It probably depends on which taxes we're talking about and whether consumers are savvy enough to insist that the taxes be refunded. Refer to the link in my signature for U.S. government-imposed taxes, fees, etc.
There is little doubt that the YQ -> YR switch was in response to strongly worded and threatening guidance from the U.S. Department of Transportation in February 2012, especially in light of the fact that AA now describes YR as the "AA YR surcharge" with no reference to fuel. Note also that AA has dropped the word "fuel" when describing the surcharge AA collects when its customers redeem awards on BA and IB. http://www.aa.com/i18n/utility/jba-faqs.jsp
Refer to "Notice providing additional guidance on airfare/air tour price advertisements," Office of the Secretary, Department of Transportation, 77 Fed. Reg. 11618-20 (February 21, 2012), http://www.gpo.gov/fdsys/pkg/FR-2012.../2012-4546.htm
Quote:
This notice provides additional guidance to airlines and ticket agents that market prices for air transportation, air tours, or tour components in connection with air transportation regarding the full fare advertising rule. It describes several airline and ticket agent practices that the Office of Aviation Enforcement and Proceedings (Enforcement Office) considers to violate section 399.84 and/or to be unfair and deceptive and/or an unfair method of competition in violation of 49 U.S.C. 41712.
* * * *
If a vendor chooses to make available information regarding the amount of taxes and/or fees that are included in the full fare, the disclosure must accurately distinguish between taxes and government fees on the one hand and carrier-imposed fees on the other. In addition, with respect to information about carrier-imposed fees included in the full fare, such disclosure must accurately represent the actual cost of the item for which the charge is assessed and must not otherwise be deceptive.
* * * *
The Department's new consumer rule, "Enhancing Airline Passenger Protections,'' 76 FR 23110 (Apr. 25, 2011), requires, among other things, that the first price quote presented must be the full price, including all taxes, fees and all carrier surcharges. ... In response to concerns expressed by carriers, the Department made clear in the preamble to the rule that advertisers are free to advise the public in price solicitations about government taxes and fees as well as carrier- or agent-imposed fees that are included within the single total price, so long as that notice is not deceptive. ... In particular, the Department noted that any such charges must be displayed on a per-passenger basis, accurately reflect the actual costs of the service covered, and not otherwise be deceptive. (14 CFR 399.84, 76 FR 23110, 23143). When a cost component is described as a fuel surcharge, for example, that amount must actually reflect a reasonable estimate of the per-passenger fuel costs incurred by the carrier above some baseline calculated based on such factors as the length of the trip, varying costs of fuel, and number of flight segments involved.
* * * *
Moreover, ... we wish to remind carriers that amounts listed as charges for particular services must accurately reflect the actual costs of the service covered. Therefore, the "fuel surcharge'' of $476 in the above example, which is associated with a transatlantic trip originating in New York City, must be an accurate reflection of the fuel cost over some reasonable baseline for an individual passenger for that trip.... In a similar vein, we have observed that carriers may add "fuel surcharges'' or other fees to their frequent flyer ticket offerings, some in an amount of several hundred dollars. Any such charges assessed also must be fairly disclosed and an accurate reflection of the actual costs as described above.
* * * *
The office will provide those subject to the full fare advertising rule and 49 U.S.C. 41712 60 days subsequent to the date of this notice to ensure they are in compliance before instituting enforcement action related to the issues covered in this notice.
I predict that AA will keep YR plus add a new YQ just for fuel as soon as AA comes up with a way to connect the amount of YQ to fuel costs as required by DoT. I'm not nearly as optimistic about this development as others may be.
I predict that AA will keep YR plus add a new YQ just for fuel as soon as AA comes up with a way to connect the amount of YQ to fuel costs as required by DoT. I'm not nearly as optimistic about this development as others may be.
I wish them luck. Presumably it would have to be proportional to the length of the flight, so probably a mileage-based calculation. And it would also have to be tied to the price of the actual jet fuel, but is it based on the price at the time of booking or the time of flying? Then if you re-issue a ticket, is the YQ re-calculated? I'm not saying these issues are insurmountable, but they certainly add cost and complexity.
