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The airlines got me again!
Old 07-23-2011, 11:41 AM   #1
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The airlines got me again!

I was about to book my October trip to Vegas , and read FAA was going into partial shutdown Friday at midnite which airlines would not be collecting federal taxes resulting in a 15% savings in airfare. Well guess what, the total cost of the airfare remained the same as they increased airfare to compensate for lack of taxes in the airfare and the airlines are pocketing the money instead of passing it on to consumers!
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Old 07-23-2011, 03:46 PM   #2
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I'm shocked. Shocked!
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Old 07-24-2011, 02:00 PM   #3
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airfare remained the same as they increased airfare to compensate for lack of taxes in the airfare
Not a lawyer, but often think like one so here it goes~ Does the fact that just about every large airline decided to jack their prices up all at once at exactly the same time smack of collusion? Isn't collusion usually illegal?
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Old 07-24-2011, 02:10 PM   #4
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Dear Taxpayers:

Thanks for the post-9/11 bailouts which kept us in business. I hope you've noticed how dedicated we have been to paying back your generosity and support in the years since. We owe it all to you.

Love,

The Airlines
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Old 07-24-2011, 02:31 PM   #5
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Originally Posted by mickeyd View Post
Not a lawyer, but often think like one so here it goes~ Does the fact that just about every large airline decided to jack their prices up all at once at exactly the same time smack of collusion? Isn't collusion usually illegal?
Nope, not unless the airlines are caught conspiring among themselves.

This is to be expected. Over the course of a few weeks competition will bring prices down to their historic levels (largely dependent on demand, with a base set by airline costs). In the short term, prices (fare plus tax) would be expected to go down with either a decrease in demand or an increase in supply--did the expiration of the taxes cause either of these things to occur? Nope.

BTW, is there any reporting on this that isn't based on HuffPo reporting as the original source?
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Old 07-24-2011, 02:37 PM   #6
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BTW, is there any reporting on this that isn't based on HuffPo reporting as the original source?
Google "airlines raise fares taxes expire". You'll see many of them from a variety of sources.

Anyone suspect that when the taxes are renewed, the fares will rise for it even though they didn't fall when the taxes expired?

The customer-hostile attitude of the airlines in the post-9/11 world is one of the reasons I avoid just about all discretionary air travel. I used to like flying. Now I hate it with a passion.
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Old 07-24-2011, 02:46 PM   #7
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Anyone suspect that when the taxes are renewed, the fares will rise for it even though they didn't fall when the taxes expired?
I don't suspect it, I assume it (or presume it.).
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Old 07-24-2011, 06:44 PM   #8
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I had a similar experience with my employer. This year there is a lower FICA tax being withheld from a paycheck so he phased in a new health plan where we now have to pay something each week. The reduction in FICA tax masked the increase in our health care deduction as many people look at their net pay.
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Old 07-24-2011, 06:59 PM   #9
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The customer-hostile attitude of the airlines in the post-9/11 world is one of the reasons I avoid just about all discretionary air travel. I used to like flying. Now I hate it with a passion.
+1. I've voted with my feet (or tires, really), the only way I know of to make a difference. Only flown once since 2002.
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Old 07-24-2011, 08:28 PM   #10
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Quote:
Originally Posted by ziggy29
Google "airlines raise fares taxes expire". You'll see many of them from a variety of sources.

Anyone suspect that when the taxes are renewed, the fares will rise for it even though they didn't fall when the taxes expired?

The customer-hostile attitude of the airlines in the post-9/11 world is one of the reasons I avoid just about all discretionary air travel. I used to like flying. Now I hate it with a passion.
I would love to avoid flying, but driving to Nevada from Missouri to get my sports betting fix in is too far. What made me mad was I was gullible to believe the news release that fares would drop the 15%. I checked air fare that day including taxes Friday afternoon, and Saturday morning, I got up ready to pocket the difference and found out I wasn't getting the tax break. If I had been cynical from the get go, I wouldn't have been so mad. I should have known better.
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Old 07-25-2011, 10:00 AM   #11
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Originally Posted by Mulligan View Post
I would love to avoid flying, but driving to Nevada from Missouri to get my sports betting fix in is too far. What made me mad was I was gullible to believe the news release that fares would drop the 15%. I checked air fare that day including taxes Friday afternoon, and Saturday morning, I got up ready to pocket the difference and found out I wasn't getting the tax break. If I had been cynical from the get go, I wouldn't have been so mad. I should have known better.

The news this morning on the radio listed some of the airlines who did not lower their fares and some who did... I am sure they will all adjust....
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