FAA Shutdown
07-22-2011, 05:51 PM
#1
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FAA Shutdown
From Seattle Times:
The federal government has left the FAA in limbo — and that will save buyers of airline tickets some money since they won't have to pay federal taxes on tickets.
Starting Friday at midnight, airlines will not have the authority to collect federal excise ticket taxes since Congress adjourned Friday without approving an FAA funding measure.
Seattle-based Alaska Airlines estimates travelers could save about 14 percent on some airline tickets. And, said Alaska spokeswoman Bobbie Egan, the federal taxes will not apply retroactively. However, whenever Congress passes a stopgap funding measure for the FAA, the taxes will resume.
Taxes that won't be collected by Alaska (and other airlines) include:
• The 7.5 percent tax generally applicable to domestic transportation.
• A $16.30 international arrival/departure tax each way (for flights to Canada, Mexico or other foreign destinations).
• The $3.70 domestic segment tax.
• The $8.20 departure tax for flights between Alaska/Hawaii and the mainland U.S.
Some other taxes and fees, including the Sept. 11 security fee, still will be collected.
Thousands of FAA workers face furloughs because of the funding stalemate, but the U.S. air-traffic control system will not be affected.
The federal government has left the FAA in limbo — and that will save buyers of airline tickets some money since they won't have to pay federal taxes on tickets.
Starting Friday at midnight, airlines will not have the authority to collect federal excise ticket taxes since Congress adjourned Friday without approving an FAA funding measure.
Seattle-based Alaska Airlines estimates travelers could save about 14 percent on some airline tickets. And, said Alaska spokeswoman Bobbie Egan, the federal taxes will not apply retroactively. However, whenever Congress passes a stopgap funding measure for the FAA, the taxes will resume.
Taxes that won't be collected by Alaska (and other airlines) include:
• The 7.5 percent tax generally applicable to domestic transportation.
• A $16.30 international arrival/departure tax each way (for flights to Canada, Mexico or other foreign destinations).
• The $3.70 domestic segment tax.
• The $8.20 departure tax for flights between Alaska/Hawaii and the mainland U.S.
Some other taxes and fees, including the Sept. 11 security fee, still will be collected.
Thousands of FAA workers face furloughs because of the funding stalemate, but the U.S. air-traffic control system will not be affected.
07-22-2011, 08:34 PM
#3
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From Seattle Times:
The federal government has left the FAA in limbo — and that will save buyers of airline tickets some money since they won't have to pay federal taxes on tickets.
Starting Friday at midnight, airlines will not have the authority to collect federal excise ticket taxes since Congress adjourned Friday without approving an FAA funding measure.
Seattle-based Alaska Airlines estimates travelers could save about 14 percent on some airline tickets. And, said Alaska spokeswoman Bobbie Egan, the federal taxes will not apply retroactively. However, whenever Congress passes a stopgap funding measure for the FAA, the taxes will resume.
Taxes that won't be collected by Alaska (and other airlines) include:
• The 7.5 percent tax generally applicable to domestic transportation.
• A $16.30 international arrival/departure tax each way (for flights to Canada, Mexico or other foreign destinations).
• The $3.70 domestic segment tax.
• The $8.20 departure tax for flights between Alaska/Hawaii and the mainland U.S.
Some other taxes and fees, including the Sept. 11 security fee, still will be collected.
Thousands of FAA workers face furloughs because of the funding stalemate, but the U.S. air-traffic control system will not be affected.
The federal government has left the FAA in limbo — and that will save buyers of airline tickets some money since they won't have to pay federal taxes on tickets.
Starting Friday at midnight, airlines will not have the authority to collect federal excise ticket taxes since Congress adjourned Friday without approving an FAA funding measure.
Seattle-based Alaska Airlines estimates travelers could save about 14 percent on some airline tickets. And, said Alaska spokeswoman Bobbie Egan, the federal taxes will not apply retroactively. However, whenever Congress passes a stopgap funding measure for the FAA, the taxes will resume.
Taxes that won't be collected by Alaska (and other airlines) include:
• The 7.5 percent tax generally applicable to domestic transportation.
• A $16.30 international arrival/departure tax each way (for flights to Canada, Mexico or other foreign destinations).
• The $3.70 domestic segment tax.
• The $8.20 departure tax for flights between Alaska/Hawaii and the mainland U.S.
Some other taxes and fees, including the Sept. 11 security fee, still will be collected.
Thousands of FAA workers face furloughs because of the funding stalemate, but the U.S. air-traffic control system will not be affected.
Win-win.
07-23-2011, 04:02 AM
#5
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Posts: 943
Reminds me of that Beach Boys song...... Wouldn't it be nice. 
07-23-2011, 04:41 AM
#6
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07-23-2011, 05:01 AM
#7
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Joined APC: Jun 2007
Posts: 79
FAA funding
Its sad to see how politicians are slowly destroying the country.
FAA funding ends; almost 4,000 at FAA may be furloughed - CNN.com
FAA funding ends; almost 4,000 at FAA may be furloughed - CNN.com
07-23-2011, 05:23 AM
#8
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Posts: 2,919
Its sad to see how politicians are slowly destroying the country.
