Helios Global Logistics

In his address to the Senate Subcommittee on Aviation Operations, Safety and Security on 13 March, Calio pointed out the critical role airlines play in driving economic growth and job creation, and called on the government to address fundamental tax, regulatory and infrastructure challenges, which he claims are hitting the industry's long-term viability and global competitiveness.Too often, government policies, "exhibit indifference and, often, outright hostility to the industry," Calio told the Subcommittee. In its written submission, A4A points out the importance of international air cargo transportation: "The US traded a record $940 billion of merchandise by air last year, much of it in high value items, including $431 billion in exports. The value of a kilogramme exported by air was 129 times the value of a kilogramme transported by sea." A4A also points out that its airline members and their affiliates transport more than 90 per cent of all US airline cargo and passenger traffic. Taxes and fees, as well as unnecessary regulations, however "impose a hefty, ongoing drag on airlines and consequently their ability to serve the public," says Calio. He says that the federal aviation tax burden rose 30 times from 1972 to 2013. According to A4A, this hinders the industry's ability to grow and facilitate broader economic growth and job creation, putting it at a competitive disadvantage against foreign airlines. "Unhappily, airlines continue to be regarded as the go-to guy for financing the federal government," Calio states. Nor is there any comfort to be had from the US administration's fiscal year 2015 budget proposal which suggests that federal aviation taxes and fees will increase still further, by $4.2 billion a year. The inevitable outcome, if the administration is successful in pushing its budget through, will be "downward pressure on services and upward pressure on prices. This would not be a winning combination for shippers and air travellers," Calio warns.