TAXES...when is enough, enough?

[Travel Guru]

Just had an interesting email letting me know Malaysia Airlines are adding in a new YR tax which is an administration fee.

When queried as to what it was administering, a colleague was told 'it's a cost of doing business tax/surcharge'.

So I guess the airlines now think that it's okay not only to include fuel costs (a business expense) in their taxes, but also to charge a fee for collecting other fees! :mrgreen::mrgreen:

Whenever will it stop?!

TG

 

[AVC]

I think all advertised costs should be all inclusive.

None of this "plus taxes/GST/handling/fees/whatever".

The ticket is a hundred dollars. Oh, wait, plus fuel surcharge (hang on, isn't fuel part of the fare, I don't get in a cab or a bus and pay a fare plus a fuel surcharge). Plus taxes. Plus a credit card surcharge. So you pay a fee for paying.

Same goes for cars. I want to know how much the car is. Not how much dealer delivery, on road costs, blah blah blah. That should all be part of the price.

Welcome to Australia, the taxation nation

 

[anat0l]

Although prices in aviation are always quoted inclusive of all taxes and surcharges, the practice of segmenting a ticket into base fare plus taxes and surcharges is common all over the world, almost irrespective of jurisdiction.

(Well almost. You can quote a fare in Australia without adding a credit card surcharge. You can also quote a fare which doesn't include baggage that may be chargeable.)

YR charges are nothing new - SQ has had a YR 25.00 for a long time (I think it's supposed to cover credit cards but the description on SQ's website is an "administrative and insurance fee"). I wonder how much MH's YR charge is and precisely I'd like to know exactly what it is being charged on (and my guess is, again, credit cards!).

At least for TAs now, YQ is included in commission.


Has anyone got a history on how the airline industry came to a point where taxes, fees and surcharges were separated out from the base fare? Is this a large holdover from America / some parts of Europe (where the said practice is very common in other industries, e.g. hotelling)?

 

[TheInsider]

None of this "plus taxes/GST/handling/fees/whatever".


Welcome to Australia, the taxation nation

Well Malaysian is not Australian?

 

[ozbeachbabe]

Has anyone got a history on how the airline industry came to a point where taxes, fees and surcharges were separated out from the base fare? Is this a large holdover from America / some parts of Europe (where the said practice is very common in other industries, e.g. hotelling)?

I'd say late 80's early 90's saw the introduction of taxes when Governments realised they could get airlines to do all the dirty work for them.

Once upon a time all you paid was the local departure tax from Australia of AUD20.00 plus the departure tax from the country you were visiting. These were usually payable at a cashier booth at the airport.

 

[dajop]

I Welcome to Australia, the taxation nation

Be that as it may, but these are not taxes, just charges masquerading as taxes. Notices how you never see a quote for "surcharges and taxes" ... it's always "taxes and surcharges" ... and most people drop the "and surcharges" bit.

I'd say late 80's early 90's saw the introduction of taxes when Governments realised they could get airlines to do all the dirty work for them.

Or more to the point, airports were privatised and airport operators started charging various charges by passenger which airlines were able to pass on to passengers as taxes! Not like in UK were there are some substantial taxes on airline tickets, to the point where it's cheaper to fly elsewhere to avoid them.

 

[Travel Guru]

YR charges are nothing new - SQ has had a YR 25.00 for a long time (I think it's supposed to cover credit cards but the description on SQ's website is an "administrative and insurance fee").

It still is a CC surcharge, if I issue a ticket to cash instead of oncharging a clients CC through to SQ I can remove it from the ticket/tax quote.

TG

 

[Oneworldplus2]

I wish for 2 things to happen in the industry;

• Once a airline ticket is purchased and the e-ticket arrives (or paper ticket), 1 page should have a complete itemised list of all taxes/charges. All abbreviations to be listed and in plain English so it is transparent to the client.

• All fare buckets to be 100% visible (maybe in a bracket next to price??).

 

[anat0l]

I wish for 2 things to happen in the industry;

• Once a airline ticket is purchased and the e-ticket arrives (or paper ticket), 1 page should have a complete itemised list of all taxes/charges. All abbreviations to be listed and in plain English so it is transparent to the client.

• All fare buckets to be 100% visible (maybe in a bracket next to price??).

The worst part is that for most part, people will not care for either of these.

They pay one price (yes, it goes up - they complain it goes up, not a new tax has been added) and they couldn't care less that their ticket is a Q ticket (until you need to explain it to them - hopefully not!)

I would like it though, and so far have to rely on GDS tricks or what not to get at this information. But that doesn't help the "more taxes, more taxes" thing...

 

[777]

A made up charge by an airline is NOT a tax. Nice way of deflecting the blame though.

 

[serfty]

A made up charge by an airline is NOT a tax. Nice way of deflecting the blame though.

It also lessens the overall cost to the airline/scheme of reward redemptions.

 

[ozbeachbabe]

Be that as it may, but these are not taxes, just charges masquerading as taxes. Notices how you never see a quote for "surcharges and taxes" ... it's always "taxes and surcharges" ... and most people drop the "and surcharges" bit.

Or more to the point, airports were privatised and airport operators started charging various charges by passenger which airlines were able to pass on to passengers as taxes! Not like in UK were there are some substantial taxes on airline tickets, to the point where it's cheaper to fly elsewhere to avoid them.

Wish it was illegal for Governments to sell off major infrastructure like airports to the highest bidder because the minute it happens, up go the charges & rents to airlines & shops at the airport who have to charge ridiculously expensive prices to the consumer to cover the exhorbitant costs.

Not to mention the $3.00 exit tolls charged to taxis just to leave the bloody airport which of course are oncharged to pax.

Passengers also have to put up with second rate airport facilities like leaky aerobridges or no aerobridges, baggage belts that breakdown all the time because they're in dire need of replacement not that pax blame the owners of the airport as the airline concerned always cops it.

 

[11sjw]

If you're Gillard and Swan, never.