Monday, November 10, 2008
A Reader Shares Her Airline Tax Story
Reader Lisa M. emailed to tell of her ordeal with the FAA / American Airlines. I'm not sure how much good it will do to publicize this, but I was stunned by the story (which seems real, e.g. the electronic receipt looked authentic) and so I am passing it along. The following is her letter to an American Airlines representative.
==========
Good Morning Mr. Smith,
I have left you a voice mail earlier this week during your absence but I thought it may be beneficial to send you a copy of the complaint I sent to the FAA regarding over charge of tax by American Airlines and possible gas gouging.
---------------------------------------------------------------------------------------
I have tried to rectify a TAX issue with American Airlines. My base fare is
$701.80 with Taxes of $398.60 for a Total of $1100.40. Every other flight that date on AA to the same routes had taxes of $97.50 or less. As of yesterday, the tax was $84.50.
When I spoke with the airlines, I was told my tax is $429. Yet on my ticket it clearly states $398.60.
I asked two different people on two different dates for an explanation of why I was charged an additional tax of $301.10. The first person told me it was a luxury tax and the next told me it was a fuel surcharge tax.
I have the following questions:
Why was only this flight on that day charged $301.10 additional fuel tax charge
Moreover, no other flights that day were charged this tax?
If it is a fuel charge tax that has since been reduced due to falling fuel
prices, why am I not being refunded the tax as I have not flown yet
nor has the airlines incurred the fuel charges.
This amounts to gas gouging.
The same flight today cost base $867 tax $83.90 Total $950.90.
I was also told since my base fare is less then the current base fare
I would have to pay a penalty to get a less expensive fare.
I am asking for the additional tax of $301.10 be returned to me.
Record Locator/AA Confirmation:ELV***
Itinerary
Date: 20Dec - Saturday
Flight: AMERICAN AIRLINES
OPERATED BY AMERICAN EAGLE 4474 Embraer RJ145(ER4) Booking Code: S
Departure: JAX Jacksonville 12:50 PM 2HR 50MIN
Arrival: ORD Chicago 02:40 PM
M., LISA
SEAT 8C Economy FF# :AA 4H4****
Date: 20Dec - Saturday
Flight: AMERICAN AIRLINES 92 Boeing 767-300 Passenger(763) Booking Code: S
Departure: ORD Chicago 07:20 PM 7HR 10MIN
Arrival: DUB Dublin 08:30 AM
M., LISA
SEAT 25J Economy FF# :AA 4H4****
Date: 06Jan - Tuesday
Flight: AMERICAN AIRLINES 93 Boeing 767-300 Passenger(763) Booking Code: V
Departure: DUB Dublin 10:30 AM 8HR 25MIN
Arrival: ORD Chicago 12:55 PM
M., LISA
SEAT 24J Economy FF# :AA 4H4****
Date: 06Jan - Tuesday
Flight: AMERICAN AIRLINES
OPERATED BY AMERICAN EAGLE 4503 Embraer RJ145(ER4) Booking Code: V
Departure: ORD Chicago 06:05 PM 2HR 30MIN
Arrival: JAX Jacksonville 09:35 PM
M., LISA
SEAT 13A Economy FF# :AA 4H4****
Receipt
PASSENGER TICKET NUMBER FARE TAXES TICKET TOTAL
M.,LISA 0012116****** 701.80 USD 398.60 1100.40
Payment Type:
AMERICAN AIRLINES *********7809
Total
1100.40
Kind Regards,
Lisa M.
==========
Good Morning Mr. Smith,
I have left you a voice mail earlier this week during your absence but I thought it may be beneficial to send you a copy of the complaint I sent to the FAA regarding over charge of tax by American Airlines and possible gas gouging.
---------------------------------------------------------------------------------------
I have tried to rectify a TAX issue with American Airlines. My base fare is
$701.80 with Taxes of $398.60 for a Total of $1100.40. Every other flight that date on AA to the same routes had taxes of $97.50 or less. As of yesterday, the tax was $84.50.
When I spoke with the airlines, I was told my tax is $429. Yet on my ticket it clearly states $398.60.