FAA funding ends; almost 4,000 at FAA may be furloughed - CNN.com
FAA funding ends; almost 4,000 at FAA may be furloughed - CNN.com
Sounds like another bloated government agency if you ask me.
Might be missing something here, so anyone who has some information otherwise feel free to chime in, but what would the FAA need scientists and community planners for???
07-23-2011, 05:34 AM
#9
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Position: 737 CAPT
Posts: 1,905
I had read the ATA's and the DOT/FAA's statement both saying that without a stop-gap FAA bill by midnight that the airlines would no longer be able to collect taxes on passenger tickets. So this morning I did a little checking to see if the airlines indeed had stopped collecting taxes.
A couple of months ago, I bought a ticket round trip to someplace I needed to be for $300. That ticket had about $45 in taxes on it.
Today, I priced a round trip ticket leaving tomorrow. It came out to about $900. Of that, $25 was listed as the total taxes and fees. I guess they aren't "collecting" those taxes after all (see below).
Funny how quickly the airlines are able to "switch off" the tax collecting portion of the ticket when it suits them, but protest being required to show all the fees that a passenger may be charged during their journey.
Actually, what the airlines most likely did is shift the "tax" portion into the ticket price to add to their bottom line while still showing the TAX amount to be less. The airlines can then say look we aren't collecting most taxes so it's a bargain to buy a ticket for now. In reality, the ticket price is probably the same as the airlines moved the money from Uncle Sam's column to their own. Of course I have no proof so can't say for sure. I mean I wouldn't want to accuse airline management of doing something unethical or anything.
A couple of months ago, I bought a ticket round trip to someplace I needed to be for $300. That ticket had about $45 in taxes on it.
Today, I priced a round trip ticket leaving tomorrow. It came out to about $900. Of that, $25 was listed as the total taxes and fees. I guess they aren't "collecting" those taxes after all (see below).
Funny how quickly the airlines are able to "switch off" the tax collecting portion of the ticket when it suits them, but protest being required to show all the fees that a passenger may be charged during their journey.
Actually, what the airlines most likely did is shift the "tax" portion into the ticket price to add to their bottom line while still showing the TAX amount to be less. The airlines can then say look we aren't collecting most taxes so it's a bargain to buy a ticket for now. In reality, the ticket price is probably the same as the airlines moved the money from Uncle Sam's column to their own. Of course I have no proof so can't say for sure. I mean I wouldn't want to accuse airline management of doing something unethical or anything.
07-23-2011, 05:42 AM
#10
Gets Weekends Off
Joined APC: Mar 2008
Posts: 2,919
I had read the ATA's and the DOT/FAA's statement both saying that without a stop-gap FAA bill by midnight that the airlines would no longer be able to collect taxes on passenger tickets. So this morning I did a little checking to see if the airlines indeed had stopped collecting taxes.
A couple of months ago, I bought a ticket round trip to someplace I needed to be for $300. That ticket had about $45 in taxes on it.
Today, I priced a round trip ticket leaving tomorrow. It came out to about $900. Of that, $25 was listed as the total taxes and fees. I guess they aren't "collecting" those taxes after all (see below).
Funny how quickly the airlines are able to "switch off" the tax collecting portion of the ticket when it suits them, but protest being required to show all the fees that a passenger may be charged during their journey.
Actually, what the airlines most likely did is shift the "tax" portion into the ticket price to add to their bottom line while still showing the TAX amount to be less. The airlines can then say look we aren't collecting most taxes so it's a bargain to buy a ticket for now. In reality, the ticket price is probably the same as the airlines moved the money from Uncle Sam's column to their own. Of course I have no proof so can't say for sure. I mean I wouldn't want to accuse airline management of doing something unethical or anything.
A couple of months ago, I bought a ticket round trip to someplace I needed to be for $300. That ticket had about $45 in taxes on it.
Today, I priced a round trip ticket leaving tomorrow. It came out to about $900. Of that, $25 was listed as the total taxes and fees. I guess they aren't "collecting" those taxes after all (see below).
Funny how quickly the airlines are able to "switch off" the tax collecting portion of the ticket when it suits them, but protest being required to show all the fees that a passenger may be charged during their journey.
Actually, what the airlines most likely did is shift the "tax" portion into the ticket price to add to their bottom line while still showing the TAX amount to be less. The airlines can then say look we aren't collecting most taxes so it's a bargain to buy a ticket for now. In reality, the ticket price is probably the same as the airlines moved the money from Uncle Sam's column to their own. Of course I have no proof so can't say for sure. I mean I wouldn't want to accuse airline management of doing something unethical or anything.
http://online.wsj.com/article/SB1000...177336804.html
Airlines will no longer have to pay a 7.5% federal excise tax on each ticket, or a $3.70 tax applied to each flight segment. Arizona-based US Airways Group Inc. began adjusting fares Friday so that consumers would see no difference in ticket prices, even without taxes. Analysts expected other airlines to follow suit.
"What we're trying to do is to keep our fares competitive with the industry and we're being transparent now with consumers about pricing," said US Airways spokesman John McDonald.
I think base fare needs to be adjusted to cover the loss of fees and taxes. I think if the airlines decide to pocket the money, without changing base fare amounts, and then never sending a check to Uncle Sam, then they will probably find themselves in court.
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