Fri February 11, 2005 3:30 AM GMT+05:30
By John Crawley
WASHINGTON (Reuters) - U.S. airlines formally warned the Bush administration on Thursday that a White House proposal for passengers to pick up another $1.5 billion in aviation security costs would jeopardize jobs and hurt financially fragile carriers.
Airlines also said they would intensify lobbying to derail the proposed hike in Congress, just like they did last year when they helped scuttle an administration plan to make the airlines pay an additional $400 million in security related expenses.
"Bluntly put, current government policies imposing excessive taxes on the airline industry are crippling a vital segment of our economy," James May, chief executive of the Air Transport Association, the leading airline trade group, said in a letter to Treasury Secretary John Snow and other administration officials.
May estimates the fee increase could further undercut the health of airlines, putting up to 20,000 jobs at risk and threatening service to small communities. <snip>
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