Jul 23, 2011

Stalemate in Congress could be a boon for travelers

DALLAS (AP) - deadlock in Congress could be a boon to consumers of the airline this weekend.Several federal air travel taxes were set to expire Friday night if the Congress does not pass a law to maintain the operation of the federal Aviation Administration .This means that travellers could avoid approximately $30 tax on a return of $300 ticket - airlines try to catch the bargain for themselves, increasing the rates to offset taxes with expiring.Rick Seaney, CEO of FareCompare.com travel Web site, said airline reservations systems have been alerted to stop the collection of the taxes at midnight. "" I shop at 12: 01 this evening and so should the rest of the public ", he said.But it was possible that airlines could raise rates to compensate for unpaid taxes. Leaving consumers pay the same amount of fly - just that more would go to the airlines and the Government less.Seaney and Jamie baker, an analyst with J.P. Morgan, said that US Airways has begun to raise rates Friday, apparently to compensate for the lower taxes. Baker said expiration of taxes "represents an exceptional potential of the industry" If airlines capture the part of the Government of the consumers ' money.A spokesman for US Airways Group Inc., John mcdonald, confirmed that the company had raised prices. He declined to discuss details of the increase, but passengers said are "likely not to go to see any change in rates of what they would normally see" before the expiration of the tax.Officials for United Continental Holdings Inc., Delta Air Lines Inc., AMR Corp s American Airlines and JetBlue Airways Corp., said Friday afternoon that they did not raise rates but refused to discuss pricing for the weekend plans. Southwest Airlines Co. did not immediately respond to a request for comments.Airlines should stop collecting tax on tickets by 7.5 per cent; a separate tax of $3.70 per segment, or a take-off and landing; a tax of $16.30 on international arrivals and departures; a 6.25% tax on shipments of cargo and other levies, according to a spokesman for the Department of the Treasury .Airlines would continue to collect the tax from safety of the passengers of $2.50 per segment and the "passenger facility fees" or PFC, up to $18 per round trip, to help pay for local airport projects.The FAA has led to a partial closure - air traffic controllers would remain at work because they are considered to be essential workers - after the failure of lawmakers dispute a supporter of the legislation to keep the Office running.Democrats oppose a provision by House Republicans would make it more difficult for workers of the airline and railway to join the Union. The air transport industry supports the Republican' proposal.___Joshua Freed reported by David koenig Minneapolis.Follow to http://www.twitter.com/airlinewriter

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