2nd Apr 2012, 16:55
An airline ticket could be broken down into three sections a) Fuel surcharge (which is always on the rise like a bat kite in the Easter breeze) b) Taxes and c) the base fare. I understand that a base fare could only be brought down so much as it accounts for several duties within the airline e.g. maintainace, labour cost etc. Fuel on a whole is continually increasing and that is subject to foreign markets demand. Therefore leaving taxes...........
I have observed in recent times the increase in airport taxes in the Eastern Caribbean. I am just throwing an idea out there looking for some positive feedback. What if the Caribbean governments had to cap their taxes and have one standard tax across the board? Would this help in reducing the over price of a ticket? Who really benefits from these taxes the country or the airline? (Hypothetical question)
I understand that you might want to upgrade your facilities; but by taxing so heavily the traveller that you want to use the same facilities necessary? It might deter someone from actually travelling to your destination which goes contrast to what you are trying to achieve.
Another point to mention, the UK’s Air Passenger Duty; in the Eastern Caribbean as majority of our passengers are not from the region. We depend so heavily on tourism and try to market a product to compete with the likes of Hawaii and Spain, Greece and the Philippines. Are our Governments coming together to join the world in a petition to this increase in tax which seems to keep the travelling European at bay?
I would like to hear your views positive and negative criticism is welcome and of course… suggestions :ok:
2nd Apr 2012, 22:28
In the Eastern Caribbean, taxes average at least 40% of the total cost of a ticket. This does not include departure taxes that are taken directly from the passenger as he leaves the islands.
These taxes are added freely by the governments who then join in the cry that air travel is too expensive. Their utter hypocrisy is that they complain loudly when the UK puts on the APD (with which I do not agree - the APD I mean), then come back to the islands and increase air taxes!
Why the taxes? Simply, they spent too much building (rather overbuilding) new terminals and facilities for World Cup cricket and we are now paying the price. And of course, each new project had some of the funds disappear into the same deep pockets.
These taxes are also used to subsidise non-regional airlines who are paid to fly into the islands with revenue guarantees.
Are you aware that a large chunk of EC airspace - from north of PTP to south of FDF is French airspace? And that anyone flying through this airspace will be involved in the EU ETS? Yet another tax coming.:ugh::ugh::ugh:
4th Apr 2012, 05:57
Thank you for breaking it down for me. However I am still at a lost how the EU ETS will work in the Eastern Caribbean. I am aware that FDF and PTP is French airspace however, is it not capped at FL250 and above is Piarco CTR? Therefore high level traffic might not have to worry about it. Traffic passing through who can't go that high or might want to go to DOM; how will they be regulated for the tax? You can't expect every operator to have low emissions engines (freight dogs). Will the EU come to the operator's base and run an emissions test (highly unlikely) or maybe it might be for an operator landing at FDF or PTP (that seems more reasonable to me)? I guess we will see in the future never the less as you said ...."Yet another tax coming.:ugh::ugh::ugh: and airfares to increase :uhoh:"
5th Apr 2012, 00:20
The DGAC send out their ETS form to the operator. The operator is required to complete the form that requires fleet type, number of aircraft and the mileage flown in french airspace. Together with the aircraft fuel burn (smaller airlines are allowed to use what they call the "simple calculation" which is a spreadsheet embedded in the form) they determine you carbon emmissions.
A light twin doing an occassional flight might get away, but inter-Caribbean airlines operating usually below FL 250 must submit the form and await the "decision".
I can guarantee you that if you see the airspace/navigation charges a regional carrier has to pay you would probably fall off your chair.
Oh, and by the way, at least 4 islands have increased their departure tax and airport "development" tax. Not wanting to take the heat they have ruled that the new tax must be added to the ticket at purchase instead of being paid by the passenger at departure. This way the politicians can all cry about "High ticket cost" in their holier than thou manner.
Did you know that Anguilla has an "environment tax" on all arriving aircraft?
5th Apr 2012, 01:55
Yet still one wonders why a LIAT ticket is soo expensive. Every LIAT flight leaving ANU going south attract these fees, so you can imagine what they pay. I'm sure the Burns' fell off their chair when they got their first bill.
5th Apr 2012, 07:24
BGI LI 0521 Y Y 05APR 0945 Y12OW
ANU LI 0362 Y Y 09APR 0820 Y12OW
USD 386.00 BASE FARE
USD 38.60AG TAXES
USD 25.00WK "
USD 1.50DI "
USD 27.50JG "
USD 2.50JH "
USD 481.10 TOTAL
AG - Anguilla ticket tax
WK - Anguilla INTERNATIONAL PASSENGER FACILITY CHARGE
JG - BARBADOS PASSENGER SERVICE CHARGE
They're not bad compared to what you pay out of the UK.
KIN BA 2263 Y Y 05APR 1105 Y2
LON BA 2262 Y Y 18APR 1725 Y2
GBP 1552.00 BASE FARE
GBP 213.00YQ - fuel surcharge (hidden fare increase)
TAXES / CHARGES
GBP 11.76UB UK PSC
GBP 81.00GB UK APD
GBP 1904.56 - total
7th Apr 2012, 12:28
Its is not just the Caribbean but across the board Governments ee the airline industry as a goose laying a series of golden eggs for them to take!
As Nightwolf said there will come a point where Joe Public says "Enought I cant spend that much" - And I who used to do transatlantic a couple of times per year am down to once and that now is under scrutiny, after all what do I need that weather for???
A little story, I used to get ID00's with a major US Carrier (thank you) and travelled constantly, then life changed and I went to a 'buddy pass' - On Standy By I still paid USD 660 to gpo to the UK!
Like I said we will vote with our wallets and the carriers will suffer until enough of them (or IATA) stand up and say we have to reduce flights as it is no longer efficient - then we have these huge "Shopping Malls' that Governments have milked from the industry standing half empty.
Watch St Vincent and its little folly at Argyle