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UPS blasts plan to triple jet fuel tax to fund Alaskan airports
US EXPRESS delivery giant United Parcel Service (UPS) has slammed plans to triple the jet fuel tax at airports in Alaska, a major air cargo stop off point that hosts the world's fifth busiest cargo airport ?Ted Stevens International Airport near Anchorage.
The tax that would first be doubled and then tripled is intended to cut the state budget deficit of US$2.7 billion. The increased tax will also cover gasoline and marine diesel and it would only affect domestic US and intra-Alaska flights, reported Varna's Wings Journal.
In a letter to Alaska Transportation Committee co-chairman Adam Wool, UPS vice president Nick D'Andrea expressed his disagreement with this decision as it would mean that UPS will pay taxes twice, since they are already charged landing fees.
"UPS already pays more than $7 million dollars annually in aviation user fees in the form of landing fees incurred at Ted Stevens International Airport. These fees go directly into the aviation infrastructure where we operate.
"The current fuel tax generated is paying for smaller airports, which UPS doesn't utilise, and which do not charge landing fees to sustain their airport. The proposal to triple the jet fuel tax is asking UPS and other carriers to subsidize airports we do not use.
"We also believe increasing the jet fuel tax could impact Alaska's role in the cargo industry. Currently, it is situated perfectly as UPS's gateway to and from Asia. We have a good relationship with the airport, and Alaska has always had a fair cost of doing business."
"We aren't opposed to paying user fees for infrastructure we use, but subsidizing other airports we don't use and who do no levy landing fees is not a sustainable way to fund Alaska's aviation infrastructure."
The tax that would first be doubled and then tripled is intended to cut the state budget deficit of US$2.7 billion. The increased tax will also cover gasoline and marine diesel and it would only affect domestic US and intra-Alaska flights, reported Varna's Wings Journal.
In a letter to Alaska Transportation Committee co-chairman Adam Wool, UPS vice president Nick D'Andrea expressed his disagreement with this decision as it would mean that UPS will pay taxes twice, since they are already charged landing fees.
"UPS already pays more than $7 million dollars annually in aviation user fees in the form of landing fees incurred at Ted Stevens International Airport. These fees go directly into the aviation infrastructure where we operate.
"The current fuel tax generated is paying for smaller airports, which UPS doesn't utilise, and which do not charge landing fees to sustain their airport. The proposal to triple the jet fuel tax is asking UPS and other carriers to subsidize airports we do not use.
"We also believe increasing the jet fuel tax could impact Alaska's role in the cargo industry. Currently, it is situated perfectly as UPS's gateway to and from Asia. We have a good relationship with the airport, and Alaska has always had a fair cost of doing business."
"We aren't opposed to paying user fees for infrastructure we use, but subsidizing other airports we don't use and who do no levy landing fees is not a sustainable way to fund Alaska's aviation infrastructure."
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