US airline ticket taxes suspended

explain? is it a promo??

Congress Apparently Chooses To Not Fund FAA

Congress Apparently Chooses To Not Fund FAA Email this article |Print this article

By Glenn Perw, Contributing Editor, Video Editor

That's it. Congress did not argue right up until a midnight Friday deadline, they did not agree on and pass a long- or short-term measure to provide funding for the FAA; instead, they went home. Now, it seems thousands of people who work for or are contracted by the FAA are about to be asked to do the same -- but without pay. If nothing changes, Saturday we'll begin to draw the lines between critical and non-critical FAA employees. Critical workers (i.e. air traffic controllers) will remain on the job, funded by an aviation trust fund. Workers deemed non-critical will be identified by their layoff notices. The latest funding measure was the 20th of its kind enacted in lieu of a long-term budget, because Congress has refused to agree on one of those, either. </p>

FAA officials are expected to immediately halt airport construction projects and label safety planners, NextGen researchers, computer specialists and engineers as unemployable. Airlines will no longer collect federal ticket taxes, depriving the Airport and Airway Trust Fund of about $200 million each week. Furloughs could hit 35 states and shut down thousands of construction jobs. According to Transportation Secretary Ray LaHood, "states and airports won't be able to work on their construction projects, and too many people will have to go without a paycheck." While the House and Senate had previously approved short-term funding, new language introduced by the House would have eliminated subsidies for certain airports served by Essential Air Services funding and made it more difficult for airline workers to unionize. The Senate, which had agreed to other cuts, did not approve of those changes.

i just looked up some trips from baltimore to pop. the taxes were 115 instead of the usual 148. no promo....

yes looks like taxes went down a little

but continental must have lost their mind
my ticket is now 1774$ instead of 771
Manu

bri777 said:

yes looks like taxes went down a little

but continental must have lost their mind
my ticket is now 1774$ instead of 771
Manu

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extra weight ? lol

Some of the airlines have found a way to make a new profit

The news here in the states is all about the airlines and the federal taxes that expired. MOST of the major airlines have simply kept the ticket prices the same as they were when the taxes were collected and are pocketing the extra cash as profits. Senators and the Transportation Secretary have sent letters to the airlines asking them to lower the prices back to where they were when the tax was in effect, and then not charge the taxes to comsumers, and the airlines have basically laughed at them, as the governemnt has no authority to force them to change the prices back. So if you were searching flights on the day the taxes expired you would have seen a ticket go down by about $30.00 at midnight, then go right back up to previous price a few minutes after midnight ( when the airlines raised the prices the same amount as the taxes that expired ) So far consumer outrage hasn't been enough for them to lower their prices yet, and the airlines somehow feel " entitled" to that extra money.

Must be that BBQ pit that Im bringing lol
p.s. chuck t
I weigh 135 lbs wet
Manu

edm7583 said:

The main culprit for this is American Airlines, which is desperate for money. This month, all the airlines released their 2nd quarter earnings. Every major airline in the U.S. was profitable. United/Continental, Delta, JetBlue, Southwest, and US Airways. Only one glaring exception. AA lost a jaw dropping 286 million dollars in the last 3 months.

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This is why. They have been spending money like crazy replacing their fleet with more fuel efficient aircraft. They're targeting a 35% fuel consumption reductions per seat with the A-320neo and 737-200/800/900 and they're replacing 925 aircraft over the next 12 years.


Hold: AMR

AMR Corporation Announces Largest Aircraft Order In History With Boeing And Airbus

edm7583 said:

The main culprit for this is American Airlines, which is desperate for money. This month, all the airlines released their 2nd quarter earnings. Every major airline in the U.S. was profitable. United/Continental, Delta, JetBlue, Southwest, and US Airways. Only one glaring exception. AA lost a jaw dropping 286 million dollars in the last 3 months.

Click to expand...

Im not so sure. JFK to STI was $300 even for next month. I think the other airlines were expecting the FAA to be financed so they collected the taxes en lieu so when there wouldnt be any discrepancies. But 2 weeks later and no budget and summer recess means the taxes will be off the books until probably October.

Here's how they are reporting it in the UK -
BBC News - FAA shutdown could cost US $1bn (?610m) in lost taxes
Tropical Regards
Ian & Ellie