WASHINGTON, July 30, 2018 – Airlines for America (A4A), the industry organization representing the leading U.S. airlines, today applauded Governor Nathan Deal’s executive order to suspend sales taxes on jet fuel, strengthening Georgia’s position in an increasingly competitive environment by embracing a business climate that values air transportation, promotes travel and attracts potential new carriers to the state.
“We applaud Governor Deal’s decision to issue an executive order that encourages the airline industry to continue to invest in the state’s future, leading to new and diverse flight options, lower fares, and greater opportunities for job growth at the world’s busiest airport,” said A4A President and CEO Nicholas E. Calio. “These improvements will benefit everyone who flies.”
Carriers continue to invest more into improving their product and customer experience than ever before, yet they must examine market forces such as consumer demand and the state’s tax burden before making these decisions. The executive order places Georgia among the increasing number of states that are making competitive decisions to lower jet fuel taxes in favor of growth, including North Carolina, Florida, and Arizona. For example, in the year following the elimination of jet fuel tax in North Carolina in 2015, flights in and out of the state grew four percent and travelers were able to take advantage of 31 new routes from a wide range of carriers.
Airlines also continue to collaborate with their airport partners to make critical investments in airport modernization. In the last decade, more than $11 billion in capital projects have been completed, are underway or approved to improve and expand the airport infrastructure in Atlanta, and this partnership will continue.
Previously, Georgia ranked eighth on the list of states with the most burdensome tax on commercial jet fuel, one of the largest expenses for the aviation industry. The state will now be competitive with other states without such taxes, including Texas, Ohio, and Delaware.
Annually, commercial aviation helps drive $1.5 trillion in U.S. economic activity and more than 10 million U.S. jobs. U.S. airlines fly 2.4 million passengers and more than 58,000 tons of cargo each day. Airlines for America (A4A) advocates on behalf of the American airline industry as a model of safety, customer service and environmental responsibility and as the indispensable network that drives our nation’s economy and global competitiveness.
A4A works collaboratively with the airlines, labor groups, Congress and the Administration to improve air travel for everyone.