Jul 23, 2011
Some travellers may not see the expired tax savings
DALLAS (AP) - some clients of the airline will see savings this weekend even if several federal taxes on tickets have expired.US Airways and American Airlines has raised prices to offset the tax savings.This means instead of passing along the expired tax savings, the carriers are pocketing money while the customers pay the same amount as before.But other airlines left prices unchanged on Saturday. Consumers could save money by shopping.The taxes expired may total $ 25 or a typical round-trip $ 300 ticket. On a journey of September between Dallas and San Francisco, the flight cheaper American on Travelocity.com was more than United States bid, Continental, Delta and Virgin America, which has not raised rates of $24.The taxes expired after midnight Friday when Congress did not adopt legislation to keep federal Aviation Administration running.Giving airlines a choice: they could not do anything - and pass the savings to customers - or they part of the money could enter themselves. "" We have adjusted prices so the net price of a ticket is the same, as it was before... expiration of federal excise taxes, "said American spokesman Tim smith. U.S. Airways spokesman John mcdonald said to roughly the same thing - passengers will pay the same amount for a ticket, as they did before the expiration of the tax.Smith refused to say if the increase would be cancelled if Congress revives travel fees.Tom Parsons, who manages the website travel Bestfares.com , said consumers should get a break. "Why airlines should it? ", he said. "They have already hit us with enough fresh." Now they keep the rights of the Government too. "The Department of transport , said that he will lose 200 million dollars per week. J.P. Morgan Jamie baker analyst said airlines could take in an extra 25 million dollars a day by increasing prices during the tax holiday.Parsons said finally competitive pressure will force airlines to match - either they spend tax savings to passengers, or they'll all raise rates and keep the money themselves.Spirit Airlines, said Saturday that it is from customers all the savings, which could be considered more than $50 per round trip.Southwest Airlines and its subsidiary AirTran raised prices by $8 per round trip, said spokesman Marilee mcinnis.Southwest support may be crucial if airlines decide to keep the taxpayers money. Southwest carries more passengers U.S. than anyone, and it effectively sets the rates on many routes. Southwest torpedoed attempts by other airlines to raise prices in the past two weeks. CEO Gary Kelly has publicly feared that airlines may scare passengers away by raising too high prices.Which may be less than a fear of this period, however, given that consumers would not be shelling out more money for the tickets - they just would not get an unexpected discounts, courtesy of Congress.Several federal taxes travel expired when Congress adjourned for the weekend without passing the laws of the FAA. Legislators failed to break a deadlock on a proposed Republican to make it more difficult for the workers of the airline and railway to join the Union.The air traffic controllers remained on the job, but thousands of other employees of the FAA were likely to be delivered.Airlines ceased to collect a tax on tickets by 7.5%, a separate tax of $3.70 per takeoff and landing and other fees. Those in addition to the approximately $32 on a route round trip with a base price of 240 dollars and one stop in each direction.Other Government costs for safety and local projects of the airport are always seen. They stimulate the final cost of the ticket of base-rate $240 to $300.Passengers who have purchased tickets before this weekend but travel upon closure of the FAA could be entitled to a refund of the taxes they have paid, said the spokesman for the Department of the Treasury Sandra salstrom. She said that it is not known if the Government can keep the fees for the trip at a time where he has no authority to collect the money.___AP Airlines writer Joshua freed in Minneapolis contributed to this report.Follow David koenig to http://www.twitter.com/airlinewriter
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