pinniped

Anyone have any idea what this means or what this will be when it goes into effect?

By definition, the same-day standby benefit for A-listers doesn't allow you to reroute, adding segments and therefore adding some of the fixed per-segment taxes. It does not involve paying additional fare or fees, so there's no additional excise or sales tax.

Why would the fees change? Is Southwest paying the government something additional today (not passed on to us) when we standby for flights? Since standing by for flights has been a commonplace thing for decades across many airlines with no mention of tax implications, I'm not sure what this even means.

Exact language from the email:

NoStressHere

The effective date is in your post.

This means that IF (and only IF) the feds raise the $5.60 fee or the airport changes the fees between when you bought your ticket and when you upgrade, they will collect the difference.

There is a good chance this will rarely impact folks.

Again - only NEW and EXTRA fees from the government(s) would cause an issue.

SpeedyDelivery

Are you sure they won't try to collect additional PFCs if you change your routing? It seems the terms would allow for this.

NoStressHere

I do not think anyone here knows the answer to that.

ESPECIALLY since that does not take effect for over a year from now.

ryw

My interpretation was that in 2021 they’d make you pay $5.60 if you standby and clear onto a new flight, but it’s really not that clear to me.

NoStressHere

Any ADDITIONAL. And, I am willing to bet my new Companion Pass that whatever answer you get today will change before the first fee is ever charged 15 months from now.


FROM SOUTHWEST

"...anyone who changes their itinerary using same-day standby will be responsible for any additional government taxes and fees..."

ryw

Ah good point. Then my best guess is that this will be not be the $5.60 9/11 fee, but rather the 7.5% excise tax on tickets based on the fare of the new flight.

For example, say I purchase a WGA segment at $49 (and the excise tax is some small part of that, maybe about $2.50). Day of travel I want to standby on an earlier flight, which now costs $149 without A-list status. With the A-list standby, the difference in fare is waived, but the 7.5% excise tax on the $149 ticket is higher than the $49 ticket, so they'll ask me to cough up another $4-5 or so to make up the difference. That's the only way it makes sense to me.

(Though I agree, I wouldn't be surprised if stuff changes between now and 2021)

Often1

It is written such that WN could charge the extra airport fee if one adds a connection. Whether WN will do that is likely something not even WN has considered. But, it gives WN the flexibility to do so should circumstances arise.

As one can't even yet buy a January 2021, ticket, I would not stay awake nights worrying and remember that if this does come to pass, in the worst scenario, it means $5.60 for a connection and whatever additional taxes might be enacted. Thus, not likely a big deal.

rsteinmetz70112

I wonder if there is some impending change in how fees and taxes will be calculated/assessed? This seem especially likely with International flights.

pinniped

So, the things that went through my head before posting here were the $5.60 fee on an added connection and the fact that a wider variety of international destinations increases the chances that a tax somewhere is changed with less advance notice than Southwest's schedule is open. In that case, you'd pay the new rate on a confirmed ticketing change after it went into effect, and they're just saying that will hold true if you do a same-day standby.

But today's standby rules don't allow you to change routing on a voluntary A-list standby, do they? And the theoretical future tax change doesn't seem worthy of a whole email - otherwise I ask why I haven't received similar emails from all sorts of airlines either now or in the past.

Are there any countries/markets where the tax assessed on a flight is dependent upon how far in advance the ticket was booked or last changed?

Would the taxes on a nonstop flight be different than on a one-stop flight that did not change planes or flight numbers? Would Southwest permit one to standby for such a flight? (e.g., I'm holding nonstop MCI-PHX but standby for MCI-DEN-PHX and remain on the plane while in DEN.)

kennycrudup

That's exactly what I was thinking.

When I did my 8-segment run a couple of weeks ago, I'd discovered that since I'd been able to A-List Standby for all but the first flight that they were indeed earning points at the Anytime rate, and the BPs did indeed show they were Anytime fares.

... but this is what bugs me- that seat was "worth" $29 to WN when I'd bought it, and as I was able to fly standby I wasn't displacing another passenger, so the new seat was "worth" $29 as well (hell, one of the flights went out with 19 pax). Since WN isn't actually collecting this $$, what's their justification for charging me taxes on it?

What I'm getting at, especially with the effective date so far out, is I wonder if this is due to some new Government tax that's going to take effect that charges tax on the "value" of a ticket vs. the "price" of it? If this is the case, I'm thinking that elites on legacies who get upgraded on low-fare tickets to F could be in for some decent-sized tax payments on their "free" upgrades.

NoStressHere

I think folks are putting way to much brain cells into something that does not yet exist.

WN appears to only want to option to collect money they have to give various government agencies. Not even sure if there will be any changes.

As to an upgrade - it may not even be charged. The taxes and fees are on sold tickets. Something "free" does not have a cost in most cases, so no charge from the feds and no charge to the customer. So, when a legacy carrier gives a FF that first class seat, the fare basis did not change. Sort of like how tickets purchased with points have no taxes on them. But, they do have the $5.60.

The example of the getting "anytime" boardings is a good one. The FARE BASIS did not change. You were charge $29 and were still charged $29. So, no increase in taxes. Just like if you buy a shirt at half price. Taxes are on the CURRENT price, not the original price.

Again.. way too many brain cells on a puzzle that can not be answered at this point.

Often1

The excise tax is paid on the fare paid. Thus, if you pay $149 for a ticket and are changed to a flight which costs $300, there is no excise tax difference unless you pay that fare difference.

There is not even a whisper of a murmur of a rumor that it might be recalculated based on "value".

kennycrudup

I hope you guys are right

kennycrudup

FWIW, I've been able to go A-B-C to A-C and vice-versa on an A-List SB.