BTC STATEMENT

For Immediate Release

$1.5 Billion Aviation Security Tax Is A Reckless Policy Proposal

National air transportation policy urged

RADNOR, PA., January 29, 2005-The Business Travel Coalition (BTC) today called on the Department of Homeland Security (DHS) to immediately abandon its drive to raise aviation system security taxes by $1.5 billion dollars annually, or by more than 50%. The domestic U.S. commercial air transportation industry is in a state of deepening crisis and is entering its fifth straight year of multi billion dollar losses. A critical infrastructure is at growing risk of collapse.

Despite that this initiative is intended to be a security ticket tax on individual travelers, in the current and projected worsening pricing environments, virtually all of the $1.5B tax increase would have to be absorbed by airlines. Legacy airlines and low-fare airlines alike would be required to fund this $1.5B tax increase out of, in most cases, rapidly dwindling cash reserves; on the backs of already beleaguered employees; or through deferral of planned enhancements to flight safety and aircraft maintenance programs.

BTC chairman Kevin Mitchell stated, ?DHS is apparently either unaware of the anemic airline industry pricing environment, or does not understand the economics of the industry. In either case this latest proposed major tax burden could have devastating consequences for the airlines and the businesses and communities that depend on a financially viable air transportation system.?

The Coalition calls upon the federal government to impose a moratorium on new aviation system taxes and fees until there is a comprehensive review of the industry and the development of a coherent national air transportation policy. Such a policy would provide the framework within which to evaluate taxation and other government policies, and balance competing priorities. Today's piecemeal approach to aviation policy is economically destructive, according to BTC.

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Contact Kevin Mitchell | 610.341.1850 | btckevin@xxxxxxxxxxx< /st1:PersonName>

Founded in 1994, the mission of the Business Travel Coalition is to lower the long-term cost structure of business travel. BTC seeks to bring transparency to industry and government policies and practices so that customers can influence issues of strategic importance to them. Learn more about BTC at http://btcweb.biz/.

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BTC Opposes Aviation Security Tax

BTC STATEMENT