Browse > Home / Aeronautics News / Air Transport Association Calls on Congress to Address Fuel Price Crisis

Air Transport Association Calls on Congress to Address Fuel Price Crisis

Written by thomas · Filed Under Aeronautics News 

June 25, 2008

thomas

Cites Crippling Effects on the U.S. Economy and Environmental
Investments

WASHINGTON, June 24 /PRNewswire-USNewswire/ — The Air Transport
Association of America (ATA), the industry trade organization for the
leading U.S. airlines, today testified before the Senate Committee on
Commerce, Science and Transportation to outline its continued, proactive
efforts to further reduce the industry’s greenhouse gas (GHG) emissions
while identifying the severe economic consequences of the current “fuel
price crisis.”

ATA Executive Vice President and Chief Operating Officer John M. Meenan
presented statistics demonstrating that the airline industry represents
just 2 percent of all domestic GHG emissions, as compared to 25 percent for
the balance of the transportation sector. He testified that the investments
the airlines have made that have resulted in the industry’s outstanding
environmental track record are being threatened by the historically high
cost of jet fuel. Meenan urged Congress to craft policies that will help
solve the problem, pointing out the severe consequences of inaction.

Meenan told the committee that the industry continues to build on its
impressive record of improving fuel efficiency and reducing its GHG output
despite the high costs of jet fuel. U.S. airlines improved fuel efficiency
by 110 percent between 1978 and 2007, resulting in 2.5 billion metric tons
of carbon dioxide savings – roughly equivalent to taking 18.7 million cars
off the road each of those years. Further, U.S. carriers burned almost 3
percent less fuel in 2007 than in 2000, but carried 20 percent more
passengers and cargo on a revenue ton mile basis.

According to ATA, fuel prices now average 30 to 50 percent of airline
operating expenses, costing $41.2 billion in 2007, and these costs are
projected to grow to $62 billion in 2008. These costs significantly
threaten the U.S. airline industry’s growth and ability to invest in fuel
efficiency improvements, a sign of dire consequences for the United States.

“The nation’s airlines expect to lose in the range of $10 billion this
year – a loss on par with the worst year in this industry’s history,” said
Meenan. “High fuel prices are the sole reason.”

In addition to its fuel efficiency improvements, statistics show that
the growth of the U.S. economy is strongly influenced by the growth of the
commercial aviation industry. Annually, the commercial aviation industry
drives $1.1 trillion in economic activity, contributing 5.2 percent of U.S
gross economic output. The Bureau of Transportation Statistics recently
assessed that in 2006, 5.3 percent of the total value of international
merchandise trade was shipped by air and that air shipments accounted for
32.4 percent of the value of all exports, more than any other
transportation sector.

“This nation’s economy is inextricably linked to the viability of its
air transportation system. If the airlines continue to spiral downward, so
will the economy,” said Meenan. “Aviation contributes $690 billion to the
U.S. GDP – that’s 10 million new jobs.”

Meenan repeated the ATA call for Congress to take action to support
U.S. airlines’ ongoing commitment to the environment. Congress should
modernize the aging air traffic control system, reinvigorate environmental
aeronautics R&D programs and spur further commercial development of
alternative jet fuels. Meenan stressed the importance of immediately
addressing the fuel price crisis at this critical juncture.

“Unlike the temporary revenue hits from 9/11 and other one-time demand
shocks, the airlines now are facing a massive structural cost increase,”
said Meenan. “Not even Chapter 11 can lower the price of fuel. More than
14,000 airline jobs have been cut so far this year, and that is just the
tip of the iceberg. Scores of communities stand to lose all scheduled air
service by early next year. More airlines – in addition to the nine that
have already filed for bankruptcy or stopped operating – may simply shut
down.”

ATA airline members and their affiliates transport more than 90 percent
of all U.S. airline passenger and cargo traffic. For additional information
about the industry, visit http://www.airlines.org.

SOURCE Air Transport Association

» Próximo Post - Hawker Beechcraft Plans Mexican Assembly Plant
« Post Aneterior - LANVACATIONS Announces Premium Business Packages to Peru Priced From $1399

Comments

¿Tiene algo que decir?

You must be logged in to post a comment.