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Q: Breakdown of International Airfare Taxes ( Answered 4 out of 5 stars,   2 Comments )
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Subject: Breakdown of International Airfare Taxes
Category: Reference, Education and News > Consumer Information
Asked by: bostonteaparty-ga
List Price: $25.00
Posted: 21 Mar 2006 21:34 PST
Expires: 20 Apr 2006 22:34 PDT
Question ID: 710377
I have recently decided to take a trip to Europe with my girlfriend.
We took a trip last year as well and were plesantly surprised to find
extremely low rates that trip cost 400$ total from SFO to Paris, with
one stop in Detroit. 300$ of that total was for the ticket and 100$
was for taxes/fees. We flew Northwest Airlines. This year was nearly
the same, EXCEPT that the taxes had more than doubled between then
(March 2005) and the planned date of this next trip (October 2006). We
were planning on flying from San Francisco International Airport to
London, Heathrow Airport (non-stop). Then returning from Vienna,
Austria back to SFO via Heathrow (one stop). We were planning on
taking British Airways. The trip came to 419$ per person with 230$ in
taxes/fees (we have not yet  booked it). I believe this information
should be sufficient background about the trip, as I would prefer not
to disclose our exact planned itinerary.

What I want is an exact or near exact breakdown of what fees and taxes
comprise the 230$. I have researched this a little and this is what I
have found:

1. http://www.britishairways.com/travel/ba6.jsp/seccharge/public/en_us
2. http://www.britishairways.com/travel/offerus067tc/public/en_us
3. http://www.smartertravel.com/air/resource.php?id=14164

From this first link (see below) I know that there is a 51$ surcharge
for fuel which leaves approximately 180$ left unexplained. That first
link mentions government specific taxes and fees. Those are what I  am
interested in. The 2nd link goes so far as to say that for an economy
seat on their 200$ deal there may be up to 100$ worth of taxes. That
is clearly not my same trip but that gives some indication of where
the remaining 180$ is coming from. However I want a breakdown of that
generically labeled government taxes/fees. The 3rd link mentions that
government taxes and fees can be up to 200$ for a round trip
international flight, but does not break down what those fees are. On
that same page though it does break down a domestic flight. I would
like that kind of break down for my flight.

Either way I will book the flight, but I would feel much better if I
knew why I'm paying so much more this year and where exactly that
money is going. The more detail the more my mind will be at peace.

I'll chip in a decent tip if you also let me know what
legislation/politicians were specifically responsible for  these
changes.

Goodluck and happy researching.

Cheers.

Request for Question Clarification by answerfinder-ga on 22 Mar 2006 04:03 PST
Dear bostonteaparty-ga,

I?ve managed to calculate approximately how the $180 is made up,
however, there are a couple of instances where the amount is not
confirmed and whether they are applicable.
Have a look at my proposed answer and see what you think. I think the
largest chunk of the taxes is because of your stop-over at Heathrow.

SF to London:
US Ticket Tax: 7.5% (not sure whether this is applied)
Security fee: $2.50
Passenger Facility Charges (airport improvements): up to $18.00 may
apply depending upon the itinerary chosen.
US International Departure Tax: $14.10 (inflation linked)

London:
Air Passenger Duty: £40 (not sure if it may be eligible to reduced rate)

Austria to London:
Vienna Passenger Service Charge and Airport Tax: approximately $19
Heathrow Air Passenger Duty: £10 (not sure if it may be eligible to reduced rate)

London to SF:
Heathrow Air Passenger Duty: £40 (not sure if it may be eligible to reduced rate)

SF:
US International Arrival Tax: $14.10 (inflation linked)
US Customs Fee: $5.00 
Immigration Fee: $7.00 


All this adds up to around $180 depending on which sums are included.

Sources:

Airlines Reporting Corporation - guide to taxes
US Ticket Tax: 7.5% 
Security Fee: $2.50 
Passenger Facility Charges (airport improvements): up to $18.00 may apply
depending upon the itinerary chosen.
US International Departure Tax: This $14.10 (inflation linked)
US International Arrival Tax: $14.10 (inflation linked)
US Customs Fee: $5.00 
Immigration Fee: $7.00 
http://www.arccorp.com/forms/pp/iah/current/iah7_0.pdf


UK guide to Air Passenger Duty
 
?What is Air Passenger Duty?
APD is an excise duty which is charged on the carriage, from a UK
airport, of chargeable passengers on chargeable aircraft.
There are currently four rates of duty:

