FAA Shutdown: Which Airlines Are Cashing In And Which Are Spreading The Love (POLL)

Posted Jul 24th 2011 10:45 AM

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In case you didn't know, the FAA was forced to partially shutdown at midnight on Friday after Congress failed to resolve a dispute over the agency's funding.

It's been estimated that the shutdown will cost the government $200 million per week in lost revenue from airline ticket taxes. CBS News reports that the uncollected tax will come out to roughly $61 per domestic ticket.

As Gadling reported on Saturday, there were a few airlines who were "treating" their customers to tax breaks, including Virgin America, who refused to increase fares as a result and has since launched an "Evade Taxes. Take Flight." sale.

Airlinereporter.com is also reporting that Alaska Airlines, Spirit Airlines, and Frontier Airlines are all sharing the love with their customers.

On the greedy side, American, United, Continental, Delta, US Airways, Southwest, AirTran and JetBlue have all raised fares to varying degrees, the Associated Press reports. Most of the increases hovered around 7.5 percent.

Southwest and AirTran have increased fares by $4-each way to offset industry pressures. Southwest rep Brad Hawkins told Airlinereporter.com: "Our current ticket prices will remain the same (Customers will not see an increase in fares), as the 7.5% excise tax will not be collected. These decisions were made in light of the recent industry change in aviation tax collections, and we made a business decisions to remain competitive in these economically challenging times."

The moral of the story? In the next few days (if not weeks) think before you buy a plane ticket.
Should airlines share the love?
No, they're desperate for money and should use it to their advantage.984 (9.5%)
Yes, they're so greedy and I'm sick of it!9361 (90.5%)



Filed Under: Air Travel, News

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JRButler

My brother works for one of those contracted FAA companies and now he plus 4000+ people are out of work. There needs to be some decisions made ASAP so innocent people like my brother are not affected.

July 26 2011 at 8:12 PM Report abuse rate up rate down Reply
traviscapt2001

time for the government to get back in the airline industry.. at least partly.. fair rates no frills and fair pay for all hard working employees!!

July 25 2011 at 7:40 PM Report abuse rate up rate down Reply
Bill

On the greedy side, American, United, Continental, Delta, US Airways, Southwest, AirTran and JetBlue have all raised fares to varying degrees,

So they did not pay taxes and yet had the gall to raise rates? I will NEVER fly with any of them again, even if it means I have to drive. Take note America, these are the scum of the industry.

July 25 2011 at 12:40 PM Report abuse +1 rate up rate down Reply
1 reply to Bill's comment
mikelarys

Do you really think anyone believes you? I'm sure you're going to take a car cross country. Loser.

July 25 2011 at 1:24 PM Report abuse -1 rate up rate down Reply
dnflyme

The airlines are all gfreedy bas**ds. The fderal gov't needs to jump in and force these jikoers to play fair! To those airlines that don't take advantage of their passengers, accolades. The rest of them - YOU ARE A DISGRACE. Maybe the american public needs to start boycotting the sirlines taht are nickel and diming evryonbe and fly the ones that still treat passenegrs with some respect. (Jet Blue, Air Tran & Southwest.) Maybe if the others start get5t5ing ghit in the pocketbook, they will stop some of the siliness. (I used to fly Delta ever week for work, now I avoid tem like the plague. Rediculous charges and LOUSY SERVICE, both on teh ground and in the air!)

July 25 2011 at 12:17 PM Report abuse rate up rate down Reply
lbossardet

If the FAA stops working completely, air transport traffic comes to a complete halt, puting everyone in air transport out of work. Doesn't sound like a well thought out plan to me!

July 24 2011 at 9:27 PM Report abuse rate up rate down Reply
1 reply to lbossardet's comment
kendall

Air traffic controllers are considered essential workers & will continue to work, and be paid. So airports will operate.

July 25 2011 at 2:30 AM Report abuse rate up rate down Reply
Aunt Carol

One republican congressman is holding up the vote on this funding because he wants the wording on all union right to be taken out of the bill. FYI Bush was advised that our economy was in trouble many times in 2007, he sat on his dumb a** hoping it wouldn't happen big on his watch and did nothing. You expect Obama to fix this mess faster then Bush let it slide. This is the real world and it doen't happen. I hope we never go back to the days of republicans in charge of anything because they are incapable of leading and doing what is right for our country and our citizens. This FAA bill which has been held up because of union rights is a clear example of that. One republican senator can shut down the FAA....that is not leadership! This is play ball my way or I will take my ball and leave. The republican are acting worse than children and should be treated as such. Getting a few dollars saving on a ticket might seem important to you but it just makes the debt worse....and the republican are holding that ransom too. No body win and that is the way the dumb a** republican want it to win an election that is more than a year away. disgraceful!

July 24 2011 at 9:21 PM Report abuse -2 rate up rate down Reply
3 replies to Aunt Carol's comment
tandjdorsey

See what happens when the government stops just one small piece of regulation/taxation etc.? A business thrives.....people flock and the economy grows...proof that big government kills business.

July 24 2011 at 8:56 PM Report abuse +4 rate up rate down Reply
1 reply to tandjdorsey's comment
labbadabba

No, the economy doesn't thrive, that particular business does, but if that business isn't paying any taxes how exactly does that help our economy?

July 25 2011 at 9:54 AM Report abuse -1 rate up rate down Reply
1 reply to labbadabba's comment
badhog8

it puts that money back in to the economy,

July 25 2011 at 1:27 PM Report abuse +1 rate up rate down
trvlnbottm

The tax is still valid even if non-essential FAA people aren't working, so some sort of stop gap executive order should have them continue to collect taxes! That would be logical.

July 24 2011 at 8:42 PM Report abuse rate up rate down Reply
Robert

I hope the government movse to collect these monies after their FAA mess is fixed. What a country we live in.

July 24 2011 at 8:39 PM Report abuse -1 rate up rate down Reply
tarzansjane40

I can not believe that people are still so ignorant they would even write a comment about Bush. Give it up. Everything rises and falls on leadership. Democrats had everything for two years and double the national debt and put unemployment through the roof. So just shut up. You are making yourselves look stupid.

July 24 2011 at 8:34 PM Report abuse +1 rate up rate down Reply
1 reply to tarzansjane40's comment
Dan

Hey Tarzan please show your numbers on your misguided statement the Dept when Obama took office was over 10 trillion and now is at a little over 14 trillion and of that 14 trillion 1 trillion was for Tarp which Im sure you know came about under Bush. You might want to go back to school if those numbers say double.

July 25 2011 at 10:12 AM Report abuse -2 rate up rate down Reply

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