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Posts with tag orbitz

Are the airlines' extra fees cheating the U.S. out of tax dollars?

Filed under: Budgets, Debt, Tax, Transportation, Travel, Recession


The airlines might have found a tax loophole, and you're it. The travel consultancy firm T2 recently published a worrisome blog post that is gaining traction. The airlines' extra fees, it says, aren't just costing consumers more. They're also enabling the airlines to dodge tax to our government.

Until a few months ago, checking a bag was considered a service that came with the base fare that you paid when you bought your plane ticket. That was taxed at a rate of 7.5%. But now many airlines are charging up to $50 for each bag each way, and because it's not part of the base fare, that fee isn't subject to tax. T2 says that cash belongs to the airlines, free and clear.

So a carrier like United, T2 writer Timothy O'Neil-Dunne calculates, would be cheating Uncle Sam out of tax income of $7.5 million for each $100 million it makes on extra fees. Given that United recently surmised that it stood to make $700 million on its extra fees, that's a lot of cash that won't be going to our schools, our roads, our veterans programs, and our elaborate Wall Street bailouts. Not only do consumers get screwed by these extra fees, they get screwed out of the greater good of tax revenue.

More travelers mixing business and pleasure

Filed under: Saving, Travel

vacation photoDespite the economic crunch and indicators that business travel was slowing, Orbitz for Business reported today in its quarterly report that almost two thirds of business travelers are traveling as much or more than they have in past years, an increase over last quarter. The survey also picked up on an interesting trend in business travel that shows three fourths of businessmen and women mixing business and pleasure while traveling for work.

The survey found that close to 75% of business travelers have extended their trips to accommodate a vacation when traveling for work. In response to a separate question, over 40% of business travelers have taken someone with them on the trip without extending their stay. These numbers aren't surprising to me since this is how my wife and I have had almost every vacation since our honeymoon.

I started a new job just before we got married and between adjusting to life outside a dorm room and paying student loans we didn't have much cash left over for travel. Thankfully my first working year took me to West Virginia, Chicago and South Carolina for conferences and training. My wife accompanied me on two of these trips and our only out of pocket costs were for her meals, which let us do some cheap sightseeing and catching up with friends.

Airlines tweak flight routes to battle fuel prices

Filed under: Budgets, Simplification, Transportation, Travel


You may not have thought there was anywhere else for the airlines to cut back. But, no. To cut costs, they have actually figured out a way to alter time and space.

Turns out that flight paths as we know them are less-than-efficient, and there are a few methods to wring more economy from the way planes fly on established routes. The airlines are already at it.

Method One: Flights get a little shorter. The International Air Transport Association (IATA) has estimated that in Europe, flights are about 30 miles longer than they have to be, mostly because jetliners have to avoid military airspace. Get the guys in green to ease up on peacetime airspace restrictions, and allow commercial pilots to make tighter turns (so hold on to those non-existent peanuts, folks). European flights could shorten by about four minutes if that happens. For the past year, American airlines have been permitted to use military airspace during peak travel periods like Memorial Day and Thanksgiving, but mostly to ease delays. It's not a leap to extend those permissions to help ailing airlines save a little more cash.