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Q: airline ticket surcharges ( Answered,   0 Comments )
Question  
Subject: airline ticket surcharges
Category: Miscellaneous
Asked by: ambo03-ga
List Price: $10.00
Posted: 27 Feb 2003 21:22 PST
Expires: 29 Mar 2003 21:22 PST
Question ID: 168181
Why did airlines impose ticket surcharges after 9/11?
Answer  
Subject: Re: airline ticket surcharges
Answered By: clouseau-ga on 27 Feb 2003 21:46 PST
 
Hello ambo03,

Thank you for your question. 

The FAA talks about the Airport Security Bill at this page:
http://www.cami.jccbi.gov/AAM-400A/FASMB/FAS200104/secure.htm

"Aviation Bill Defines New Era of Security By FAA Headquarters
Intercom


The airport security bill signed by President Bush Nov. 19 transforms
the Federal Aviation Administration and its missions in a number of
significant ways. The number of security personnel, equipment, and
inspections will be increased over the next year. Background check
requirements, airfield security, and cockpit security all are expanded
in the bill. Airline ticket surcharges will provide some of the
funding for the increased security, as will airline assessments..."

They continue with a list of increased costs for security since the
9-11 tragedy and then note:

"...Passenger Security Charge 

Federal airport security services will be financed through a passenger
fee of $2.50 per enplanement, with a maximum charge of $5.00 per
one-way trip.

For Fiscal Years 2002-2004, airlines will be assessed a fee equivalent
to the annual amount the airlines spent on passenger screening
services prior to Sept. 11, 2001. Beginning in FY 2005, the TSC will
assess the fee on air carriers based on market share and other
measures..."


Some of the services and security implemented since 9-11 that require
the ticket surcharges are:

-Checked baggage is screened by explosive detection systems. 

-Persons, vehicles, and other equipment are now screened or inspected
before entry into a secured area.

-Computer-Assisted Passenger Prescreening System, CAPPS, is being
implemented to screen all passengers.

-Airport employees that have access to a secured area undergo a
background investigation, including a criminal history records check
and a review of other available law enforcement databases and records.

-Background checks are now required for non- US residents seeking
flying lessons in aircraft weighing more than 12,500 pounds.

-Law enforcement presence around airport perimeters was increased. 

-The FAA plans to buy billions of dollars worth of explosives
detection systems, like the InVision system, to achieve 100 percent
screening of checked-in bags.

-Commercial aircraft have had cockpit doors and locks that cannot be
opened by anyone other than the flight crew, with no in-flight access
except for entrance or exit by authorized persons.

-Federal Air Marshals have been deployed on every passenger flight.

-Flight crews have received anti-hijack training. Airline ticket and
curbside agents have received terrorist awareness training.

The increase in costs for these services and security measures
required ticket surcharges to fund our protection.


Search Strategy:

Airline Ticket Surcharge +security

I trust my research has provided you with the reasoning behind these
surcharges. If a link above should fail to work or anything require
further explanation or research, please do post a Request for
Clarification prior to rating the answer and closing the question and
I will be pleased to assist further.

Regards,

-=clouseau=-

Request for Answer Clarification by ambo03-ga on 27 Feb 2003 22:31 PST
That was a great answer.  My further questions: 1)were these charges
were imposed world-wide or only on American flag carriers.  For
example, do passangers on Airnuigini pay the surcharge? and 2) are any
of these costs being used to pay for the reconstruction of the World
Trade Towers?

Clarification of Answer by clouseau-ga on 27 Feb 2003 22:59 PST
Hello again,

The airport security bill is a US / FAA bill and surcharges passengers
on all flights within the US or originating from a US airport. It has
no jurisdiction on originating flights outside the US. Surcharges for
security, whether initiated before or after 9-11, would vary by
country and their investment in security for their airports as well as
increased costs since 9-11.

For example, the Victoria Times-Colonist has an article here that
explains the situation in Canada quite well:
http://traveltax.msu.edu/news/Stories/victoria3.htm

The sky-high hidden costs of air travel

By Jody Paterson, the Times-Colonist
Copyright 2002 CanWest Global Communications Corp.
Article date: June 23, 2002
 
"...What gives? Blame it on Sept. 11, jet-fuel anxiety, a fully
privatized air-navigation service and cautious insurers, all of which
have become costly factors in air travel in the last year. Here's why
you're paying more:

NavCan surcharge: The private company that has managed Canada's
air-traffic control, weather briefings and flight information since
the federal government got out of the business three years ago charges
varying fees on every ticket to cover the cost of the service and
allow for "reasonable and prudent financial reserves."

Fees are based on the weight of the plane and distance travelled. They
rose six per cent in January to help cover a $145-million shortfall
NavCan was forecasting for 2001-02 based on the downturn in air travel
after Sept. 11.

Air Travellers' Security Tax: Another Sept. 11 addition, this tax is
charged by the federal government to fund safety improvements at
Canadian airports over the next five years. Travellers are taxed $24
round-trip on any domestic flight, and $24 each way on international
flights....

...Airline surcharges: These vary according to the airline. Air
Canada, for instance, has tacked on an extra $15 each way for most of
the past year to protect itself from the "volatility of jet-fuel
prices."

Air Canada and WestJet also charge $3 per ticket to cover higher
insurance costs that resulted from post-Sept. 11 jitters among
insurers.

War Risk Indemnity Fee: This $6 fee on every ticket was instituted by
the federal government last fall, again because of insurance concerns
since Sept. 11.

Airport Improvement Fees: Sometimes you'll pay these separately in the
airport, but a few airports choose to have them incorporated into the
ticket price. They range from $5 to $15 depending on your destination
and point of departure...

...Travel agency fees: Using an agency didn't cost travellers directly
up until a few months ago, when three North American airlines -- Air
Canada, American Airlines and Northwest Airlines -- started a trend by
refusing to absorb the costs. Agencies had to start collecting their
pay from customers. Charges vary, but are in the range of $35 to $40 a
ticket..."

So this explains the rate hikes and surcharges for Canada. I'm sure
you will find most countries have similar policies, but they will
indeed vary by country.

As far as I can tell, none of the surcharges for airline tickets are
targeted for reconstruction of the World Trade Center, but solely for
increased security, equipment, background checks and the measures
delineated above.

Best regards,

-=clouseau=-
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