The impact on cheap travel, particularly cheap airplane tickets, cheap vacation packages and discount travel packages is uncertain if the U.S. government follows airline industry recommendations and repeals taxes and rolls back recent consumer protections and other rules.
A trade association (Airlines for America) which represents the countrys largest airlines is pushing for the adoption of a National Airline Policy which it contends is in the national interest.
Airlines have consistently come out against taxes and fees, particularly those paid by passengers for security. Airfares are currently subject to 17 different government taxes and fees, increasing the average round trip ticket price by about $61.
The association is pushing forward an agenda that includes:
Reducing taxes
Reforming regulations
Modernizing the air traffic system
Stabilizing energy prices
Making changes to empower U.S. carriers to be more competitive with foreign airlines
Airline advocates point out that over the last 20 years that every major airline that was in existence is either no longer in business, or gone bankrupt. Between 2000 and 2010 U.S. airlines lost $55 billion and 140,000 jobs, equal to one third of its workforce.
Recently airlines have done better and have hired an additional 10,000 employees in 2012.
Higher (than a year ago) fuel prices continue to challenge airlines finances, but they have aggressively managed capacity and are charging increased prices on flights that are often full. Ancillary income earned from checked bags and other extras is growing.
Airline revenues are rising this year and a slim profit is forecasted for the 10 largest U.S. airlines.
The industry association has targeted a number of regulations it wants repealed, including consumer protections put in place last year as part of passenger rights initiatives and pending legislation that would improve passengers ability to make price comparisons. Airlines also want to see the popular rule that financially penalizes airlines for extended ground delays overturned.
Airlines are pushing for a revision in rules that limit pilot flight time and require student pilots to have at least 1,500 hours of experience before becoming co-pilots on commercial flights.
Though airlines were officially deregulated in 1978, the airline association claims that the airline industry remains one of the most regulated businesses in the country.
Airlines for America views the creep of foreign carriers as insidious. It contends that as more international airlines add routes to additional American cities that they are taking away international routes from American airlines. Such routes are often where the greatest profits are and, according to the association, subsidize small and medium size routes with the United States.
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