United and Frontier asking Colorado lawmakers for jet-fuel tax break

09/17/2008 | Denver Post, The

Officials from United Airlines and Frontier Airlines are seeking legislative relief from high jet fuel costs in Colorado, where taxes are computed at 2.9% of cost rather than a flat amount per gallon, helping to boost tax collections by more than 100% in five years. "The fuel tax, it's a windfall," Frontier CEO Sean Menke told lawmakers on Tuesday. John Heimlich, vice president and chief economist for the Air Transport Association, testified that falling prices for crude oil don't tell the whole story for airlines, because only a percentage of each barrel is refined into jet fuel. "Don't think that seeing the crude price is what airlines have been paying," Heimlich said.

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