Effect of 2003 Security-Fee Holiday
 

Today, President Bush signed into law the war-related supplemental appropriations bill, which includes roughly $3 billion in financial assistance to the airlines. One provision of this bill suspends collection of the 9/11 security fee (up to $10 per itinerary) through September 30, 2003. (The starting date is either April 1 or June 1. I haven't been able to determine which date is in the version the president signed.)

The airlines have been imposing this fee on award tickets. Will they still collect it during the "holiday"? Does anybody have any information on this?

Bruce

airline folks have been saying that the public has a limit on what it will pay & that these fees, come from what they could charge.. don't expect to see a reduction.

The security fees did not increase the gross amount that fliers were willing to pay; therefore these fees came out of the hide of the carriers. In fact the gross prices I paid last week for a bunch of Southwest tickets, all the new fees included, were the lowest I have paid in over 4 years.

A fee holiday will go and should go to the carriers as they increase the net price to keep the gross price the same. Look for plenty of articles by economic illiterates complaining that the airlines are gouging passengers.

What about award travel? I expect that I should get a refund for the fees collected on these tickets?

I agree with the posts about not reducing prices on "regular" tickets. But I'm asking specifically about AWARD tickets. Will the airlines continue to impose this fee, when it is not payable to the government? Seems like a pretty good question. I asked United, but they don't have an answer yet.

Bruce

Ticketed 2 AA award itineraries, F to Hawaii, earlier this week and was charged $10 per ticket. Next day heard announcement of holiday. I'll try to check effective date and post here. If it's 4/1, sounds like AA will have to refund.

If the government isn't collecting the fee from the airlines, the airlines should not be allowed to charge it SEPARATELY to the passengers. That's like trying to charge sales tax to your walk-in customers if you're a store in a state that doesn't have a sales tax.

Airlines have captured savings before from tax holidays (like the temporary ticket-tax expiration a few years ago) when taxes were in the BASE fare. But because this is an add-on charge, it should not be passed on during the tax holiday.

If airlines want to try to raise the base fare by the amount lowered in the security charge, then fine. I think competitive pressures can take care of that.

From the flyer's perspective, the fewer the add-ons, the better.

[This message has been edited by RustyC (edited 04-17-2003).]

Did not know this was in the bill. I have four award tickets upcoming, $40. Since the money goes to the govt, I want it back.

Its fraudulent of them to collect such a "tax" when none is imposed by the govt. For the morals police on this board, its also unethical. For the nitpickers, it probably also violates the fine print of the FF TOS or whatever its called. However, I fully expect no refunds.

BTW, many online or catalog retailers collect sales tax even if its not due to the govt. You can be sure they do not forward such amounts to the govt unless actually required to do so.

The wording of the supplementary appropriation signed by the President, I just checked it on the DHS (Dept of Homeland Security-TSA's parent org) website indicates the govt will give back to the airlines what they collect for security charges. Sounds like I just gave AA $20 for 2 award tickets and now they'll get $20 more out of the check I just wrote IRS this week. Great! I just called AA and they say all this is news to them. They're still charging "up to" $10 in security fees for each award ticket. I need to quit my day job and go be a lobbyist for the airlines!

Im ticketing a NWA award ticket, they are still charging me the 10 fee.

Just paid $10 security charges for my DL award ticket to the Freddies. Ticketed today.

I was charged the fee 2 weeks ago for tickets in Feb. 04. Will the fee holiday apply to those tickets?

I must disagree here. While the price of tickets purchased at a later date may not decrease, those tickets purchased before the effective date of the bill for travel after the effective date should be eligible for refunds of the fee. This collected fee was paid to the airline as a pass through tax to the government. Since the gov't is no longer collecting that fee, it should be returned to the customer.

Good question about awards though. Seems like if it was already paid a refund is due.

You can bet that the same "mass tort" law firms who sucessfully filed and then settled class suits against hotel chains regarding their "energy charges", will be licking their chops over any airline's slightest misstep with this tax issue.

It's as sure as the sun will rise in the east.

Tex



[This message has been edited by Ex-Tex (edited 04-18-2003).]