> "The fee is collected by air carriers from passengers at the time air transportation is purchased," according to TSA. "Air carriers then remit the fees to TSA."
(From https://thepointsguy.com/guide/taxes-and-fees-airline-award-...)
The cost to the customer is usually more than the price of the flight. Maybe they are late to another flight and since that will be their "fault" they will not be refunded. Maybe they miss a job interview, etc. Life isn't fair and what is owed is owed.
In fact, they have such great legal and accounting armies that I'm sure they can claw back those taxes from the IRS.
I am anti-airline here, I am loving where we are going with these things. But I don't agree with this: many delays happen precisely because they are doing their jobs right. This could be weather-related delays, observed mechanical issues, unexpected crew illnesses (note the plural), etc. And over the course of a day, these issues compound.
I think the government should refund the airlines the government taxes/fees for canceled/delayed flights due to weather or mechanical issues at least.
How often do you think airlines are filing taxes?
> The refunds must include all government-imposed taxes and fees and airline-imposed fees, regardless of whether the taxes or fees are refundable to airlines.
This is the provision I am responding to. If the airlines must refund the full value to the consumer, I do not see why the government should not also be refunding the airlines.
And I strongly contest the idea that any delay is a problem the airline themselves created. In fact, I believe the assertion is absolutely dead wrong. There are many externalities to on-time arrivals and departures that airlines cannot control. How could it possibly be an airline's fault if an airport hasn't cleared its runways of ice, or if a tornado is within 5 miles of the landing strip?
Of course I also believe airlines will disingenously attribute delayed departures to these externalities if able to, even if they are actually at fault, so I'm not sure what the "right" solution is here.
This is the comment from the OP that motivated me to comment. I think that is a definitively incorrect conclusion.
All of these costs should be part of doing business. You do not keep a dime form customers if they did not receive service, even if by an act of God.
If your business fails, then it failed. If others succeeded, then they were better then you or you got unlucky, and it's no one's job to make you lucky.
How often do you see businesses screwing over customers just because they can? You arrive late to a flight due to unforeseen circumstances, and the airline will not refund you, no matter what you do. Why should you accept this from them?
I feel very strongly about this because I have experienced how predatory these companies are. Last time I was on vacation, there was a natural disaster, and I could have let them keep my money just to support them. But after I landed there (having paid for the stay in full), I was presented with a resort fee of close to $500. They know I had nowhere else to go, so they took advantage. Well, it felt really great clawing all that money back after spending 2 days there. This feeling, they feel this every day when screwing customers.
They've failed to manage supplier risk.
It's my understanding that taxes aren't collected until well after the flight (service) has been fulfilled, and cannot be collected when it has not.
Sounds complicated.
The due date for submitting the previous quarter’s taxes will generally be late enough that the merchant can wait until most items or services sold at the end of the previous quarter have been delivered or performed.
If you have to refund a customer after you have submitted your taxes you can take the amount of tax that was included in the refund as a credit the next time you file with with the government.
Whether or not the taxes or fees are eligible for a refund to the airline (or don't have to be paid; payment of those will often be delayed) depends on the specific law applicable to each tax or fee, but with the new rule, that's the airline’s issue—they have to refund it to the customer whether or not the airline is still on the hook for it.
Always blows my mind that companies can take money _instantly_ from my credit card yet require 3-7 business days to refund it.
I know what you're doing you greedy fucks.
They are far more cautious about giving leeway on the conduct of the consumer than that of the merchant.
3-7 business days gives the merchant’s bank long enough to debit the funds, ensure they exist, then send them back, with a buffer for errors.
The bad news is that it will be decades before most major payment systems move to it.
I haven’t worked in fintech long enough to tell you why it was modeled to take so long, but I would hazard a guess that it’s because the primary method of moving money was paper checks and physical card impressions until the last couple decades.
From https://www.transportation.gov/briefing-room/biden-harris-ad... (linked in TFA):
The final rule improves the passenger experience by requiring refunds to be:
Automatic: Airlines must automatically issue refunds without passengers having to explicitly request them or jump through hoops.
Prompt: Airlines and ticket agents must issue refunds within seven business days of refunds becoming due for credit card purchases and 20 calendar days for other payment methods.
Cash or original form of payment: Airlines and ticket agents must provide refunds in cash or whatever original payment method the individual used to make the purchase, such as credit card or airline miles. Airlines may not substitute vouchers, travel credits, or other forms of compensation unless the passenger affirmatively chooses to accept alternative compensation.
Full amount: Airlines and ticket agents must provide full refunds of the ticket purchase price, minus the value of any portion of transportation already used. The refunds must include all government-imposed taxes and fees and airline-imposed fees, regardless of whether the taxes or fees are refundable to airlines.