American Airlines seeks to extend cap on jet fuel sales tax
While U.S. airlines are pushing the Obama administration to renegotiate the Open Skies Treaty, citing that Gulf carriers Emirates, Etihad and Qatar receive unfair government subsidies, American Airlines is pushing to get a break of its own in North Carolina.
An American Airlines lobbyist told Charlotte, NC business and government leaders on Thursday that American is seeking to receive sales tax exemption on jet fuel this year.
North Carolina has a jet fuel cap tax of $2.5 million a year and that tax is set to expire later this year. Presently, NC refunds airlines any fuel sales tax they pay beyond $2.5 million. If the tax break isn’t extended then American’s fuel bill could rise by $15.5 million for a grand total of $18 million.
If the tax break isn’t extended, it would make Charlotte the third most expensive hub in terms of jet fuel, trailing LAX and ORD. DFW isn’t on the list despite it being American’s largest hub because the State of Texas does not charge a jet fuel tax.
So I guess Delta, American, and United can argue against subsidies and government breaks when it isn’t beneficial to them.
“Fair” is always in the eye of the beholder, I guess…
Source: Charlotte Observer