Tax Holiday didn’t intefere with capacity planning
The Cranky Flier wrote on Monday that the “tax holiday” on airport taxes caused by Congress’ inaction on funding the FAA might have caused capacity planning problems for airlines and that it was therefore sensible that airlines would raise fares to close that gap to maintain predictable demand.
What the hell?
In addition to sounding like an apologist for airlines, that post may well ought to be a candidate for his own Cranky Jackass award.
When reading his blog entry, one gets the sense that this brief pause in taxes would have sent airlines into a major tizzy when it comes to capacity planning for the winter season. I assure that that was not a fear and that airlines are quite a bit more flexible than that.
It was obvious that the brief elimination of those taxes was just that: brief. That meant that for a brief period in time, a rise in demand would not have overwhelmed their aircraft or flights in any major way. More to the point, while airline demand is price sensitive, it isn’t *that* price sensitive. If it were, airlines would be able to fill aircraft 100% by offering just a week or two of sales going into the next season. And it wouldn’t take a big sale.
But we know that airlines don’t experience such opportunities and to suggest otherwise and justify what was, at best, a greedy move is just wrong.
While I do not like the move on the part of the airlines, I’ll also say that that they were free to do it and they’re also free to experience the negative press from doing so. I don’t think they should “hold it” and give it back to the FAA either. This is business, they made their move and it wasn’t illegal or sneaky but it was greedy.
The point made by more than a few Congresscritters that airlines have been grousing about taxes for years saying they depressed demand and now they’re enjoying the largess of the absence of those taxes was also valid. But airlines like to bitch about those things that directly affect their demand and never seem to pound on the table over taxes that affect travel.
You’ll never hear an airline scream about the taxes on rental cars and hotel rooms imposed by municipalities and states. And, yet, those taxes are far more egregious in many cases than any airline tax.
Taxes are necessary and they are what pay for our infrastructure. Complaining about them doesn’t make them any less necessary.
But back to my original point: Cranky’s argument is disingenuous at best and far beneath him, in my humble opinion, compared to the body of opinion he’s shared over the past many years.
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