View Full Version : Taxes
Just looking at prices for a trip back to the UK next march. Can anybody explain how AA are charging $180 in taxes and fees whilst BA want over $400, as do Virgin.
Hartington
9th Jul 2010, 05:59
Bear in mind that although we all refer to them as "taxes" the are actually "taxes, fees and charges". Last time I looked AA showed their fuel surcharge as part of the fare constructions while BA and VS showed it as a t/f/c.
HXdave
9th Jul 2010, 09:20
hartington's got it pretty spot on, in the fact that some airlines automatically include certain things in the basic airfares, whilst others show it as a totally seperate item.
i believe this stems back from the days when most airlines used to give 9% commission to travel agents who used to book them. the 9% used to be on the basic fare, excluding taxes. so by including as little as possible in the basic fare, and then as much as possible in the taxes section, it reduced the amount it paid out to agents........... eg:
old system:
Fare £1000.00
Taxes £100.00
total £1100.00
9% of £1000.00 = £90.00 commission to agent
New system:
Fare £ 750.00
Taxes £350.00
Total £1100.00 (note same fare to customer as above)
9% of £750.00 = £67.50 commission to agent
£22.50 saved by airline!
Capetonian
9th Jul 2010, 09:55
Some airlines include the 'fuel surcharge' or part thereof in the base fare, others don't, enabling them to quote a lower base fare which can give them a better ranking on a GDS fare display. Of course it's blatantly dishonest but appears to be allowed. The base fare can be £200 and the 'fuel surcharge' can add the same amount again, and it's not a surcharge, it's just a hidden fare component. Government and authority imposed taxes are another story.
Below is the fare breakdown of a Lufthansa fare LON-JNB.
Base fare : GBP 244.00
Surcharge : GBP 214.20YQ
Airport taxes/charges :
GBP 23.43UB
GBP 24.60RA
GBP 5.80DE
GBP 50.00GB
GBP 0.90EV
GBP 16.90ZA
GBP 12.80WC
Total : GBP 592.63
Most airlines no longer pay commission, or pay only 1% in some cases.
Bought some tickets for my daughter, son-in-law and granddaughter MAN-LGW-MCO (Orlando) & return with BA in February. (cheaper than Virgin MAN-MCO)
Basic fare for all three about £400. Total price with taxes and fuel surcharge £1175.
Looked at LHR-TLS-LHR the other day. The tax is £20 more on the sector LHR-TLS than on the return.
How long before the UK aviation industry is taxed out of existence by UK taxes being higher than in Europe??
crewmeal
10th Jul 2010, 05:29
And if you don't travel for whatever reason, don't expect your tax back in a hurry.
BBC News - Airlines 'fail to refund taxes' says Which? (http://news.bbc.co.uk/1/hi/business/10583101.stm)