Standard rates

    * £10 for specified European destinations, and
    * £40 for all other destinations

Reduced rates

    * £5 for specified European destinations, and
    * £20 for all other destinations
http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageExcise_InfoGuides&propertyType=document&id=HMCE_CL_001170

Very detailed information
http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageExcise_ShowContent&id=HMCE_CL_000505&propertyType=document


Austria - limited to English language sites only (note this
information is out of date as it is quoted in Austrian Schillings)
Airport Taxes: All international airports in Austria charge airport
tax on arrival, however this levy is written into the ticket. There is
a passenger service charge of 60 ATS on departure, and the airport tax
is 140 ATS
http://www.travel-library.com/airports/europe/austria/vienna/vienna_international_airport.html

Airport taxes are charged at all Austrian airports on arrival. This
tax, however, is already in the cost of the ticket.

For international departures there is a Passenger Service Charge of
ATS 60. Airport taxes are as follows:
    * Vienna: ATS 160
    * Linz: ATS 150
    * Graz, Innsbruck, Lagenfurt and Salzburg: ATS 140
http://www.britain.tv/travel_austria.shtml


Let me know whether this is sufficient information to answer your question.

answerfinder-ga

Clarification of Question by bostonteaparty-ga on 22 Mar 2006 10:54 PST
Other than the fact that you didn't do the adding yourself (i.e. I had
to add it all up and then realize that the reduced rates do apply
since I will be travelling Economy Class) the answer to my basic
question was complete and satisfactory. After adding all the itemized
fees up (using the reduced rate carriage fees) the total came to ~181$
which as far as I'm concerned is spot on since currency rates easily
vary within that tolerance.

You didn't address to a great extent why this trip was so much more,
but hinted at it and gave good resources which lead to a very likely
reason. The reason seems to be a combination of the fuel surcharge and
the fees involved with travelling through Heathrow. Those add up to
about 137$. That would almost exactly cover the difference between
last years trip and this years, however that presumes that there was
no fee similar to the Heathrow one at Charles de Gaulle Airport in
Paris. Most likely there is a fee at de Gaulle which then would leave
some of the jump in taxes/fees unexplained, but that probably is due
to the rise in US government taxes.

So if you want to confirm that last fact, specifically what the fees
at Charles de Gaulle airport were last year and if US tax increases
accounted for the difference that would be worth a few extra bucks to
me in the form of a tip. But if it's too much work, I'm satisfied with
your answer and will still give you a tip.

Excuse my bluntness, I've never used this system before and am not
totally aware of the etiquette, so I'd rather be clear.

Thanks for the prompt response and if you decide the extra effort
isn't worth it, then I gladly accept your answer.

Cheers.
Answer  
Subject: Re: Breakdown of International Airfare Taxes
Answered By: answerfinder-ga on 23 Mar 2006 03:40 PST
Rated:4 out of 5 stars
 
Dear bostonteaparty-ga,

Thank you for your clarification, and there is no need to apologise
for fear of bluntness. It imperative that I fully understand your
needs. My task is to ensure you have 100% satisfaction with the answer
which I why I only posted it as a clarification request. I wanted to
make sure you were aware that I could not fully answer your question
with some of variables being unknown, and lack of information (partly
due to the language barrier) from a number of sources.

By way of an answer and I refer you to the above and this additional information.

I have first of all established that I have omitted one further charge
from Heathrow airport. There is an additional airport tax of a more
than £6.48 for each passenger (not sure what exchange rate you are
using). I could not establish the current rate but have seen figures
quoted at £7.10 and £8.35.

British Airport Authority - Regulations page.

?CAA Final Decision on Airport Charges
For the period 1 April 2003 to 31 March 2008 the maximum price per
passenger that BAA can charge will be:

*      Heathrow £6.48 in 2003/04 then increased by RPI +6.5% each year
*      Gatwick £4.32 in 2003/04 then increased by RPI in each year
*      Stansted £4.89 in 2003/04 then increased by RPI in each year.?

