Originally Posted by
Lux Flyer
Thanks to the unofficial PNR viewer which showed the PNR comments (
United unofficial PNR viewer) we actually know the paid buy-up offers go into a revenue booking code. Only plus points/MUA's go into RN. And ON is outright mileage award booking.
Example PCU from that thread:
I feel certain that this was an occasional problem with the older system -- mostly around people suddenly not being able to get PQMs for their flight because they bought up to PZ without knowing it. If they either (a) aren't doing that anymore, or (b) don't do it with RN in particular, then that's good to hear. (Although I thought I saw a ZN example fairly recently).
Originally Posted by
Lux Flyer
Which, as written, is entirely useless when it comes to explaining if ancillary purchases should be taxed, but is why the clarification that AA got is so important. Essentially the IRS determined "transportation by air" refers to the fare that is purchased, which I actually agree, is probably the best way to define that term since the fare is ultimately what is dictating the terms of the transportation. But also explains why the refare gets the 7.5% tax hit, but the paid upgrade doesn't.
Sure, but to the layman (or politician), you're accomplishing the same goal in either case.
I read an opinion once saying that tax law was the most complicated / confusing law, because whereas with criminal law, torts, etc., the law fits into a pattern -- you can kind of figure out what the purpose of related statutes are, so the whole makes sense; but with tax law, it's impossible to make it into a coherent whole because there's no guiding principle; it's built ad hoc to favor or disfavor particular activities or groups with no obvious singular purpose. This might be the crowning example of that -- buy-ups aren't taxed because they aren't; QED.
