Commercial Aviation: Consumers Could Benefit from Better Information about Airline-imposed Fees and Refundability of Government-Imposed Taxes and Fees
DIANE Publishing, 2010 - 50 pages
To supplement fare revenues, airlines are increasingly charging fees for optional passenger services, notably for checked baggage, for which separate charges did not previously exist. While air fares are subject to a 7.5% excise tax that funds the Airport and Airway Trust Fund, which helps fund the FAA, many new optional fees are not. This report addresses: (1) the nature, relationship to cost, and disclosure of airline fees; (2) the potential impact of such fees on the Airport and Airway Trust Fund, (3) checked and mishandled baggage issues; and (4) the process, if any, for refunding gov┐t.-imposed taxes and fees when passengers do not use non-refundable tickets. Includes recommendations. Charts and tables.
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