House proposes a big green subsidy for airlines
The House of Representatives is still haggling over what to include in its version of an infrastructure bill, and some interest groups will undoubtedly be disappointed.
Airlines, however, won’t be among them if a big federal credit for green jet fuel survives the negotiating process. As View from the Wings Gary Leff writes:
The federal government will be subsidizing aviation biofuel mixtures at at least $1.25 per gallon, and going up from their depending on the emission reductions those fuel achieve. And here you thought you were done paying the airlines after $79 billion in direct pandemic aid.
Once the subsidy taps are opened, they are next to impossible to close – all because the benefits are concentrated, and the costs are spread widely.
With airlines, we can add huge bailouts to the subsidies. Just remember that the next time you’re stuck in a middle seat with no leg room and offered a bag of dry pretzels for your trouble.