Why does Aeroplan charge US Pass. Facility Charges & US Intl. Tax on awards?

Discussion in 'Air Canada | Aeroplan' started by B1BomberVB, Mar 3, 2014.  |  Print Topic

  1. B1BomberVB

    B1BomberVB Silver Member

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    Pass. Facility Charges, also known as XF taxes, are levied by airports in the USA similar to Canadian AIF's, but only $4.50 ($3 at some airports such as CLT) on each originating or connecting Px flying from that airport. By US Law, frequent-flyer award tickets are exempt from these taxes, but Aeroplan charges them for some reason. For example, I just booked a one-way nonstop SFO--PIT on UA on short notice. Using AC miles, I paid $2.50 TSA tax (XY) + $4.50 XF. If I had used UA miles, price was $2.50 XY + $75 Short Notice Fee, which was the greater of 2 evils.
    Likewise, AC will charge ~$17 (?) tax each way on flights from USA to Caribbean or Europe, which other airlines do not.

    It's been like this for years! Gee, hasn't the US IRS notified Aeroplan that some of the taxes they are collecting, do not apply & should be refunded to Pxx?
     
  2. LETTERBOY
    Original Member

    LETTERBOY Gold Member

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    Perhaps it's because Aeroplan isn't a US frequent flyer program?

    Hasn't Aeroplan notified the IRS that it's based in another country?
     
  3. slalom

    slalom Silver Member

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    ...sounds like "Systems Access Fees" from the phone companies - designed to disguise margin enhancement as a tax
     
  4. Canadi>n
    Original Member

    Canadi>n Gold Member

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    Isn't it AC that's charging the fees, not AE. AC tickets AE awards and thus pockets all the cash as part of the Scam Charges.
     
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  5. B1BomberVB

    B1BomberVB Silver Member

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    Nice try, Letterboy! British Airways & Qantas do not charge these taxes on exempt awards. If your theory held water, it would be the reverse: Aeroplan would try to refuse to collect USA taxes which ARE due! Why would any airline collect foreign taxes which the foreign taxing authority says are not due?!
     

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