Jetrader - May/June 2012 - 8

JT: How did A4A identify these five core components of the policy, and why are they viewed as the most vital to the industry’s success? NC: For many years, various stakeholders recognized the industry’s predicament but could not successfully execute practical steps to address the problems as most of these issues are controlled by the government. Ironically, three different federal panels over a 17-year period identified the same issues and proposed similar solutions, which gave us the blueprint to work from. We also had research conducted independently to ensure that the conclusions reached by the three federal panels on the fundamentals of the industry were both sound and up to date. JT: What are your thoughts on the European Union Emission Trading Scheme and its effect on U.S. airlines? NC: A4A and its members remain steadfastly opposed to the application of this cap-and-trade tax scheme to U.S. airlines and aircraft operators and are committed to seeing it overturned. A4A has

long maintained that world governments, as signatories to the Chicago Convention, are best situated to enforce international laws and obligations and drive a global solution within the International Civil Aviation Organization (ICAO). ICAO has authority to address violations of the Chicago Convention under Article 84 of that treaty and also is working to complete the global framework for aviation greenhouse gas emissions provisionally agreed at its 2010 Assembly. We fully support actions by the United States and many other countries to force the EU to halt the scheme. JT: The topic of the profitability of the airlines was a common theme throughout ISTAT Americas. What do you feel is the most critical link to realizing increased profitability throughout the airlines? NC: Normalizing the business environment by rationalizing the burdens imposed by our government, particularly in terms of excessive regulation and tax actions. Airlines and their customers currently pay 17 separate federal taxes and fees. Most

recently, there have been attempts to have airlines and our customers pick up the tab to reduce the federal budget deficit or to cover the cost for a payroll tax-cut extension, which have been rejected—but they keep coming back. The White House budget proposal for fiscal year 2013 again proposes to triple the security tax and add a $100 departure tax. These new taxes alone would cost the airline industry $36 billion over the next 10 years. The House Budget Committee also approved a doubling of the security fees for every segment fl own, as part of the FY13 House Republican Budget. Anyway you cut it, any increase for whatever purpose, does not make sense if scrutinized in context—in 2011, U.S. airlines made a profi t of $239 million—a number dwarfed by the size of the proposed tax increases. Treating airlines as the government’s tax collector negates the importance of our airlines to the U.S. economy, the state of the industry and how an increase in taxes would affect the industry, its customers and the economy.

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8 561088_Contrail publication of the International Society of Transport Aircraft Trading The official 1

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Jetrader - May/June 2012

Table of Contents for the Digital Edition of Jetrader - May/June 2012

A Message from the President
Q&A: Nicholas E. Calio, Airlines for America
Forecast at ISTAT Americas 2012 Beckons Bright Year Ahead
Fans, Financiers Fancy the Dreamliner on its ‘Dream Tour’
What’s Ahead for the Freighter Conversion Market?
Aircraft Appraisals
The International Appraiser’s Program
Remembering Bill Bath Index
Jetrader - May/June 2012 - cover1
Jetrader - May/June 2012 - cover2
Jetrader - May/June 2012 - A Message from the President
Jetrader - May/June 2012 - 4
Jetrader - May/June 2012 - 5
Jetrader - May/June 2012 - Calendar/News
Jetrader - May/June 2012 - Q&A: Nicholas E. Calio, Airlines for America
Jetrader - May/June 2012 - 8
Jetrader - May/June 2012 - Forecast at ISTAT Americas 2012 Beckons Bright Year Ahead
Jetrader - May/June 2012 - 10
Jetrader - May/June 2012 - 11
Jetrader - May/June 2012 - 12
Jetrader - May/June 2012 - 13
Jetrader - May/June 2012 - Fans, Financiers Fancy the Dreamliner on its ‘Dream Tour’
Jetrader - May/June 2012 - 15
Jetrader - May/June 2012 - What’s Ahead for the Freighter Conversion Market?
Jetrader - May/June 2012 - 17
Jetrader - May/June 2012 - 18
Jetrader - May/June 2012 - Aircraft Appraisals
Jetrader - May/June 2012 - 20
Jetrader - May/June 2012 - The International Appraiser’s Program
Jetrader - May/June 2012 - Remembering Bill Bath
Jetrader - May/June 2012 - 23
Jetrader - May/June 2012 - 24
Jetrader - May/June 2012 - 25
Jetrader - May/June 2012 - Index
Jetrader - May/June 2012 - cover3
Jetrader - May/June 2012 - cover4