RAA Alarmed by New Tax Plan

 - November 1, 2011, 9:00 AM

The Regional Airline Association has urged Congress to reject two new taxes on airline passengers proposed by President Obama in late September.

One would triple the security tax paid by airline passengers and the other would amount to a $100 per flight tax on each departure regardless of the size of the aircraft.

The RAA claims the new taxes, estimated at $900 million in the first year alone, could cause sharp service reductions at all U.S. communities, result in the outright elimination of scheduled air service at potentially hundreds of small- and medium-size communities and threaten the job security of 53,000 airline workers.

“The context and math here is pretty easy to understand,” said RAA president Roger Cohen. “The new per-flight tax alone would cost more than all regional airlines combined likely earned last year…”