Southwest rips off PAX Taxes!

[The Prussian]

Hmmm...airline bookings were done at certain price points. How far out should airlines sell tickets at the new price, ie: without the 7.5% ticket tax, the 7.5% freq flyer miles tax, the $3.70 per segment fee, the $16.30 int'l arrival/departure tax, and the $8.20 Alaska/Hawaii to US mainland tax. And now...if they're sold at the new price, once the taxes are reinstated (next week,...next month??), do you recharge those new costs to those future passengers, or just eat the cost of the taxes? I imagine there are certain preconditions to these refunds and future ticket sales, but it does introduce a complexity to projecting accurate bookings (ie, how many bookings get cancelled, once the taxes are reinstated, and the passengers consider the cost now to be too high?)
Finally, if airlines were huge profit centers, making obscene profits, I'd probably feel differently. Sadly, that is not the case. Major percentage of ticket prices are taxes, from the above mentioned, to fuel taxes, airport fees, and TSA. IMHO, airlines could use a little help towards the bottom line.

 

[kf4amu]

I think the IRS will mandate taxes paid prior to the shutdown for travel during the dates it is shut down will need to be repaid, because that is, as you mentioned, a bait and switch. False advertising. I think every airline will refund those pretty easily.

However, the tickets being sold now SHOULD be raised higher. 7.5 percent increase in ticket prices SHOULD help the industry return a modest profit. Hell it may even allow them to start repaying some of the debt they took down during the 2008 crisis in order to survive. Good for them, trying to do the right thing and survive.

 

[SWA/FO]

Kwick forgets who he works for. Nice to bite the hand that feeds you.

 

[Luv2BFlyin]

It's OUR passengers - in case you forgot.

Gup

I guess they are "our" passengers if AAI is doing the same thing.

 

[Chairman]

I think the IRS will mandate taxes paid prior to the shutdown for travel during the dates it is shut down will need to be repaid, because that is, as you mentioned, a bait and switch. False advertising. I think every airline will refund those pretty easily.

However, the tickets being sold now SHOULD be raised higher. 7.5 percent increase in ticket prices SHOULD help the industry return a modest profit. Hell it may even allow them to start repaying some of the debt they took down during the 2008 crisis in order to survive. Good for them, trying to do the right thing and survive.

Or come back and tell the airlines they need to back pay the taxes retroactively once they refund the FAA. Tickets are cheaper than they were 30 years ago. Move along there is no story here.

 

[Donald]

Why would a company that SHOUTS "Bags Fly Free!"

Rip-Off their passengers for the taxes that they paid?

Why are you slamming SWA for doing this when there are others doing the same thing? Sounds like you just have a bone to pick with SWA.

 

[Fubijaakr]

So, if everybody else steals from the public, that makes it OK?

 

[flint4xx]

What are you talking about. GK just said on CNBC that the pax that had already purchased tickets are getting refunded and they aren't taking the taxes out on new ticket purchases. How's that shoe taste?

 

[SWA/FO]

Hows that paycheck? Bite the hand that feeds ya.

 

[kwick]

What are you talking about. GK just said on CNBC that the pax that had already purchased tickets are getting refunded and they aren't taking the taxes out on new ticket purchases. How's that shoe taste?

I'm glad he changed his mind and
followed Delta and others who did
The right thing from the start.

He certainly saw "Which way
the wind was blowing" and
Minimized the bad publicity.