W
elcome aboard, and thanks for
flying United.
We are a global airline with
an unbeatable route network that allows
us to fly our customers to just about
anywhere they want to go. We’re proud to
provide safe and reliable air transporta-
tion to more than 360 airports across six
continents around the world.
Our global reachalsoputs us incompeti-
tion with carriers from around the world,
many of which benefit from a supportive
tax and regulatory climate in their respec-
tive countries. Unfortunately, the taxes
and regulations imposed by the United
States government onU.S. airlines are just
the opposite.
Forexample,whentheaveragecustomer
booksaflightonunited.com,thatcustomer
is subject to a tax based on the price of the
ticket, a fee for each segment they fly, a fee
for security, a fee for the airports, a fee for
the agent who reviews their passport (if
the flight is international) and o en even
more taxes and fees. Additionally, under
the “Full Fare Advertising” rule, airlines
are required by law to include all of the 17
different taxes and fees that the U.S. gov-
ernment imposes on air travel in the price
whenwe advertise our fares, thus covering
up the extraordinarily high level of taxes
and fees imposed by our government. This
government-imposed lackof transparency
is misleading and unfair to customers.
Those 17 different taxes and fees added
up to nearly $19 billion across theU.S. avia-
tion industry last year. Whilewe recognize
that taxes and fees fund critical services,
the systemlacks a rational approach.Many
modes of transportation use Customs,
Agriculture and Immigration resources,
but aviation customers and airlines pay
disproportionallymore for using those ser-
vices. Land, sea, car, rail and bus travelers
pay li le or nothing. The taxation system
across transportationmodes is broken, and
airlines and our customers are paying the
price for this irrational structure.
As an airline, we are doing our part to
transform our industry into a successful,
profitable business, but the overall level of
taxation that airlines and our customers
paymust be fair, rational, transparent and
proportionate to our use of the system.
As Washington talks about simplify-
ing the current personal and corporate
tax structure, it only makes sense to do
the same for the taxes and fees airlines
and our customers pay. Simplifying and
restructuring the current tax systemwill
benefit customers and airlines and allow
us to compete more successfully with
foreign carriers.
I want to close by thanking you for your
business. We hope to see you on board
again soon.
Aviation Tax Reform
CEOLETTER
CHAIRMAN OF THE BOARD, PRESIDENT
AND CHIEF EXECUTIVE OFFICER,
UNITED AIRLINES
10
NOVEMBER 2013
•
HEMISPHERESMAGAZINE.COM
