This time of year, the Alaska Legislature receives plenty of guests on \u201cfly-in\u201d receptions. Groups like the Alaska Chamber of Commerce and the Bristol Bay Borough arrive by jet, stopping in Juneau for a few days to talk with Legislators about the issues that matter to them most.<\/p>\n
Last week, one group arrived with the name of their organization emblazoned on the side of a jet.<\/p>\n
For Alaska Airlines, one of the biggest issues is the state\u2019s planned hike in fuel taxes, something that would significantly affect the company\u2019s operations in Alaska, said Joseph Sprague, Alaska Airlines\u2019 vice president of communications and external affairs.<\/p>\n
\u201cWe are very concerned with (House Bill 249),\u201d he told members of the Alaska House Transportation committee, which is considering the measure.<\/p>\n
That bill would raise the state\u2019s tax on jet fuel from 3.2 cents per gallon to 10 cents per gallon. The tax on aviation gas would rise from 4.7 cents per gallon to 10 cents per gallon. Also within HB 249 are increases to the state\u2019s gasoline taxes, but those are rising to a lesser degree than the taxes on aviation.<\/p>\n
Combined, the tax increases will raise about $49 million per year to help close the state\u2019s annual deficit, which is between $3.5 billion and $4 billion per year.<\/p>\n
The aviation tax increase is at least partially the work of the state\u2019s aviation advisory board, which favors a larger tax increase in place of a smaller increase and a rise in the landing fees charged at some state airports.<\/p>\n
Alaska Airlines and the state\u2019s larger airlines \u2014 Delta and UPS each sent letters of opposition \u2014 disagree with that strategy.<\/p>\n
\u201cBeyond the exceedingly high increase,\u201d Sprague told the committee, \u201cour calculations suggest Alaska Airlines alone would pay 30 percent.\u201d<\/p>\n
\u201cWhether you would take action on fuel tax or not \u2014 and again, our hope is that you won\u2019t \u2026 our view is that action is going to have to be taken across the various levers that are available to the Legislature,\u201d he said.<\/p>\n
Meeting with the Empire editorial board, Sprague said it\u2019s \u201chard for us to say no, don\u2019t do it\u201d even as it advocates a prompt solution to the state\u2019s budget problems.<\/p>\n
\u201cWe\u2019re looking at ways we can bring our costs down \u2026 so we can bring our fares down,\u201d Sprague said. \u201cA fuel tax that would be pretty targeted at aviation \u2026 it puts us in sort of an awkward position.\u201d<\/p>\n
Sprague said the company is \u201copen to looking at different solutions\u201d and is considering joining one or more of the business and nonprofit coalitions pushing the Legislature for action this year.<\/p>\n
Marilyn Romano, Alaska Airlines\u2019 regional vice president for the 49th state, said, \u201cWe feel like this may be the time that Alaska Airlines should step up as a leader in the state and encourage whatever (fix) that may be.\u201d<\/p>\n
The fly-in wasn\u2019t completely devoted to the gas tax issue. Speaking to the Empire, Sprague and others said the company is planning a series of changes in the coming years that will be visible to travelers.<\/p>\n
Last week, Alaska Airlines unveiled a new branding scheme and simplified logo that will be installed in Juneau\u2019s airport this year. Larger projects are also coming in the next few years. The airline operates 11 terminals at airports across the state \u2014 Barrow, Wrangell, Yakutat and Kodiak are examples \u2014 and it will be spending tens of millions to upgrade those terminals in the near term.<\/p>\n
In Anchorage, the airline expects to build a new maintenance hangar. The company is also phasing out its \u201ccombi\u201d aircraft \u2014 the half-freighter, half-passenger Boeing 737s used on rural routes in Alaska. Those will be replaced by full-freighter 737s new off the Boeing assembly line, Sprague said.<\/p>\n
And in response to the perennial question about whether Alaska will be bought out by a larger airline, Sprague had a simple answer: \u201cNo. Alaska likes its place as an independent, Seattle-based airline, and that\u2019s the way we want to stay.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
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