Taxes not being collected by UAL.com due to FAA strike
Jul 23, 2011, 12:06 am
#1
Original Poster
Join Date: Jan 2005
Location: DEN
Programs: UA Gold-MM, AA Gold-MM, F9-Silver, Hyatt Something, Marriott Gold, IHG Plat, Hilton Diamond
Posts: 6,397
Taxes not being collected by UAL.com due to FAA strike
Not sure where this belongs, but I believe that it is of interest to those contemplating MR's at the moment.
Per the information presented on Gary's blog, it seems that UA is not collecting the 7.5% tax right now.
My verification was as follows:
1. Search a route on ITA. Note the fare for UA and DL.
2. Search the same route on UA.com and DL.com
3. UA.com price matches ITA.
4. DL.com price is exactly 7.5% higher (over base) than ITA
5. This indicates to me that ITA is showing prices without the tax.
6. UAL.com is selling tickets without the tax
7. DL.com is selling tickets with the tax
Please correct my analysis if necessary. 7.5% reduction does not a mileage run make, but it could tip the scales on a marginal MR.
<sorry for bad title. Should have said FAA reauthorization issue. Greece we ain't! (mods alerted to request change)>
Per the information presented on Gary's blog, it seems that UA is not collecting the 7.5% tax right now.
My verification was as follows:
1. Search a route on ITA. Note the fare for UA and DL.
2. Search the same route on UA.com and DL.com
3. UA.com price matches ITA.
4. DL.com price is exactly 7.5% higher (over base) than ITA
5. This indicates to me that ITA is showing prices without the tax.
6. UAL.com is selling tickets without the tax
7. DL.com is selling tickets with the tax
Please correct my analysis if necessary. 7.5% reduction does not a mileage run make, but it could tip the scales on a marginal MR.
<sorry for bad title. Should have said FAA reauthorization issue. Greece we ain't! (mods alerted to request change)>
Jul 23, 2011, 12:27 am
#2
Join Date: May 2011
Location: SFO
Programs: AA Plat, WN CP, Elevate Silver, AS MVP, Hilton Diamond, Hertz PC, Sixt Platinum, National Exec
Posts: 253
I can confirm that an earlier ticket I wanted to purchase has decreased about $20 on UA from a couple hours ago. For some reason, when I try to apply an e-cert the price increases. I guess I need to call websupport to get the ticket issued.
Jul 23, 2011, 12:32 am
#3
FlyerTalk Evangelist
Join Date: Apr 2009
Location: Bye Delta
Programs: AA EXP, HH Diamond, IHG Plat, Hyatt Plat, Marriott Plat, Nat'l Exec Elite, Avis Presidents Club
Posts: 16,297
Taxes are not being collected by online booking sites such as Travelocity. DL.com is still showing the taxes, but Travelocity allows you to book DL flights without them.
Jul 23, 2011, 12:47 am
#5
Join Date: Sep 2007
Location: Purgatory
Programs: Too many to list. Status is a half dozen.
Posts: 9,236
Lame. Seems the fares went up on some US routes I was watching. Can't entirely blame an airline for seeing an easy revenue grab I suppose. Fiduciary duty to shareholders, methinks.
Jul 23, 2011, 2:25 am
#7
Join Date: Apr 2003
Location: IAD
Programs: Free Agent
Posts: 1,939
I purchased a ticket to ANC on UA two days ago, and it's now pricing at $50 lower in the same fare class.
Just saved $115 on a trip to PVG in March!
Just saved $115 on a trip to PVG in March!
Last edited by Condition One; Jul 23, 2011 at 2:51 am
Jul 23, 2011, 2:47 am
#8
Join Date: Oct 2008
Location: SFO, SJC
Programs: UA, AA, AS, Marriott Platinum Elite, Hilton Diamond
Posts: 707
The situation isn't that simple though. Federal taxes may still be owed at a later date if your date of flight comes after Congress reaches a compromise and reopens the FAA. The IRS will need to clarify the situation soon.
I've written a little more about this here.
Here's a clarification from Virgin America about which taxes are being collected and which aren't:
Which taxes have expired – and which ones still exist?
The federal taxes that will temporarily expire at 12:01am Pacific time on July 23, 2011 are:
- The 7.5% tax that applies to domestic transportation (as well the 7.5% tax on the sale of frequent flyer miles)
- The $3.70 domestic segment tax
- The $16.30 international arrival/departure tax
The federal taxes still in place:
- Commercial Fuel Tax
- PFCs (tax code XF)
- September 11 Passenger Security Fee (tax code AY)
- APHIS passenger inspection fee (tax code XA)
- APHIS aircraft inspection fee (tax code XA)
- Customs passenger inspection fee (tax code YC)
- Immigration passenger inspection fee (tax code XY)
What's interesting is they say the 7.5% tax on the sale of miles is also eliminated right now. If there are some good bonus offers on buying miles right now, it might be a good time to jump in?
I've written a little more about this here.
Here's a clarification from Virgin America about which taxes are being collected and which aren't:
Which taxes have expired – and which ones still exist?
The federal taxes that will temporarily expire at 12:01am Pacific time on July 23, 2011 are:
- The 7.5% tax that applies to domestic transportation (as well the 7.5% tax on the sale of frequent flyer miles)
- The $3.70 domestic segment tax
- The $16.30 international arrival/departure tax
The federal taxes still in place:
- Commercial Fuel Tax
- PFCs (tax code XF)
- September 11 Passenger Security Fee (tax code AY)
- APHIS passenger inspection fee (tax code XA)
- APHIS aircraft inspection fee (tax code XA)
- Customs passenger inspection fee (tax code YC)
- Immigration passenger inspection fee (tax code XY)
What's interesting is they say the 7.5% tax on the sale of miles is also eliminated right now. If there are some good bonus offers on buying miles right now, it might be a good time to jump in?
Last edited by glu800; Jul 23, 2011 at 3:12 am
Jul 23, 2011, 5:44 am
#9
Join Date: Oct 2006
Programs: UA, bmi, AA, CO, DL, B6, AMEX, Hertz, Most Hotels
Posts: 3,002
Not sure where this belongs, but I believe that it is of interest to those contemplating MR's at the moment.
Please correct my analysis if necessary. 7.5% reduction does not a mileage run make, but it could tip the scales on a marginal MR.
<sorry for bad title. Should have said FAA reauthorization issue. Greece we ain't! (mods alerted to request change)>
Please correct my analysis if necessary. 7.5% reduction does not a mileage run make, but it could tip the scales on a marginal MR.
<sorry for bad title. Should have said FAA reauthorization issue. Greece we ain't! (mods alerted to request change)>
I'm more bummed that I jumped out of bed to buy me some "discounted" tickets
Jul 23, 2011, 6:11 am
#10
A FlyerTalk Posting Legend
Join Date: Dec 2000
Location: Potomac Falls, VA
Programs: AA Plat 2MM, MR Gold, Avis Pref
Posts: 41,109
I was seeing 109 each way to SBA and today its 116 each way
on that note, its 28.60 in taxes where is should be 42.20