I asked two different people on two different dates for an explanation of why I was charged an additional tax of $301.10. The first person told me it was a luxury tax and the next told me it was a fuel surcharge tax.
I have the following questions:
Why was only this flight on that day charged $301.10 additional fuel tax charge
Moreover, no other flights that day were charged this tax?
If it is a fuel charge tax that has since been reduced due to falling fuel
prices, why am I not being refunded the tax as I have not flown yet
nor has the airlines incurred the fuel charges.
This amounts to gas gouging.
The same flight today cost base $867 tax $83.90 Total $950.90.
I was also told since my base fare is less then the current base fare
I would have to pay a penalty to get a less expensive fare.
I am asking for the additional tax of $301.10 be returned to me.
Record Locator/AA Confirmation:ELV***
Itinerary
Date: 20Dec - Saturday
Flight: AMERICAN AIRLINES
OPERATED BY AMERICAN EAGLE 4474 Embraer RJ145(ER4) Booking Code: S
Departure: JAX Jacksonville 12:50 PM 2HR 50MIN
Arrival: ORD Chicago 02:40 PM
M., LISA
SEAT 8C Economy FF# :AA 4H4****
Date: 20Dec - Saturday
Flight: AMERICAN AIRLINES 92 Boeing 767-300 Passenger(763) Booking Code: S
Departure: ORD Chicago 07:20 PM 7HR 10MIN
Arrival: DUB Dublin 08:30 AM
M., LISA
SEAT 25J Economy FF# :AA 4H4****
Date: 06Jan - Tuesday
Flight: AMERICAN AIRLINES 93 Boeing 767-300 Passenger(763) Booking Code: V
Departure: DUB Dublin 10:30 AM 8HR 25MIN
Arrival: ORD Chicago 12:55 PM
M., LISA
SEAT 24J Economy FF# :AA 4H4****
Date: 06Jan - Tuesday
Flight: AMERICAN AIRLINES
OPERATED BY AMERICAN EAGLE 4503 Embraer RJ145(ER4) Booking Code: V
Departure: ORD Chicago 06:05 PM 2HR 30MIN
Arrival: JAX Jacksonville 09:35 PM
M., LISA
SEAT 13A Economy FF# :AA 4H4****
Receipt
PASSENGER TICKET NUMBER FARE TAXES TICKET TOTAL
M.,LISA 0012116****** 701.80 USD 398.60 1100.40
Payment Type:
AMERICAN AIRLINES *********7809
Total
1100.40
Kind Regards,
Lisa M.
# posted by Bob Murphy @ 4:57 PM 
Comments:
When I book an airline, hotel etc., I always look at the final price versus the components.
Bob, as you know factors of production are determined by the consumer price, and not the other way around.
With clients I always recommend they create such price charges as gas surcharges, and the like, to establish a track record of doing such, so that in the case price controls are ever instituted, long established "fuel surcharges" might be allowed to be passed through when an increase in the ticket price would not. Bureaucrats live for this type minutia hair splitting. I suspect that if you dig deep, calling an airline price hike a "fuel surcharge" probably means that the airlines aren't paying some type of ticket tax on the increase, or some other tax.
Of course, you can't be idiotic about it and charge different "fuel charges" for the same destination.
To all consumers, I say don't sweat just what they call it, just evaluate the final price.
In the Obama Era, with more and more regs, there are bound to be more and more oddball justifications for what are basically price hikes.
Post a Comment
Bob, as you know factors of production are determined by the consumer price, and not the other way around.
With clients I always recommend they create such price charges as gas surcharges, and the like, to establish a track record of doing such, so that in the case price controls are ever instituted, long established "fuel surcharges" might be allowed to be passed through when an increase in the ticket price would not. Bureaucrats live for this type minutia hair splitting. I suspect that if you dig deep, calling an airline price hike a "fuel surcharge" probably means that the airlines aren't paying some type of ticket tax on the increase, or some other tax.
Of course, you can't be idiotic about it and charge different "fuel charges" for the same destination.
To all consumers, I say don't sweat just what they call it, just evaluate the final price.
In the Obama Era, with more and more regs, there are bound to be more and more oddball justifications for what are basically price hikes.
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