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July 1, 2008

Airline Ticket “Tax Holiday”: Who Should Win, You or the Airlines?

Filed under: Fuel Surcharges, Airfare Increases — Rick Seaney @ 10:47 am

The idea of an airline ticket tax holiday is being raised again and again in recent days, but I told you all about it about couple of months ago in one of my ABCNews.com columns.

I’m all for both winning: you (and me) AND the airlines. But in the meantime, it seems to be the government that’s winning in the face of airline woes.

It’s all about the fuel. And taxes. And, as I told CNN — last year alone, the government and airport authorities collected an estimated $14 billion (yes, billion) in airline ticket taxes, and this year it is likely to be much, much more.

I’ve asked this question before and I’ll ask it again: “Where is the money going, and why isn’t air travel any easier after collecting billions and billions of dollars?”

Time for a tax holiday, so please…keep reading.

I think the last thing the government needs to do is keep piling the taxes onto our airline tickets; as I’ve said before, the combination of rising fuel prices and additional taxes is getting to be — downright lethal.

I realize not everyone agrees with me, including airline passenger activist Kate Hanni — who says we need “complete government intervention” because the airlines are in “freefall”.

But, I say, let’s suspend some or all of the taxes until oil drops dramatically (many analysts say the price of oil “should” be $60 a barrel). If we do keep some taxes going, then let’s USE those taxes, to improve Air Traffic Control and anything else that can provide us with a more comfortable and safer flying experience.

And as oil comes down, the airlines could suspend some of their “nickel and dime” fees. Well — they could — but I’m afraid that horse long ago left the barn, and we are going to be stuck with those fees for a long, long time.

1 Comment »

  1. Good post, here and the linked article on ABCNews. I had not thought about the compounding effect of these taxes on rising prices and fuel surcharges, especially the “double-dipping” on fuel.

    Comment by mwarden — July 7, 2008 @ 7:12 pm

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