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Congress: Pass along "savings" to customer

Old 07-27-2011, 05:03 AM
  #1  
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Default Congress: Pass along "savings" to customer

or save it for the Aviation and Airway Trust Fund.

They are saying exactly what I have been saying from the beginning. If taxes are such a burden on the American consumer and is depressing demand, why aren't the airlines on the side of the consumer in this tax holiday? Because they are unethical, two-faced liars.

Both sides of the aisle agree on this issue according to the article with John Mica and Ray LaHood weighing in as well. Sounds like they will find a way to recoup this money in whatever legislation they do pass for the FAA if the airlines continue to pocket the money.

Congress to airlines: Pass along savings to passengers or trust fund - CNN.com

"As we have heard from airlines for many years, these fees, all of which are passed on to the consumer, depress the demand for air travel, hurting the industry's bottom line. We are left to conclude that your previous assertions were incorrect about the impact of taxes and fees on the industry," Sens. John D. Rockefeller IV, D-West Virginia; and Maria Cantwell, D-Washington, wrote in a letter to Delta Air Lines CEO Richard Anderson, chairman of the board of the Air Transport Association, an industry group.


Rockefeller and Cantwell urged the airlines to "put all of the profits that they are making" from the tax lapse into an escrow account so they can transfer it to the Airport and Airway Trust Fund (AATF) when Congress reinstates the taxes.


"If the industry is unwilling to protect the integrity of the AATF, at a minimum, it should pass the savings onto the consumers," the senators said.
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Old 07-27-2011, 05:52 AM
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You people make me sick. What don't you understand about business, profits, and government taxes? The last person I want to hear from regarding spending money, discounts, or profits is Congress. They need to deal with their own money problems.

Who gives away their product for free or minimal profit? NOBODY. I wonder if Jessie J's song "It's not about the money money" is for free ... NO it isn't.



For decades this industry has failed to adequately price the product for what it is worth. And now you people are whining that because Uncle Sam is currently not stealing part of our profit, that we should give it back to the consumers? What, so they can get used to even artificially lowered tickets prices in the future so that becomes the status quo?

If the price was too expensive, people wouldn't fly. Our product is priced for what it is worth. Quite frankly, it's worth a lot more.

When it is cheaper to fly at 500 mph through the air at 35,000 with wifi sipping on a coke, as compared to by a car, something is wrong. And you people are hell bent on keeping that the status quo. Good job.
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Old 07-27-2011, 05:55 AM
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With razor-thin profit margins and gov't regulation that inhibits airlines' bottom line significantly, I don't blame them. Add in $100+/barrel oil prices, and you've got an industry that's barely getting by.

I don't think Congress will be able to recoup any of this...because various airlines did different things when the FAA continuation lapsed...there was no guidance. Congress is simply too consumed with the debt debate to do anything else for now.

Is Congress authorized to set airfare prices like they did before deregulation? No...this is simply grandstanding for constituents, but nothing will come of it.
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Old 07-27-2011, 06:06 AM
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Hopefully the airlines will tell congress: "Shut up and mind your own damned business... and speaking of which, have you done your job yet and passed a budget?"
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Old 07-27-2011, 06:52 AM
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Well the one group that CERTAINLY doesn't deserve the money is the government. If they can't get their big boy and girl pants on and figure out how to pass an extension, then there should be a consequence.... lost revenue.
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Old 07-27-2011, 07:13 AM
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Originally Posted by tsquare View Post
Hopefully the airlines will tell congress: "Shut up and mind your own damned business... and speaking of which, have you done your job yet and passed a budget?"
Well said!!
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Old 07-27-2011, 08:10 AM
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I have to say it makes me sick to hear anyone whine about a ticket that doesn't even cost more than last week and why, because someone made an extra couple of dollars! Is congress going to give us a bailout the next time we fall short like the banking industry or the auto industry? Please NO PILOT should be siding with this BS. Those tickets could stand to go up another 20% then maybe we could provide those meals eveyone is so inflammed about not getting or afford to finally upgrade some of the 30 yr old fleets. Absolutely amazing
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Old 07-27-2011, 08:32 AM
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If I started receiving checks and taxes were not already taken out then that's more money for me. But at the end of the year I will still owe the taxes. I better have put that money away.

So will the airlines still be required to pay the taxes even if the government doesn't collect them right now.

Just curious, I don't know and I frankly only care for a moment.
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Old 07-27-2011, 08:46 AM
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The politicos have a point; the ATA for *years* has said federal ticket taxes artificially raise fares and dampen demand, and lobbied to have those taxes (which are passed through to passengers) removed. The taxes go away, albeit temporarily, and the airlines raise fares to make up that difference.

Like it or not, these actions do run counter to ATA's arguments regarding ticket taxes and prove that ticket taxes don't impact demand...

That said, dumbass politicians have nobody to blame but themselves for AATF contributions going away (albeit temporarily) and yes, it is political grandstanding at its finest.
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Old 07-27-2011, 09:08 AM
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This is a micro example. If the bill is not passed soon the ticket prices will begin to fall. Look at alaska and virgin. The pressure from alaska forced virgin to remove the price increase on routes they compete on. Over time if allowed to continue without taxes the airlines will feel pressure to fill the seats and will begin to lower the prices to compete.

Over an extreme period(years) the extra pricing power would allow airlines to lower prices(good for consumers) and grow thier product to more people(good for employees and customers). If they dont new entrants would fill the gap. Again good for customers and people without jobs.

You can not use 2 days as an example thats is crazy.
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