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Delta Charges Cents. Delta Pays Cents. This Makes No Sense...

Delta Charges Cents. Delta Pays Cents. This Makes No Sense...

 
Old Jan 27, 05, 2:47 pm
  #31  
 
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On the bright side of all of this, if you used the Delta Amex card, the $.10 charge earned you .2 miles.
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Old Jan 27, 05, 2:47 pm
  #32  
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Originally Posted by bigjim
I must side with Delta on this one. If you go to the grocery store (in a state that charges say a 10% sales tax on groceries) and buy a coke for $1.00. I don't think that the store can waive the $.10. Why would they want to lower their price so that the tax is included?

I realize that it seems a bit absurd on the surface - but I imagine that it is a lot simpler to collect the $.10 instead of trying to find a way to adjust the fare basis in order to pay the appropriate tax to the government.

IMHO, I think that Delta deserves a break on this one.
Waving the 10% sales tax is not the issue. The issue is doing a charge card transaction for 10c when it will cost DL more then that to process the request. Now, if you did not open the soda and brought it back and wanted a larger soda, and the merchant said the price difference is 10c and you wanted to pay with a credit card for the 10c, then the cost would be more then 10c to the merchant.
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Old Jan 27, 05, 2:52 pm
  #33  
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Originally Posted by bdschobel

In the end, I gave him my AMEX number and let him put through a charge for 10 cents so that I could fly an hour earlier without any hassles at the airport. I will not put that charge on my expense report because I would be too embarrassed.

Bruce

I would have proudly expensed it. They are idiots. Simply Good Business Lives!!!!!!!!!!!!!!!!!!!!!!1
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Old Jan 27, 05, 3:34 pm
  #34  
 
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This case isn't just isolated to DL.....all airlines must abide by new 2005 gov't tax rules.

Even if it's a change in flight, and the same fare, the fare must be recalculated when confirming and that results in any difference, which must be collected and transmitted to the government. It seems trivial, I know, but the rules are rules...
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Old Jan 27, 05, 3:55 pm
  #35  
 
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Still, the question remains...

Originally Posted by bluecrew85
This case isn't just isolated to DL.....all airlines must abide by new 2005 gov't tax rules.

Even if it's a change in flight, and the same fare, the fare must be recalculated when confirming and that results in any difference, which must be collected and transmitted to the government. It seems trivial, I know, but the rules are rules...
Why can't DL and the rest of them re-calculate the price so that base fare is increased/reduced by the net change in tax? Sounds fairly simple, and I would not mind it even if my "base fare" went up in case taxes decreased (unlikely, I know). As long as the total adds up to the same number, who cares?
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Old Jan 27, 05, 3:56 pm
  #36  
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Originally Posted by bluecrew85
This case isn't just isolated to DL.....all airlines must abide by new 2005 gov't tax rules.

Even if it's a change in flight, and the same fare, the fare must be recalculated when confirming and that results in any difference, which must be collected and transmitted to the government. It seems trivial, I know, but the rules are rules...
IT HAS NOTHING TO DO WITH TAXES... IF YOU HAVE TO COLLECT 10C AND IT IS GOING TO COST 30C TO COLLECT THE 10C, DONT COLLECT IT, INSTEAD TAKE IT OUT OF THE GENERAL LEDGER AND SAVE 20C. HOW MANY DL EMPLOYEES ARE POSTING HERE TONIGHT? DUH!
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Old Jan 27, 05, 3:56 pm
  #37  
 
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Originally Posted by JRF
Waving the 10% sales tax is not the issue. The issue is doing a charge card transaction for 10c when it will cost DL more then that to process the request.
The transactional cost to Delta is only one of the issues raised.

The original post also posed the question of why couldn't Delta just cover the cost of the additional tax out of the original fare and that is what BigJim was addressing.

Many other issues arise from the orginial post and also may validly be explored such as

1) Why is it that reissued tickets have the additional charge as opposed to being charged at the original rate or better yet, why were the 2005 tax rates not applied to the cost of the ticket in the first place as it is not like the new charges were dreamed up over night on the 31st and went into effect the next day. This is a valid thing to ask the Congress and the regulators about.

