US cargo tax takes off

AROUND 10,000 airline jobs in the US could be axed if new federal taxes aimed at reducing the federal budget deficit come into force.

Among the proposals from the White House, and being considered by a Congressional committee, is a tax of US$100 per take-off for both passenger and cargo flights.

Airlines say the move would also limit flights to and from smaller markets.

Carriers already pay 17 different taxes and fees, officials from United Airlines and American Airlines said. Aviation officials are also criticising the fact that that much of the tax money would go to deficit reduction and not improvements in the airline industry or to airline security.

Air Transport Association claimed that wider job losses in aircraft manufacturing, airports and other supporting businesses could total 181,000.