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Posts with tag travelocity

Orlando's airport helps itself by helping you fly there cheaply

Filed under: Bargains, Budgets, Entrepreneurship, Extracurriculars, Kids and Money, Simplification, Technology, Transportation, Travel, Recession

It's unusual for an airport to think of itself as anything more than a way station. We have to visit them but we don't really want to, and consequently, most of them are resolutely run by bored civic authorities and industrial management agencies. Head to the web site of your local runway, and you won't find much more than a list of airlines, driving directions, and maybe a few warnings about how to kowtow to the TSA. Whaddaya expect? It's the airport.

So it's refreshing to see an airport take control of its own destiny. In Orlando, a city that stands to lose a great deal from the coming slowdown in tourism and convention business, the airport (coded MCO) wants to help passengers save money flying there. So it has uploaded page of the latest airfare specials flying there.

It makes sense, and it's so simple you have to wonder why your airport isn't doing it to stimulate business. Many smaller American airports are floundering as the major airlines yank service. But if airport authorities do all they can to help keep the planes full, the airlines will be less likely to suspend service. If they go, the airports, which depend on landing fees that are built into the cost of every ticket, will go into the budget hole.

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.