Refunding taxes

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Viewing 15 posts - 31 through 45 (of 71 total)

  • MartynSinclair
    Participant

    The nasty APD + taxes etc are not destined for the airlines. Just becasue the passenger doesnt fly and the money is only passed over on the actual number of passengers who fly, it seems that the system is flawed.

    No wonder so many of the airlines are so strict on their boarding cut off times. There must be a high percentage of no shows/late arrivals where the add on charges are not refunded and kept by the airlines.

    Does anyone know if the airlines are required to publish the figures for the number of tickets sold / number of refunded tickets / number of no shows.

    Without that data its all presumption as to exactly how much the airline is benefiting from a payment not intended for their benefit.


    craigwatson
    Participant

    just took a look on BA.com and even for a 100% non refundable ticket, you get all the taxes back minus the admin fee which is between £15-40 depending on the method you choose to cancel.


    craigwatson
    Participant

    airlines are so strict on cut off times to keep punctuality good, and due to the fact that they overbook (or try to) every flight by up to 20%. so if you are late they charge (although they dont always) a change fee to put you on the next flight, plus they didnt have to comp someone who otherwise would have been bumped from the flight.

    Edited to add: actually some airlines would make you purchase a whole new ticket if you missed the cut off, thereby doubling their revenue, good trick IMO.


    Bucksnet
    Participant

    The admin free should be zero as the process can be automated. The airlines rely on passengers not bothering, or not even realising they can claim.


    craigwatson
    Participant

    Agreed, the charge should be lower, as to whether it should be zero, im not sure. I am unsure whether the card issuers charge a fee to refund monies back, does anyone know?

    Even if its automated, and the issuers dont charge the airline a fee i think a small charge is reasonable as the still have to develop and maintain the software to automate it in the first place. after all its not the airlines fault you want to cancel, so it in no way should cost them money.


    NTarrant
    Participant

    Card companies make a charge on refunds. The amount will depend on their agreement. Therefore that charge has to be paid and it does fall on the punter to pay it, as Craigwatson says its not the airlines fault you want to cancel


    Bucksnet
    Participant

    The software is already in place to remit funds to HMRC and BAA etc, so it should be quite easy to do automated refunds.

    I have had various refunds to my credit card over the years and there has never been any charge.


    MartynSinclair
    Participant

    The airlines should not be benefiting from a payment / tax /levy that was never intended part of their business. Collection from the pax and delivery to the relevant authorities in a function that they agreed to undertake. Keeping what isnt paid is a consequnce of the system that should be corrected to benefit either the pax who paid or the organization that it was due to go to.

    The refund issue whilst important, is a seperate discussion.


    Swissdiver
    Participant

    … that is, Martyn, the topic of this thread :-). How to get a fuel surcharge reimbursed since it was initially accounted as tax in the e-ticket…


    AMcWhirter
    Participant

    Are you sure BA accounted a fuel surcharge as “tax.” Check Martyn’s post above, and the taxes/fees/charges breakdown on ba.com, and a fuel surcharge is listed under “fees and surcharges.”


    Swissdiver
    Participant

    LondonCity: other airlines exist 🙂 It was KLM…


    NTarrant
    Participant

    Martyn the airlines don’t “agree” to collect taxes, they are required by law.

    Bucksnest whilst there is no charge to you or I as a passenger for a refund to our cards, the airlines like other businesses will pay a charge to the credit card company. This is one of the reasons they will make an admin charge as that fee has to be paid and of course the passenger pays that fee in the charge made.


    AMcWhirter
    Participant

    Swissdiver – KLM’s definition might differ (because of Dutch law) but here in the UK our CAA states that a “fuel surcharge is not a government-imposed tax.”

    Refer to “Taxes, fees and charges added to air fares” http://www.caa.co.uk.


    SimonS1
    Participant

    Martynsinclair. I don’t see it as a big deal. If you decide not to travel then you are entitled to a refund of taxes – that is not in doubt. However there is a cost to the airline in processing refunds as they have to employ people to deal with it. Wages plus other costs per hour divided by the amount of time it takes to find your booking, locate your payment details etc.

    Answer the airline deducts its costs and gives you any difference back. Quite reasonable, why should they be out of pocket.

    The alternative I suppose is for all taxes income to be paid to the government and then you apply directly for a refund. Again there would be a handling cost (why should the taxpayer incur costs to deal with this etc etc).

    I suppose the final solution would be a 1970s type model where you pay at the airport. Pay only if you are travelling, no refunds needed, but then most business travellers would object as it might involve queueing for more than 3 seconds.

    As I said before, if you are the type of person who is afflicted by misfortune (and there are some people on this forum who seem to be more unfortunate than most) then better to take out travel insurance.


    Bucksnet
    Participant

    Maybe there should be no admin charge if you inform the airline in advance instead of just not turning up on the day, so they can resell the seat.

Viewing 15 posts - 31 through 45 (of 71 total)
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