The airline industry and one of its prominent allies are gearing up to fight a possible push in the U.S. Congress to tax baggage fees and other air-travel charges as a way to generate additional federal revenue.
Nicholas Calio , who led Citigroup Inc. ’s efforts to shape financial regulations and served as top congressional liaison for U.S. presidents George H.W. Bush and George W. Bush , will become chief Washington lobbyist for the nation’s major airlines.
Airline industry officials said an increase in passenger-ticket taxes being considered by President Barack Obama would reduce travel demand and add to what the industry’s chief lobbyist called two decades of burdensome levies on carriers.
Air-traffic controller furloughs were suspended yesterday as the U.S. Federal Aviation Administration acted on legislation designed to work around across-the-board spending cuts that kicked in last month.
U.S. Transportation Secretary Ray LaHood said airlines shouldn’t have raised fares by the amount of excise taxes they stopped collecting July 23, when the Federal Aviation Administration’s revenue-raising authority expired.