Gulf carriers have breathed a sigh of relief after the U.S. Senate ditched a provision which would have imposed a tax on some international airlines.
Introduced by Georgia senator Jonny Isakson, it was thought to be mostly targeting the big three Middle Eastern carriers and was roundly criticized by global aviation groups.
That led to threats of reciprocal action to tax US airlines around the world.
Groups including IATA, the U.S. Travel Association, and the U.S. Airlines for Open Skies, which comprised Hawaiian Airlines, JetBlue and cargo airlines, were against the tax plan.
The US Travel Association welcomed its ditching from the tax overhaull.
"A half-baked measure that could’ve impacted both tax reform and travel was recklessly tossed on the Senate’s lap, and wisely disposed of," said U.S. Travel Association EVP Jonathan Grella in a statement.
The Isakson amendment would have added about $200 million in new tax revenue for the government.
"Foreign airlines should not receive preferential tax treatment if their countries choose not to open their markets to U.S. companies," Isakson previously said, adding that the provision would have helped ‘protect Georgia airline employees’ alluding to the home base of one of the ‘Big 3’ US carriers, Delta Air Lines.