http://www.baa.co.uk/portal/controller/dispatcher.jsp?CiID=c59371e1c2d72010VgnVCM100000147e120a____&ChID=f6bb3de26aa32010VgnVCM100000147e120a____&Ct=B2C_CT_GENERAL&CtID=448c6a4c7f1b0010VgnVCM200000357e120a____&Ch=Regulation&ChPath=Home%5ECorporate%5EAbout+BAA%5EHow+we+Run+our+Business%5ERegulation&ChIDPath=caf397dc2eb12010VgnVCM100000147e120a____^2292ea0bb0022010VgnVCM100000147e120a____^446597dc2e
b12010VgnVCM100000147e120a____^34c2844f76a32010VgnVCM100000147e120a____^f6bb3de26aa32010VgnVCM100000147e120a____


The US taxes have been increased as follows:

May 2003, $13.20 to $13.40
http://www.arccorp.com/forms/pp/iah/May2003/iahsummary.pdf
January 2004 $13.40 to $13.70
http://www.arccorp.com/forms/tac/010404.pdf
January 2005 $13.70 to 14.10
http://www.arccorp.com/forms/tac/121904.pdf
2006 is $14.50 not $14.10 as stated in my clarification above.
http://www.arccorp.com/forms/pp/iah/current/iah7_0.pdf


Charles de Gaulle aiport has been a problem because of my lack of
French. This travel web site provides some information which appears
to be reliable. I have compared the information on their Heathrow page
with my research and it seems to be generally accurate.

International passenger service charge: ?9.93 
Civil aviation tax: ?6.66 
International airport tax: ?3.58 
Total tax $ for international arrival and departure: $19.77 

?Summary:   Taxes on international air passengers have increased 97%
in Paris since 1994, the 21st highest increase among all 52 surveyed
destinations and the third highest among the 18 surveyed destinations
in Europe.  This change can be attributed to the introduction of a new
international airport tax coupled with several increases to the
passenger service charge and the civil aviation tax.  The
international airport tax was introduced in 2000 at the rate of FF
16.00 to  finance fire services, bird strike prevention, and
environmental monitoring.  It was increased to FF 18.00 in 2001 and 
to  ?3.58 in 2002.  The international passenger service charge has
been increased several times from its base index level of FF 50.34,
most recently in March 2002 when it was increased from FF 59.00 to 
?9.93.  The civil aviation tax, formerly called the safety and
security charge, has been raised four times from its base index level
of FF 18.00.  The most recent increase occurred in 2002, when it was
raised from FF 39.00 to  ?6.66.  Tax  charges on international
arrivals and departures total approximately $20.00, the 25th highest
among all surveyed destinations and the sixth highest among the 18
European destinations.?
http://traveltax.msu.edu/barometer/paris.htm


Their Vienna page provides this information.

International passenger service charge:  ?11.63  	
Passenger terminal use charge: 	?10.33 	
International passenger security charge: 	?4.36 
Total tax $ for international arrival and departure: 	$25.80

?Vienna collects approximately $26.00 in air passenger taxes, the 17th
highest total overall and the third highest among those destinations
in Europe.  The major change to this sector occurred in 2000, when the
international passenger service charge was increased from ATS 140.00
to ATS 160.00 [...] The passenger terminal use charge was converted to
the Euro in 2002.?
http://www.traveltax.msu.edu/barometer/vienna.htm


So, it still seems that three visits to Heathrow seems to account for
the large increase.

I hope this answers your question. If it does not, or the answer is
unclear, then please ask for clarification of this research before
rating the answer. I shall respond to the clarification request as
soon as I receive it.
Thank you
answerfinder
bostonteaparty-ga rated this answer:4 out of 5 stars and gave an additional tip of: $5.00
Overall your response time was excellent and I give you high marks for
that. Also you gave an enormous amount of information about the answer
to the question and that was fascinating. I think the only reason I
wouldn't give you 5 stars is that the information lacked conciseness.
In other words you answered my question 100% but I had to really read
the answer over and investigate the links you gave to fully understand
it. It would have been nice to just have gotten a few lines that
explained it all and then the rest as sort of an appendix or
bibliography to that concise answer.

Overall though I want to emphasize that you did a stellar job and I am
very satisfied with the answer.
Cheers.

Comments  
Subject: Re: Breakdown of International Airfare Taxes
From: rainbow-ga on 21 Mar 2006 22:39 PST
 
This may be helpful:

http://www.thestreet.com/_more/funds/goodlifegillin/10186515_2.html

Rainbow~
Subject: Re: Breakdown of International Airfare Taxes
From: answerfinder-ga on 24 Mar 2006 00:20 PST
 
Dear bostonteaparty-ga,
Thank your for the tip and the constructive feedback. I hope you enjoy your trip.
answerfinder-ga

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