US PRESIDENT Clinton has renewed the 10%airline ticket tax to the end of the fiscal year, pending a longer-term review of new proposals for funding the Federal Aviation Administration.
The ticket tax lapsed again at the end of 1996 without agreement in Congress on a replacement funding method, coming down to a choice between a levy on fuel or fees based on usage of air services.
The seven big network carriers broadly support user charges, but smaller carriers are lobbying against them. Nine airlines, including low-cost carriers and charter operators, have set up the Air Carriers Association of America to lobby on the issue, arguing that they would suffer unduly from a domestic user-fee.
Source: Flight International