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Taxes not being collected by UAL.com due to FAA strike

Taxes not being collected by UAL.com due to FAA strike

Old Jul 23, 11, 12:06 am
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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)>
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Old Jul 23, 11, 12:27 am
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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.
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Old Jul 23, 11, 12:32 am
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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.
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Old Jul 23, 11, 12:36 am
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no tax on .bomb
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Old Jul 23, 11, 12:47 am
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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.
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Old Jul 23, 11, 2:07 am
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delete

Last edited by glu800; Jul 23, 11 at 3:12 am
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Old Jul 23, 11, 2:25 am
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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!

Last edited by Condition One; Jul 23, 11 at 2:51 am
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Old Jul 23, 11, 2:47 am
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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?

Last edited by glu800; Jul 23, 11 at 3:12 am
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Old Jul 23, 11, 5:44 am
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Originally Posted by hobo13 View Post
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)>
and of course, now all the UA flights I was eying have had fare increases greater than 7.5%. oh well....

I'm more bummed that I jumped out of bed to buy me some "discounted" tickets
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Old Jul 23, 11, 6:11 am
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Originally Posted by bk3day View Post
and of course, now all the UA flights I was eying have had fare increases greater than 7.5%. oh well....

I'm more bummed that I jumped out of bed to buy me some "discounted" tickets
I noticed this on AA as well.

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
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