A4A Testimony by Tom Hendricks, SVP for Safety, Security and Operations Before the Subcommittee on Homeland Security, Senate Appropriations Committee

Commercial aviation helps drive more than 10M American jobs and 5 cents of every dollar of U.S. GDP
Commercial aviation drives more than $1 trillion per year in economic activity
In 2012, U.S. airlines moved more than 48,000 tons of cargo per day
In 2012, the value of a kilogram of U.S. merchandise exported by air averaged 121 times the value exported by sea
For every 100 airline jobs, some 360 are supported outside of the airline industry
Federal taxes constitute $61 – or 20% – of the price of a typical $300 domestic round-trip ticket
In 2011, U.S. airlines carried 16 percent more passengers and cargo using 10 percent less fuel than in 2000
Domestically, airlines drive 5% of economic activity but account for 2% of man-made GHG emissions
From 2000-2011, airlines reduced GHG emissions by 11% while transporting 16% more passengers and cargo
From 1975-2011, U.S. airlines and their partners reduced significant noise exposure by 99%
Commercial air travel is the safest form of intercity transportation in the United States
In the most recent decade, scheduled air service on U.S. airlines was seven times safer than in the 1970s
From 2000-2012, U.S. airlines improved the on-time arrival rate from 72.6% to 81.9%
From 2000-2012, U.S. airlines reduced the flight cancellation rate sharply from 3.30% to 1.29%
Airfares are a bargain: From 2000-2012, U.S. CPI rose 33% while average domestic fare rose just 14%
Adjusted for inflation, the average round-trip domestic airfare fell 15% from 2000
2007 domestic flight delays cost the United States approximately $31 billion
In 2012, the value of U.S. merchandise exported by air reached an all-time high of $427B
In 2012, U.S. exports of air-travel services reached an all-time high of $39.5B, driving a $5.1B trade surplus
In 2012, U.S. passenger and cargo airlines spent more than $50B on fuel, averaging 36% of operating expenses
In 2012, U.S. airlines posted the lowest annual rate of mishandled baggage ever recorded
FAA projects U.S. air travel demand to top 1 billion passengers in 2027
In 2012, US airlines flew 83.4 million passengers in scheduled international service - a record high
In 2012, the total value of merchandise exported from or imported to the United States by air exceeded $927 billion
In 2012, 7.15 teragrams of merchandise was exported from or imported to the United States by air

	A4A Testimony by Tom Hendricks, SVP for Safety, Security and Operations Before the Subcommittee on Homeland Security, Senate Appropriations Committee
	PubZone1 March 21, 2012 Balancing Prosperity and Security: Challenges for U.S. Air Travel in a 21st Century Global Economy Chairman Landrieu, Ranking Member Coats and Members of the Subcommittee, thank you for inviting us to appear at this timely and important hearing. The members of Airlines for America (“A4A”) and their affiliates transport more than 90 percent of all U.S. airline passenger and cargo traffic. That traffic is carried on both domestic and international networks. Speaking on behalf of America’s airlines, the subject of today’s hearing is both timely and critical and we commend the subcommittee for allowing us to provide our views. OVERVIEW Whether we are focusing on promoting travel within our country or to our country, one factor predominates: the ease of the traveler’s experience. Hassles are the enemies of expanding travel. We must also keep in mind that the perception of a hassling experience can drive travel decisions. Domestic and international travel is immensely important to our overall economy. It contributed $1.1 trillion to our economy in 2010 and was directly responsible for nearly 7.5 million American jobs. Sixty million international travelers visited our country that year. They spent an estimated $134 billion while they were here and helped generate significant levels of economic activity for those surrounding destination areas. And while the economic benefits of foreign visitors to the United States are impressive, they are not as great as they could be. The U.S. market share of international travelers’ spending worldwide fell from 17 percent in 2000 to a little more than 11 percent in 2010. This is a worrisome decline. President Obama’s recent travel-and-tourism executive order attributed this decline to three factors: Increased international competition; Changing patterns in global development; and To some degree, more stringent security requirements imposed after 2001. Having identified the issues hindering our competitive position, we need to act promptly and decisively to make travel and tourism promotion a national priority without compromising on security and safety. This should be a centerpiece of a national airline policy. A strong national airline policy would restore and enhance U.S. airline industry viability and enable it to increase air service across the nation, boost economic growth, expand exports and create more high-paying U.S. jobs. NEEDED ACTIONS Several basic considerations should guide a new national travel-and-tourism strategy: First, security and safety cannot be compromised in any effort. U.S. government agencies with border control responsibilities, however, have demonstrated that they have the experience and ability to balance the need to maintain security and simultaneously reduce barriers to travel. Second, while impressions may not always be accurate, they count mightily in the travel and tourism business. Frustration about obtaining a visa or the length of the line at an airport of entry or security checkpoint can easily dissuade foreign travelers from visiting the United States or Americans from taking domestic trips. Third and related to the point above, many countries have entry procedures that travelers regard as more predictable and less burdensome than ours. These impressions affect travel decisions. Fourth, other countries are competing hard for tourists. They have made the national commitment to attract foreign visitors. In some instances, these destinations have only emerged on a significant scale in the last five or ten years. They thus have the cachet of newness, a potent competitive advantage. Fifth, globalization is generating greater disposable incomes—and, therefore, the means to travel—in areas of the world that historically have not been the sources of significant numbers of visitors to the United States. To be realistic, travel to the United States may be viewed in those areas as something less than a priority. This is a demanding environment. America must sharpen its competitive edge if we are to expand the employment and economic benefits that communities throughout the United States realize from travel and tourism. To broaden these opportunities, the U.S. government needs to: Speed the issuance of visas, particularly for high-growth countries such as Brazil, China and India. Expand the Visa Waiver Program to additional countries where security assessments support such expansions. Expand TSA’s Pre√ program at domestic passenger screening checkpoints. Recognize, on a reciprocal basis, other countries’ trusted-traveler entry programs that mirror CBP’s very well-received Global Entry Program. Consideration should also be given to expanding trusted-traveler programs to specific categories of foreign passengers, such as business travelers, who frequently travel to the United States. Speed the processing of passengers entering the United States. This will require more CBP staffing to accommodate greater numbers of international travelers. Modernize CBP’s information technology systems to better support its passenger processing responsibilities. Avoid diverting CBP staff from existing airports of entry and overseas preclearance locations to provide additional personnel for land-border crossings or to open new preclearance locations. Diversion of these limited resources would delay the processing of air travelers arriving at our busiest airports of entry, a result that would tarnish our reputation as a desirable travel destination. CONCLUSION There is a common recognition of the need and the benefits of promoting travel and tourism. We look forward to working with the Subcommittee to achieve those benefits. PubZone2	A4A advocates measures to support aviation safety, security and well-being.