WASHINGTON, Sept 9 - U.S. airline losses in 2005 could reach $10 billion, due mainly to soaring fuel prices made worse by Hurricane Katrina, the industry's chief trade group estimated on Friday.
To try and stem the red ink, major carriers plan to ask Congress next week for a one-year holiday from the federal tax on jet fuel to save $600 million, the Air Transport Association said.
"There simply is no rational business plan we can continue to operate under with fuel at the price it is today," Jim May, the association's chief executive, said in an interview with CNBC.
Estimated losses for the year rose from $7 billion to between $9 billion and $10 billion, the association said.
Industry executives plan to make their tax relief request at a Senate hearing next week, a trade group spokesman said. Key lawmakers have already pledged to explore rolling back the jet fuel tax of 4.3 cents per gallon.
Transportation Secretary Norman Mineta said earlier this week the idea was worth looking at but stressed the Bush administration had not formulated a policy on tax breaks for airlines.
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How about quit selling half or less the cost of operation fares on the long hauls having multiple airlines and trying to make it up with exhorbitant fares on the non competitive routes?
They remind me of soem people I know that ask for a hand out and barely get the thank you out before saying I need more.
Basically the airlines are in a mess they got themselves into adn now they are wanting someone else to bail out bad decisions. No sympathy.
The real problem with the jet fuel tax is that it is no where near high enough to cover the government provided services it was supposed to cover.
George
Posts: 2808 | From: Olive Branch MS | Registered: Nov 2002
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quote:Basically the airlines are in a mess they got themselves into adn now they are wanting someone else to bail out bad decisions. No sympathy.
I think the difference between this and Amtrak is that the Airlines, have never had it terrible, they made themselves this way, now, obviously 9/11 didnt help, and Amtrak has never had it easy. You cant simply create a crappy company from scratch(Amtrak) and not take care of it, then expect it to be self-sufficient. Thats like trying to have a *** win a competition without training it.
Now, if the Government would pay for all of Amtrak's stations, all of the tracks Amtrak uses and the dispatchers, then maybe we could talk about self sufficiency.
No, the government has always treated Amtrak like crap, it doesnt matter who's in the Oval office, Dem or Republican, the Government in General doesnt give a crap!
Let the Airlines be self-sufficient, they're dealing with the same fuel price problem as every other mode of transport.
SCREW'EM!!!!
Posts: 143 | From: Richmond, VA | Registered: Jun 2004
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posted
Perhaps i should point out what has been written on certain other bulletin boards; which is that if one looks at the combined losses of the 6 largest airlines in the United States, the combined loss is something on the order of US $7 billion. This works out to $100 per passenger carried. Of course, you won't see any of the anti-amtrak folks citing that figure anytime soon, as 1. it conflicts with their bias, and 2. profit or loss of any form of passenger transport is measured in terms of seat-miles and passenger miles. Something makes me suspect, though, that these 6 airlines are experiencing losses per revenue passenger mile as well.
-------------------- "Travel is fatal to prejudice, bigotry, and narrow-mindedness, and many of our people need it sorely on these accounts. Broad, wholesome, charitable views of men and things cannot be acquired by vegetating in one corner of the Earth all one's life." Posts: 506 | From: Wisconsin | Registered: Mar 2002
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