Trade group Airlines for America has called on New Jersey lawmakers to block proposed legislation to hike the rate of jet fuel tax, effectively increasing the rate to almost 18 times the current level.
A4A also warned any move to use the tax revenues to fund non aviation related infrastructure projects would violate federal law.
"Commercial aviation is vital to the health of New Jersey’s economy, supporting nearly 150,000 jobs in New Jersey and driving US$22.1 billion in economic activity," said A4A senior vice president and general counsel, David Berg.
"Efforts to hike the effective jet fuel tax rate will jeopardise jobs, air service options and the affordability of airfare and shipping for New Jersey families and businesses – while leaving the state at a significant competitive disadvantage."
Berg said failing to abide by Federal Aviation Administration rules over the use of tax revenue could result in serious sanctions imposed by the FAA or the US Department of Transportation which could lead to the withholding of grants for airport and highway infrastructure projects.
"Funding roads, bridges or any other non-aviation related project on the backs of airline customers is nothing more than a bait and switch, and a clear violation of federal law," said Berg. "We urge lawmakers reject any attempt to saddle airlines, our employees and their own constituents with this unnecessary jet fuel tax hike," he said.
