Tag Archives: Government taxes and fees

Random Thoughts: Airline Pricing, Ebola, Chattanooga Rail Service, Flight Safety

Just some random thoughts:

Airline Pricing: Good news and bad news! Good news, the House has passed the bill to allow the Airlines to show fares without government taxes and fees. The airlines will show the amount of taxes and fees separately in a footnote or pop-up adds. Bad news, total airfare will be the same and you may think you are getting a lower fare than you do at checkout!

Ebola: With the news of the Ebola issues should passengers be concerned? Probably not, but you should always practice safe habits when flying, such as keeping your hands washed, avoid surfaces where others might leave a virus, avoid person to person contact when possible. The virus cannot be transmitted via airborne methods.

Chattanooga rail service: There continues to be talk about getting rail service for Chattanooga . With Chattanooga’s rail history it would be great! However our politicians want to go for “high speed rail”, which of course would be nice. Wouldn’t it be more more feasible to start off slow and then move to high speed? Use existing rail to see if people with actually use the service, then move forward from there!

Flight safety: With the news recently of the MH 17 downing and two other aircraft crashes, the question is raised, is it safe to fly? Without question it is still very safe to travel …… probably the safest way. Should you take precautions? It never hurts to. Know your aircraft’s route and if it flys over a potential trouble spot you can always consider other airlines/routes. US airlines sometimes have stricter limitations than foreign carriers, but I think with the MH17 incident all airlines will error on the safe side of routes!

“The Government gets how much?”

Have you ever thought air fares were getting higher …….. and higher? Have you ever thought about what percentage of your air fare went to the Government (taxes and fees)? As I noted in an earlier post, the amount TSA charges to each ticket has increased from $2.50 to $5.60 per ticket, one way! Obviously ticket price will increase at some point, but will we blame the airlines or Government?

In 2012 the Department of Transportation reversed an advertising rule that has been in place for over 25 years. As a result of the change, airlines were “forced” to include Government imposed taxes and fees in the base price of tickets they advertise. This change tends to hide the taxes and fees from the customer, giving the impression that increases in ticket prices are caused by the airline and not the Government!

Accordingly to an article in the Houston Chronicle, currently a typical $300 airline ticket includes about $62 in Government taxes and fees, which is more than 20% of the ticket price!

There are efforts currently in Congress to address this issue with The Transparent Airlines Act which would help bring clarity to airline advertising.

Some when you buy that ticket just be aware that about 20% goes to th Government!