Flight taxes experts?

**Nick** · 17-Apr-2010, 10:53 AM

So who out there is a ticketing whiz with understanding all the taxes?

I find them one of the stranger things in air travel. Some places (such as UK) base the tax on class of travel and distance of travel, some have a set fee (such as Melbourne), some don't get included in the ticket and must be paid at the actual airport (some of this still exists I assume?).

Since i'm moving to SIN, i've been most curious at the taxes when I look at making weeking bookings to travel places in Asia.

For example, on Tiger from SIN-SGN, the fare is SGD$50, but the taxes/fees are SGD$55 (!!). Jetstar Asia have their fare at $81.95, and taxes at $28... so how can that be so? Does the tax vary with ticket price? Is Tiger's more full of "fees" than actual "taxes"? You click the breakdown button on Tiger site and it just pops up and says again "taxes/fees/charges sgd$55". Most of the taxes ex SIN seem somewhat excessive to me... especially if you are departing from a budget terminal.

I always liked the US model, where domestic taxes aren't levied to airline staff. How do you levy a tax on a free ticket? You don't. How do you levy it on a reduced rate ticket.... well in the US you don't, rest of world seems to be at the full prevailing rate, which really is a shame

**aazed** · 22-Apr-2010, 12:55 PM

Originally Posted by Nick

So who out there is a ticketing whiz with understanding all the taxes? ... I always liked the US model, where domestic taxes aren't levied to airline staff. How do you levy a tax on a free ticket? You don't. How do you levy it on a reduced rate ticket.... well in the US you don't, rest of world seems to be at the full prevailing rate, which really is a shame

First, let me clarify that US taxes, in general, do not exempt staff travel. Some do, but most do not apply to free tickets and since most US employees are not assessed service charges on their own airline's domestic flights, taxes do not apply. You would collect taxes on reduced fare (e.g., ZED or ID90) tickets because you're collecting a fare amount. There are a few international taxes that don't apply to free travel, travel specifically by airline employees, travel by airline employees on business, etc.

Originally Posted by Nick

For example, on Tiger from SIN-SGN, the fare is SGD$50, but the taxes/fees are SGD$55 (!!). Jetstar Asia have their fare at $81.95, and taxes at $28... so how can that be so? Does the tax vary with ticket price? Is Tiger's more full of "fees" than actual "taxes"? You click the breakdown button on Tiger site and it just pops up and says again "taxes/fees/charges sgd$55". Most of the taxes ex SIN seem somewhat excessive to me... especially if you are departing from a budget terminal.

There are three taxes that apply ex SIN, they are the Passenger Service Charge (SG1), the Passenger Security Service Charge (OO), and the Aviation Levy (OP). The rules and amount applicable vary for each.

SG1 = SGD13.90 pretty much, applies to every traveler type, except airline crew on duty/positioning
OO = SGD8.00, same application
OP = ranges from SGD2.20 to SGD6.10 depending on the transporting airline and also applies to pretty much everyone but crew.

On a SIN-HKG IDZM3R2, for example, the total tax would be SGD28. The same amount would apply to SIN-FRA IDZM8R2.

**mrs767er** · 22-Apr-2010, 03:58 PM

aazed, are you available for adoption?

**Nick** · 22-Apr-2010, 04:31 PM

Originally Posted by aazed

First, let me clarify that US taxes, in general, do not exempt staff travel. Some do, but most do not apply to free tickets and since most US employees are not assessed service charges on their own airline's domestic flights, taxes do not apply. You would collect taxes on reduced fare (e.g., ZED or ID90) tickets because you're collecting a fare amount. There are a few international taxes that don't apply to free travel, travel specifically by airline employees, travel by airline employees on business, etc.

Fair point. Unfortunately we get charged ZL on our own carrier, so we always get taxed. (Except on our yearly FOC ticket, where USA-HKG is $0 tax, but still get taxed from every other port even though there is no fare component).

What I find most interesting is we have ZEDs and these "oneworld" tickets, and yet both are charged at ZM level. The only benefit I can gather from the oneworld ticket is higher priority than ZED, but otherwise it costs the same and is less flexible. I would have thought that in one's own alliance a ZL deal could be struck or even a J ZED deal as we discussed in another thread, but what can you do. We have had the same issue at our own airline for years regarding upgrades... basically we can buy ZL J or Y tickets (refundable if downgraded), and we get a yearly FOC ticket that is confirmable (if seat in booking class) of 4 sectors in economy only. We have been trying for years to ask them to allow us to pay the upgrade fee at the counter if there is space, yet it is refused each time due to logistics reasons. Yet you can use asia miles to raise an MCO for the upgrade the day before, so no one can understand why it can't be done at the airport.

Anyways i'm off topic...

Originally Posted by aazed

There are three taxes that apply ex SIN, they are the Passenger Service Charge (SG1), the Passenger Security Service Charge (OO), and the Aviation Levy (OP). The rules and amount applicable vary for each.

SG1 = SGD13.90 pretty much, applies to every traveler type, except airline crew on duty/positioning
OO = SGD8.00, same application
OP = ranges from SGD2.20 to SGD6.10 depending on the transporting airline and also applies to pretty much everyone but crew.

On a SIN-HKG IDZM3R2, for example, the total tax would be SGD28. The same amount would apply to SIN-FRA IDZM8R2.

Very interesting. So when I go to tigerairways.com in SG and try to book something and it states "taxes and fees $50", I can be assured most of that is tiger fees that they refuse to offer a breakdown for. That would be illegal in Australia as a misleading fare... all taxes have to be accounted for and displayed, but I guess not in Singapore.

Thanks very much for your informative reply!

**aazed** · 23-Apr-2010, 09:23 PM

Originally Posted by Nick

Very interesting. So when I go to tigerairways.com in SG and try to book something and it states "taxes and fees $50", I can be assured most of that is tiger fees that they refuse to offer a breakdown for. That would be illegal in Australia as a misleading fare... all taxes have to be accounted for and displayed, but I guess not in Singapore.

My guess is that anything above and beyond the amounts I gave you are fees imposed by the airline, not a government agency, to cover fuel and/or insurance costs. These are collected using a tax code and shown in the taxes/fees/charges section of the ticket. They are not a fare and are very common. They can't, however, be collected on ZED tickets.

**Nick** · 27-Apr-2010, 07:52 AM

Originally Posted by aazed

My guess is that anything above and beyond the amounts I gave you are fees imposed by the airline, not a government agency, to cover fuel and/or insurance costs. These are collected using a tax code and shown in the taxes/fees/charges section of the ticket. They are not a fare and are very common. They can't, however, be collected on ZED tickets.

With the rise in online ticketing comes the demise of clarity an openess in surcharges... oh well

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