2) What about the transactional costs to Delta to rebook a ticket for an earlier flight when in reality (and the original poster acknowledges this) he did not have to do so?

3) Could you have paid the 10 cents in person at the gate?

4) If you had your boarding pass rebooked at the gate, would you have been charged the 10 cents?
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Old Jan 27, 05, 3:57 pm
  #38  
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Originally Posted by MileJunkie
Why can't DL and the rest of them re-calculate the price so that base fare is increased/reduced by the net change in tax? Sounds fairly simple, and I would not mind it even if my "base fare" went up in case taxes decreased (unlikely, I know). As long as the total adds up to the same number, who cares?
By the way, I am not sure, but I do not think DL has to collect the taxes, as long as they pay the taxes to the govt. I am not sure... but I am pretty sure the govt does not care where the money comes from so long as they get it.
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Old Jan 27, 05, 4:04 pm
  #39  
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Sprint did the same thing to me when sending me a final bill. The total was 2 cents. I called customer service and asked to have it waived. The nice girl on the other end said that unfortunately they had no way of doing this so I had to remit my 2 cent payment. Well, feeling that they needed as much aggravation as they were causing me, I remitted a 3 cent check. Now I show a 1 cent credit. I called them to ask for a refund and they said that they will process it, allthough it would take 1-2 billing cycles for me to receive it. Go figure!
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Old Jan 27, 05, 4:05 pm
  #40  
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Originally Posted by JRF
By the way, I am not sure, but I do not think DL has to collect the taxes, as long as they pay the taxes to the govt. I am not sure... but I am pretty sure the govt does not care where the money comes from so long as they get it.
Exactly. There is scant evidence that airlines actually collect any taxes from passengers; if they were able to pass along taxes, they would naturally pass along increased fuel costs, and all have failed at that.

Some states have laws prohibiting merchants from paying sales taxes on behalf of customers (and failing to add it to the bill), but federal airfare taxes contain no such provisions. Airlines have to itemize the ticket for the passenger, but there's no law that prohibits airlines from just paying the tax.
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Old Jan 27, 05, 4:22 pm
  #41  
 
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Sorry OT

Deleted

Last edited by vinnmann; Aug 9, 07 at 2:27 pm
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Old Jan 27, 05, 4:25 pm
  #42  
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Originally Posted by vinnmann
A WORD OF WARNING TO CONSUMERS: Do not do business with Provident Bank of Ohio. I had my mortgage with them, and when I made the final payment, I overpaid by $0.24. They refused to refund me the $0.24 indicating that they only do refunds for amounts greater than $1.00. I feel ripped off and cheated. Can someone please get me the number to the Better Business Bureau, and a good attorney (btw good attorney=oxymoron).
I do not know what the statute of limitations is, but one day your great grand children may get a few $100 out of that...
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Old Jan 27, 05, 4:29 pm
  #43  
 
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Last edited by vinnmann; Aug 9, 07 at 2:26 pm
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Old Jan 27, 05, 4:45 pm
  #44  
 
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Originally Posted by Thucydides
The transactional cost to Delta is only one of the issues raised.

The original post also posed the question of why couldn't Delta just cover the cost of the additional tax out of the original fare and that is what BigJim was addressing.

Many other issues arise from the orginial post and also may validly be explored ...
Thanks for trying to clarify my point Thucydides.

For the few people that wind up changing their tickets, I think that it would cost more to re-program all of the fares versus eat a credit card fee to accept a $.10 fare. Yes, I agree that it seems that there should be an easy fix for this - but, it's not always as easy as outward appearances would always seem - just like trying to make this point here on Flyertalk.

Last edited by bigjim; Jan 27, 05 at 4:45 pm Reason: formatting
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Old Jan 27, 05, 5:31 pm
  #45  
 
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Speaking of Taxes / Fees

I also thought Congress waived the 9/11 security fee to the airlines that last time they went to the hill asking for a bailout.

If this is the case why has this not been passed to the airlines customers?
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