New and notes from around the interweb:
- The secret benefit to airlines from checked baggage fees (My Forbes.com column)
- American Express Centurion lounges no longer allow access more than 3 hours prior to departure – however this policy does not apply during layovers in a connecting city.
- Blackstone may buy and lease back MGM Grand and Bellagio.
- American Airlines loses more bags, too.
- Actress Rose McGowan accidentally left drugs behind on a United flight in 2017. There’s no evidence the drugs were planted as she claimed.
- Allegiant has a new deal to put its name on the Las Vegas Raiders stadium. But is it worth it when the Raiders’ owner actually flies Allegiant?
I don’t know if this is a good or bad thing, but Mark Davis is really bad at being rich. https://t.co/T2dcpgfP0S
— Dan Malin (@RealDANlanta) September 16, 2019
I often find that those with money have money because they hate to spend money
The tax dodge also applies to resort fees, destination fees, fuel surcharges, carrier imposed surcharges .
That’s not how any of this works. Airlines don’t “eat” the 7.5% excise tax on airline tickets out of their bottom line…passengers pay the 7.5% tax on air transportation when they buy a ticket and the airline *passes that tax on to the government*. If the excise tax were also applicable to checked bag fees, the passenger would also pay the 7.5% tax and the airline would *pass the collected tax on to the government*. Hence, there is no savings to the airline as it is merely a pass-through to the government.
The checked bag income of course contributes to their total revenue for corporate income tax purposes.
I frequent the Centurion lounges and the exception for layovers was made clear months ago when the policy was first implemented. You and Lucky (OMAAT) seem to think this is new and newsworthy. Anyone with an Amex Platinum or Centurion card should have known this so I guess it is a slow news day and you guys are just looking for something to fill space