Monday, February 13, 2012

http://www.reuters.com/article/2012/02/13/us-usa-budget-transport-idUSTRE81C1BP20120213

In Obama's recent budget proposal, he would like to raise certain airline fees for carriers, passengers, and airports as part of the deficit reduction plan. This would create more costs for the airlines and the passengers, but less costs for taxpayers. The proposal estimates $32 billion in new fees over the next ten years. Although this is obviously a substantial amount of money, in regards to the current budget deficit it is minuscule (especially if it is over ten years). However, the increases are also relatively small- $5 one-way ticket fees for bag screening (up from current $2.50) that would increase to $7.50 by 2018, a $100 departure fee for all airlines, and a grant cut to airports of $2.4 billion over the 10 years. Do you think the benefit of $32 billion in deficit reduction outweighs the added costs to passengers and airlines?

4 comments:

  1. I think it's crucial to take sall steps to reduce the 4 trillion debt. Airplane fares have been increasing for the past years due to oil, and the airplane companies. People who travel on planes already know that the fees are going to increase continuously. The $5 increase each way is not a surprise compared to when airports started charging for 2nd checked luggeges. With that said, I think it's a painful yet reasonable way to attack the deficit.

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  2. I agree with Sam. Something has to be done to reduce the debt and we need to start somewhere. I personally dont fly much so I dont care at all and I think the people that I do know wont mind paying a little extra to fly.

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  3. I personally would dislike these kind of increases because I fly often, which is already costly and continues to increase due to oil and other factors so additional increases are expected but not ideal for constant travelers. Sam is right that we need to start somewhere and while it will be a nuisance at least its an attempt at reducing the deficit.

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  4. I think this is a bad idea. The airline industry is a huge part of our society. It is important not only to vacationers and other for personel travelers but for business too.

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