limit the options small and medium communities currently enjoy.
That’s Nicholas Calio, president and chief executive of Airlines for America. He’s the mouthpiece of U.S. airlines when it comes to regulatory policy.
We’ll see if this budgetary proposal sticks or Airlines for America is successful in making it go away.