The US General Accounting Office (GAO) has warned that smaller US airlines would be hurt by a "user-fee" plan proposed by seven of the major US carriers.
The seven airlines, which include United Airlines, American Airlines and Delta Air Lines, say that the fee should be used as an alternative to the current 10% airline-ticket tax, which is due to expire on 31 December. The excise tax helps fund US aviation services.
The investigative arm of the US Congress says that the user-fee formula would shift $600 million in costs to the low-fare airlines. The major air carriers argue that the existing ticket tax favours the new entrants.
"The proposal would dramatically redistribute the cost burden among airlines and could have substantial implications for domestic competition," says the report.
Source: Flight International
