november-2011

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© 2011 United Air Lines, Inc. All rights reserved. Your “go-to” app when you’re on the go. Make our new app your one-stop travel center. Scan this QR code for more information. The new United travel app is like a travel toolkit. You can book flights. Check in and store your Mobile Boarding Pass. Even see your flight status, including departure gate, seat map and upgrade priority list. It’s one travel app with many applications.
WELCOME ABOARD, and thanks for choosing United Airlines for your fl ight today. It’s no secret that the U.S. airline industry has been through rough times in the past decade, losing a total of $55 billion and laying off 160,000 workers during that time. We have endured high and volatile fuel costs, a global recession, and numerous natural disasters adversely aff ecting air travel. In the past year or so, we’ve seen some signs of hope. Industry trends like consolidation and capacity discipline have helped airlines begin to stabilize, but the industry continues to face serious challenges. On the rare occasions when airlines are profi table, they obtain only a razor-thin profi t margin. This is a sad state of aff airs for an industry that is such a powerful economic engine, driving $1.2 trillion in economic activity every year and connecting people, cargo and cultures around the world. Yet Washington continues to use airlines (and their employees, shareholders and customers) as a piggy bank to be CEO LETTER Stop Air Tax Now raided by government. Today, airlines and our passengers pay 17 different federal aviation taxes and fees in the U.S., which totaled $16.5 billion in 2010. Federal taxes have increased from 7 percent of the price of a typical ticket in 1972 to 20 percent in 2011. And this excludes income tax! How would your business do if Washington took 20 percent off the top before you saw a nickel? Our industry leads all others in having the greatest number of unique taxes and fees imposed upon it and its customers by Washington. Think about what you buy—milk, electronics, clothing, etc. None of these goods is taxed at a rate of 20 percent (and if they were, you might not buy them). Airlines are taxed as a sin, at a higher rate than alcohol, tobacco and fi rearms. Yet we are not a sin. We are an economic good that drives our economy and offers well-paying jobs. Moreover, airlines power the economies of hub cities and are economic lifelines to small and medium-sized communities. Yet Washington’s grab for our and our customers’ money is reaching unheard-of levels now. The Administration’s American Jobs Act proposes a new $100-per-fl ight tax that would cost $11 billion over 10 years. The proposal also seeks to increase the passenger security tax from today’s minimum of $2.50 per customer per fl ight segment to $7.50. This proposed increase would cost nearly $25 billion over 10 years. More than half that amount would not fund security, but would instead be applied to Washington’s debt. Why should airlines and their passengers be singled out to pay for Washington’s profligacy? If these major tax increases occur, the big losers will not be just our customers, who will be saddled with these new and increased taxes, but also small communities all over the country that will lose service as airlines become unable to absorb the losses caused by these taxes. These proposed additional taxes (which are on top of the 20 percent tax level currently burdening the industry) are job killers, because if they become law, the industry will be forced to lay off thousands of employees as it downsizes to eliminate routes and service that become unprofitable. For more information on what these taxes would mean to communities, customers and airline employees, go to www.stopairtaxnow.com. In the global world we serve today, U.S. airlines compete not just against each other, but also against foreign fl ag carriers. Many nations have an enlightened aviation policy. The U.S. has a benighted policy. It’s critical that we have a national aviation policy that supports, rather than hinders, U.S. airlines so we can continue to provide you with the service you want and our country and economy need. Thanks again for your business. We look forward to seeing you again on a future fl ight. PRESIDENT AND CHIEF EXECUTIVE OFFICER, UNITED AIRLINES HEMISPHERESMAGAZINE.COM • NOVEMBER 2011 13
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november-2011

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