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Senate Democrats ask airlines, did they profit from FAA shutdown?

WASHINGTON — Senate Democrats asked 12 of the nation's largest airlines on Thursday to reveal how much money they're making from increased airfares during the ticket tax holiday created by the partial shutdown of the Federal Aviation Administration.

"We are writing to confirm whether your company is one of the airlines generating profits by exploiting its own customers," Sens. Jay Rockefeller, D-W.Va., and Maria Cantwell, D-Wash., said in the letters. "Like the 'ancillary fees' that many airlines now charge for blankets, checked luggage, priority seating and itinerary changes, this recent fare increase has further damaged the industry's relationship with airline passengers."

Rockefeller is chairman of the Senate Commerce, Science and Technology Committee, which has oversight of the FAA, and Cantwell is chairwoman of the aviation subcommittee.

The FAA partially shut down last week after a legislative stalemate let its operating authority to expire. Nearly 4,000 FAA employees have been furloughed, almost 200 airport and other aviation construction projects have been halted, and an estimated 70,000 construction workers, engineers and others who worked on those projects have been laid off or are expected to be laid off. Air traffic controllers remain on the job.

"These are people who work hard and were right smack dab in the middle of a construction season," Transportation Secretary Ray LaHood told reporters after a White House meeting on the shutdown. "This is not the time to be laying off 70,000 people."

Airlines' authority to collect ticket taxes expired with the shutdown. The Transportation Department estimates the trust fund that pays for most of the FAA's programs, including air traffic control, is losing $30 million a day during the shutdown. But most passengers aren't benefiting. All but a few carriers immediately raised fares in amounts roughly equal to the taxes.

The airlines sent letters are Delta Air Lines, United-Continental, American Airlines, Southwest Airlines, US Airways, Alaska Air Group, JetBlue Airways, Republic Airways Holdings, Hawaiian Airlines, Spirit Airlines, Virgin America and Allegiant Air.

Senate Democrats ask airlines, did they profit from FAA shutdown? 07/28/11 [Last modified: Friday, July 29, 2011 12:29am]
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