Ticket cancellation rip-off
 

Last week I booked a trip from LAX to Australia on V-Australia Airlines. The airfare was $350, the various taxes were $314 for a total ticket cost of $664.
Today I had to cancel the trip because I can't go due to work obligations. So I called the airline and they told me the cancellation fee is $500! They are charging me more for the cancellation fee that the airfare! They are keeping the entire airfare along with $150 of the tax. Can they do that? This seems totally unfair. They make $350 if I occupy the seat, and $500 if I don't occupy the seat. I'm surprised that this practice is legal.
Oh well, serves me right for booking a plane ticket in the first place. I should always expect to get fleeced like this when I'm considering air travel.

Don't cancel; tell them you won't be using the ticket and want a refund of the taxes.

Honestly your problem was not realizing the cancellation and change fees before purchasing your ticket. I check those "just in case" though I rarely have to cancel or change.

I kind of feel like a heel when I contact hotels or tour companies to inquire about a booking and one of my first questions is, "What is your cancellation policy?" But I prefer to know that information up front so I am not surprised later on. Consider it a cheap lesson learned for any future travel bookings, be it air, hotel, car, tours, etc.

John

Not exactly correct. Part of what you're labeling as a "tax" is probably a fuel surcharge, or some other part of the fare, as the normal taxes on a U.S.-Australia ticket are about $125. I have a ticket there myself on Qantas next month and that's what I'm paying in taxes.

Did you copy off the fare rules when you bought the ticket? What did it say about cancellation fees? Did you ask about just rescheduling the flight for a different date? What would that cost?

Welcome to FlyerTalk :)

My ticket says:
Air fare: USD 350
Tax: USD 180.00 + 5.50 + 128.97

Yes I understand it is totally my fault for cancelling the ticket and getting screwed. No, I didn't read the fine print about cancellation fees, but even if I had, I still would have bought the ticket. Rescheduling to a new date would be a $200 fee (each time) and I didn't have a date to give them. I asked if I could postpone to a future date (i.e. give me credit for a future flight) but no, not possible. Had to either give them a new date or cancel the ticket.

Welcome to FT :).

USD 180.00 is the fuel surcharge. 5.50USD is the Passenger Facility Charge (my guess) and 128.97 is the refund of taxes.

Yea 500USD is a bit steep for a cancellation charge, but they can do it, you agreed to it in a contract when you purchased the ticket. Sorry :(.