Air Transport News.

For more air transport news, data and analysis, please go to: http://www.airguideonline.com/professional.htm Aug 14, 2006

UK Parliament's Environmental Audit Committee yesterday called for heavier taxation on airline tickets to slow the growth of air travel and therefore its impact on the environment. "The government has no excuses for not raising air passenger duty," the committee stated, while also calling for a slew of other charges including differential landing fees based on aircraft fuel efficiency. "The government has the power to increase taxes on domestic flights: It should do so and as soon as possible," EAC wrote, adding that bilateral agreements should be negotiated so "additional taxes" are levied on international flights. These new taxes are necessary because based on current growth, aviation's share of UK CO2 emissions will soar from 5% currently to 24% by 2050. The committee said demand for flights should be managed to limit growth "to no more than the rate at which the industry improves its fuel efficiency, currently some 1%-2% a year." It also urged the Dept. of Transport to "rethink" its aggressive airport expansion policy, saying the aviation industry can only be allowed to grow "within strict limits." Aug 8, 2006

Since the US House was already in summer recess, even a slight change to the legislation by the Senate would have stalled it until fall. So senators agreed to pass it in its current form, voting 93-5 to change a frayed system that has left federal pension insurer Pension Benefit Guaranty Corp. in deficit by an estimated $23 billion. Lawmakers left open the possibility of drafting future legislation that could revamp the system further and perhaps give nonbankrupt airlines more time to fund plans. Northwest Airlines gave unequivocal support to the pension overhaul bill. "With employees making the difficult decision and sacrifice to freeze their pension plans, all of us looked to Congress for the additional time required to save our plans," Senior VP-Government Affairs Andrea Fischer Newman said. President and CEO Doug Steenland called the bill's passage "an important victory for our employees and a key milestone in the restructuring of our company." Aug 7, 2006

US Senate's pension overhaul bill gives all US companies seven years from 2008 to fully fund pension programs. But airlines that have frozen their plans, such as Northwest Airlines and Delta Air Lines, get 10 additional years (17 overall) to fund their plans fully. Other carriers get three additional years, or 10 overall, to complete funding. That led some lawmakers, particularly those representing Texas--home state of American Airlines and Continental Airlines--to complain that Northwest and Delta were being rewarded for mismanagement while AA, CO and other carriers not in bankruptcy were penalized. Aug 7, 2006