October 15, 2001
The Honorable Jeb Bush
Governor
State of Florida
The Capitol
Tallahassee, Florida 32399-0001
Dear Governor:
For the past several weeks we have
been coordinating with the major commercial airlines serving Florida to
develop a proposal for you and the Legislature to ensure that Florida
receives the highest service possible from the commercial airlines
during this time when they are cutting back their routes nationwide. We
believe it is imperative that Florida establish an incentive package
during the forthcoming Special Session of the Legislature which you have
called for October 22, 2001. As we are all aware, the highest level of
airline service possible is imperative if our tourism industry is to be
brought back to where it needs to be. As the recent Enterprise Florida
study showed, there has already been and is expected to be an even
greater impact on those service providers in Florida who directly
support the commercial airline industry.
Last week, Delta Airlines reported to
us that their system-wide cutback was seventeen percent (17%) of their
flights, while Florida had a twenty-seven percent (27%) cutback. Orlando
alone had a forty percent (40%) reduction in service from Delta. It is a
simple economic fact that during this time when some of our major
commercial airlines are actually fighting for their corporate life, they
will service those routes which are most profitable. By creating an
incentive package for the commercial airlines, we can assist our tourism
industry, assist airline service companies, and assist the employees of
the airlines and the service companies who reside in Florida.
In the proposals you have already put
forth for the Special Session, you have provided assistance for our
airports, which we support. But unless there is an incentive package for
the airlines, we will be building facilities and employing people while
at the same time our airline service will continue to dwindle as other
states enact incentive programs which will make routes to their
locations more profitable to the commercial airlines. We believe it is
imperative that while you provide assistance to the airports, you must
at the same time provide an incentive package to the commercial airlines
if we are to continue to have the appropriate level of services which
are essential to the revival of our tourism industry. To do one without
the other will simply not work.
The following are the items which we
believe, after consultation with the major commercial airlines, should
be included in the "Airline Economic Incentive & Stabilization
Act" which should be passed during the forthcoming Special Session
of the Legislature:
Abate the 6.9 cents per
gallon aviation fuel tax effective immediately through July 1, 2003.
Reinstate the proration
provisions in former Florida Statute 206.9825(2), F.S. for air
carriers that utilize mileage apportionment for the corporate income
tax.
Reinstate the fuel tax
credit for air carriers offering transcontinental jet service that
increase their workforce in Florida by 1000% and at least 250
employees. This should be retroactive to July 1, 2001 (formerly
section 206.9825(1)(b), F.S. 2000) to reinstate this provision which
expired.
- Catering provided to commercial airlines.
- Crew and hotel rooms rented and leased by
commercial airlines.
- Security services at airports.
- Airline ground support equipment.
- Airport construction.
There is no doubt that the continued
maximum service of commercial airlines is essential if our tourism
industry is to recover. As I have stated, commercial airlines are going
to fly those routes which they feel are the most profitable. The very
continued existence of some of our major airlines is at stake and they
simply will not service routes which are unprofitable. The incentive
package outlined above will, in the estimation of the commercial
airlines, make Florida routes more attractive to them.
If you have any questions or desire
amplifying information, please let us know. We very much look forward to
working with you to implement this very necessary incentive package for
the commercial airlines.
Kindest personal regards.
Sincerely,
Jon L. Shebel
President & Chief Executive Officer |
Fuel Tax
Talking Points
Impact of the Terrorist
Attacks on the U.S. Airline Industry and Its Customers
The
Highest State Jet Fuel Tax in the Nation
