Washington, D.C. - Congressman Kevin Brady (R-The Woodlands), whose district is home to many employees of Houston-based Continental Airlines, joined today with fellow Texan Pete Sessions (R-Dallas) and Congressman Gregory Meeks (D-New York City) to introduce legislation that would help preserve America's critical air transportation infrastructure.

 

H.R. 1380, The Jet Fuel Tax Suspension Act, offers immediate relief to U.S. air carriers by providing a temporary war suspension of up to two years on the federal jet fuel tax of 4.3 cents per gallon. The measure would provide $700-800 million in relief each year.

 

"Like America's highway transportation system, a strong and reliable air transportation system is critical to our economy. At this point, with America poised to leave the recession behind, we can ill afford a rash of airline failures that would throw thousands more out of work and harm countless communities dependent on tourism, business travel and the shipping of American goods throughout the world," says Brady.

 

"Temporarily suspending the jet fuel tax is an effective and immediate way to get critical life-sustaining relief to carriers and the communities that depend upon them." 

Brady also supports measures providing prompt federal reimbursement to airlines for government mandated security measures such as reinforced cockpit doors, as well as the continuation of War and Terrorism Risk Insurance assistance Congress provided airlines after September 11.  

 

The airline industry will lose an estimated $10 billion this year -- half due to the war on terrorism in Iraq. Brady believes the three relief measures taken together will help the airline industry weather the war while keeping pressure on them to make fundamental restructuring changes needed to return the industry to profitability.   

 

In the past year, spot fuel prices have more than doubled –  to  $1.20 per gallon in February -- an increase not seen since the Persian Gulf War buildup in the fall of 1990. According to the Air Transport Association, jet fuel represents the second largest expense to the airline industry.

 

Current events are leading many Americans to travel less, crippling the airline industry.   This coupled with increased costs associated with implementing needed security measures and the rise in jet fuel prices threatens several carriers with bankruptcy and collapse. 

Houston-based Continental Airlines  announced the lay off of 1200 more employees last week. 

 

Brady is serving his fourth term in Congress and serves on the tax-writing Ways & Means Committee which oversees tax reform, Social Security, Medicare, international trade, welfare and unemployment issues.