The Air Transport Association of America (ATA) responded to comprehensive financial reform legislation reached by Congress by saying, “We commend the congressional conference committee and specifically Chairmen Lincoln and Peterson for completing their work of the last two years by obtaining agreement to send President Obama a strong bill that will put a stop to Wall Street’s reckless and excessive speculation in oil markets.” ATA is the industry trade organization that represents many of the U.S. air carriers.
The statement, issued by ATA president and CEO James May, stated that during the severe oil price swings of 2008 the ATA Board of Directors established several goals that have been included in the legislation. He cited controls on “excessive speculation” by establishing tough regulatory oversight and transparency in the commodity markets; and increased transparency by requiring exchange trading and clearing of most derivatives and other contracts while preserving the ability of bona fide physical hedgers to continue to hedge their own commercial risks.
“Fuel costs shot up $42 billion between 2003 and 2008 due in large measure to reckless speculation. While fuel remains the airlines’ highest expense, the dramatic swings in prices will be significantly contained by enactment of this measure. We urge Congress to move forward swiftly to send this bill to the President for signature,” May said.