mamamia2

I'm wondering, when I was working on our latest trip to Europe, using our AA award miles, there was a HUGE difference in how much we were supposed to PAY TAXES, based on which airline we'd be flying with, yet when one purchases a ticket, the prices are very much the same...

Like: Flying Chicago to Madrid in Business Class, if we went with British via LHR it would cost us SUBSTANTIALLY more than flying Iberia direct. The AAdvantage agent explained that the reason is the higher taxes British is charging.

Betsy

The agent is correct. Taxes vary widely depending on the route. Flying through LHR is expensive, so try to avoid flying through that airport.

Betsy

Further information provided by the very knowledgeable gardyloo on another thread:

"Also be mindful that AA will tend to push award trips to Europe onto British Airways-operated flights, as BA has more flights over the Atlantic than AA. If you fly using BA planes, your "award" ticket will be subject to very large fuel surcharges imposed by BA. In business class, you'll probably be looking at close to $1000 for a round trip, in addition to any legitimate taxes or airport/security fees already applying. This also reduces the value of your miles hugely."

Gardyloo

AA is prone to cite "taxes" when they mean BA's fuel surcharges, which aren't taxes at all. The technical term for them is "profit."

This imposition of high "fuel fines" (as we call them) on mileage tickets is the subject of a (slowly moving) class action suit in US federal court. Don't hold your breath; in the meantime try for AA-operated flights, or Iberia (lower surcharges but still some) or Airberlin. You'll need to phone AA to see Iberia availability - not shown on AA's website. Also ask about connections using US Airways flights via Charlotte or Philly.

mamamia2

I've done all that, believe me, Gardyloo, I spent hours upon hours calling AAdvantage many times over a period of 6 months... They always say "it's not available right now, but try again"...

But my question is different, what I don't get is: How this huge difference is not reflected in ticket prices when one PURCHASES a ticket?

mamamia2

At one point we were planning a trip to Israel. The difference between getting there ORD-LHR with BA, and then El-AL to TLV vs. flying ORD-Amman with Royal Jordanian and then a short flight to TLV — the difference in "taxes" was well over $1,000.

Southam

Simple answer: Because AA and its Brit-Air partner can charge what they want to their "captive" points-redeeming customers. Travellers paying cash can choose other airlines, so the competition levels the prices. The airlines only issue points in the first place to be competitive, and we mislead ourselves when we think of the points as being the same as cash.

Gardyloo

<i>But my question is different, what I don't get is: How this huge difference is not reflected in ticket prices when one PURCHASES a ticket?</i>

On some itineraries, BA will have a very low base fare and will add fuel surcharges (and other legitimate "taxes") into the lump sum they charge you, while other airlines (say AA) will have a higher base fare, the same taxes, but <i>lower</i> fuel surcharges, if any. The net out-of-pocket cost is the same. You need to look at the "fare construction" details (usually available when you book) to see how things are balanced.

On most AA award itineraries, AA simply eats the fuel fines as part of their award offer. BA doesn't, so, say, a business class award trip to Europe that costs 100,000 AA miles and that's "worth" say, $3000 if you bought the ticket, means your AA miles are worth 3c apiece. If BA charges you $1000 in fuel fines, then the same 100,000 miles will be worth 2c each flying on BA metal. BIG reduction in the value of your miles.

Betsy

Thanks for pointing out the distinction between taxes and fuel surcharges aka "fuel fines", gardyloo.