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Airlines Say Obama Ticket Fee Plan May Hurt Demand

Feb. 10 (Bloomberg) -- 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.

Raising taxes paid by airlines means “fewer business trips are taken, tourism suffers,” Nicholas Calio, chief executive officer of the Air Transport Association, told the House aviation subcommittee yesterday. He called the increase in airline taxes since 1990 “breathtaking.”