"SFO balks at security tax"

Wednesday, February 9, 2005

SFO balks at security tax
Bush proposal would add to passenger fees.
By Mary F. Albert
The San Francisco (CA) Examiner


S.F. AIRPORT -- Airline and business representatives at San Francisco
International Airport came out against a proposal by the Bush administration
to almost double airport security taxes, saying the president has gone too
far.

Since Monday, when the administration submitted its proposed federal budget
to Congress, scores of airport representatives have balked at the idea of
passing on additional costs to air travelers to pay for federal aviation
screening operations.

"We definitely disagree that this is only a tax on travelers," said Jack
Evans, spokesman for the Air Transport Association, a trade organization
that represents the nation's largest airlines. "It is obvious to us that any
new tax that impacts ticket prices is a tax on airlines."
 
The increase in taxes would cost businesses around the nation an extra $400
annually, according to the National Business Travel Association.

Even so, local business representatives remain unsure about whether these
fees -- if approved by Congress -- would create lasting adverse effects on
the greater Bay Area's economy.

"On the domestic side [of travel], the increased taxes probably won't have
much of an impact because anywhere you go in the U.S. the fees will be the
same," said Laurie Armstrong, vice president of public relations for San
Francisco's Convention and Visitors Bureau. "The only place it would have an
effect is on the international traveler."
 
But in a city heavily dependent on international tourism, "People in the
visitor industry may very well be concerned about a tax that could dampen
the travel market," said Carol Piasente, spokeswoman for San Francisco's
Chamber of Commerce.

AIRPORT TAXES

Current airport security tax costs:

$2.50 for a nonstop, one-way ticket

$5 maximum for one-way ticket with multiple stops

$10 maximum for a round-trip ticket

New taxes in October '06 would cost:

$5.50 for a nonstop, one-way ticket

$8 maximum for a one-way ticket with multiple stops

$16 maximum for a round-trip ticket

Source: SFO


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