 The impact of infrastructure-related taxes and fees on domestic airline fares in the USJoakim Karlsson, Amedeo Odoni and Shiro Yamanaka Journal of Air Transport Management, 2004, vol. 10, issue 4, 283-291 Abstract: This paper estimates the impact of infrastructure-related add-on taxes and fees on the direct cost of domestic air travel in the US. We work with the large DB1A database of the Bureau of Transportation Statistics of the US Department of Transportation to conclude that the effective tax rate (ETR) on the average base fare (BF) was 15.5% in the Second Quarter of 2002. Depending on the filtering rules for extremely low and high fares in the database, the ETR ranges from 15.4% to 16.3%. The incidence is much heavier on the least expensive tickets, because three out of the four add-on taxes and fees are based on the passenger's itinerary and are independent of the BF. Partly as a result, the ETR on tickets issued by low-cost carriers is somewhat greater than on those issued by other airlines. A comparative analysis of 1993 data indicates that the ETR was 10.9% at the time. A large portion of the increase between 1993 and 2002 is due to a striking 25% decline in the yields achieved by the airlines during that period. Keywords: Airline economics; Aviation infrastructure costs; Effective tax rate; Ticket taxes (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jaitra:v:10:y:2004:i:4:p:283-291 DOI: 10.1016/j.jairtraman.2004.03.006 Access Statistics for this article Journal of Air Transport Management is currently edited by Anne Graham More articles in Journal of Air Transport Management from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.