FAA stops collecting airfare taxes — and the airlines cash in

by Grant Martin on

Recent budget woes in the legislative branch of our US government have been creating a cascade of disruptions, and the most recent hiccup involves the Federal Aviation Administration (FAA). Without proper agreement on a fiscal plan moving forward, the government has been forced to shut down a portion of the agency, most notably the section that collects taxes on our domestic airplane tickets.

Those taxes account for a modest percentage of each flight, roughly between 5 and 10%, and when travelers caught wind that the taxes would be discounted, they saw the silver lining of the shutdown as being a temporary sale on domestic tickets.

As planned, the FAA shutdown took place at midnight this morning, but the savings have barely matured. What happened?

Turns out, some of the airlines also realized the gap in price difference and decided to make that up by increasing their fares. So rather than passing the tax savings along to customers, they’re greedily taking the margin for themselves.

Not all airlines have reached into our wallets, however, apparently Virgin America has not only refused to increase fares but they’ve turned the event into a bit of public promotion. Last night the airline had a countdown to tax-free bookings on their sites and as promised, the fares have stayed low. Similarly, United appears to be keeping its fares in place.

On the flip side of the coin? US Airways, American and JetBlue seem to be the leaders in ripping off their consumers. AP has a bit more info if you want to become even more disappointed.

[Flickr image via Fly for Fun]

Virgin America names new plane after Twitter hashtag

by Libby Zay on

Virgin America increased its fleet to 39 planes last week, and the social media savvy company has decided to brand the newest plane after a Twitter hashtag: #nerdbird.

“For all our social media fans and followers, this bird’s for you!” announced the airline on their Facebook page. After three days in the air, the social media buzz is still soaring: travelers continue to tweet about the plane upon boarding and many are still announcing their hopes to take to the skies in the plane using the hashtag.

Virgin America tells Mashable that “nerdbird” is what the company’s regulars call flights between San Francisco and Boston, a commute often traveled by tech industry guests that the plane will fly. Other Virgin America plane names include Jefferson Airplane, the first plane christened in the fleet, and Air Colbert, named after comedian Stephen Colbert.

[Photo courtesy Virgin America]

Virgin Atlantic celebrates 25 years flying to Miami

by Chris Owen on

4.5 Million passengers later, Virgin Atlantic is celebrating 25 years of flying to Miami. Sir Richard Branson walked the wing of a Virgin Atlantic Airways 747-400 at Miami International Airport this week to celebrate 25 years of flying from London to Miami.

“This is a fantastic milestone in Virgin Atlantic’s history,” Branson said reports the DailyMail. “Miami was the second route Virgin Atlantic launched two years after the airline began and to think that we are now a world-class airline with 32 long-haul destinations is a dream come true.”

In celebration, the airline is offering fares from London to Miami for as low as $281 per person each way during it’s 25 year anniversary sale . Originally good through June 15th, the sale has been extended through June 21.
Since starting to fly the London to Miami route in 1986, the airline’s fleet has flown a total of 67 million miles to and from Miami and served guests over 5 million of their signature meals and ice cream. Passengers have enjoyed 165,000 bottles of champagne with the millionth glass supposedly served aboard the June 15 flight.

“Miami is a key route for Virgin Atlantic” Branson said “with many business travelers commuting on the route each year and holiday makers jetting out to enjoy Miami and its many beautiful beaches. Our promise to our passengers when we launched the route was to offer a fantastic quality of service and innovation onboard at great value and I believe that we continue to fulfill that promise 25 years later.”

Virgin Atlantic also celebrated this week the 10th anniversary of flights between London and Las Vegas with Branson and the world’s most famous burlesque performer Dita Von Teese, at an airside photocall as they walked the wing of the plane on arrival.

Since June 2000 Virgin Atlantic has flown 2 million passengers to the destination, with its twice-weekly service increasing to a daily flight in may 2006 due to the route’s popularity. Today, the airline is also announcing the launch of twice-weekly flights from Manchester to Las Vegas in April 2011.

Here’s to 10 and 25 more Sir Richard!

Virgin America now connects California to Chicago

by Libby Zay on

Virgin America is taking its mood-lit flights to the Midwest. Today the airline kicks off service from San Francisco and Los Angeles to Chicago O’Hare, and Gadling is joining the airline for its inaugural celebration.

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To celebrate the new service, Virgin is offering Chicago flyers a $25 Groupon deal for $100 in air travel, discounting one-way fares as low as $59, and gifting triple points to frequent flyer members.

Stay tuned to Gadling this week for updates from the events and notes from the first few days of service. Word in the underground is that tonight’s celebration at The Wit in Chicago is going to rock the house. Rest assured, we’ll be in the middle of that storm.

Virgin America’s flight for Chicago challenge

by Justin Delaney on

In May, Virgin America will begin flying to Chicago O’Hare from Los Angeles and San Francisco. To celebrate their service to an airport traditionally dominated by legacy carriers, Virgin is rolling out a social media contest to entice travelers to “put the smack down on everyday air travel.”

The contest invites Chicagoans to submit a photo or video via the Virgin America Facebook fan page that will be voted on by fellow Facebookers. Entrants will receive a two for one offer on the new routes, but the top ten vote-champions will receive a whole lot more.

The votes will be tallied to crown the top five videos and top five pictures. The winners of the vote will receive complimentary air travel for two from Chicago to Los Angeles or San Francisco on a competitor airline and return airfare on Virgin America’s inaugural flight to Chicago. The winners will be challenged to contrast the stale environs in the legacy cabins of the competition to Virgin’s neon aesthetics, clean lines, and personal touch screens.The winners will also be put up for three nights at either the posh Mondrian hotel in Los Angeles or the modern Clift hotel in San Francisco. For the cherry on top, Sir Richard Branson will welcome the winners on the red carpet for their return to Chicago O’Hare airport.

So get creative and upload some shots. Who knows, maybe come May you will be soaking in the pool at L.A.’s Mondrian wondering just how your life got so sweet. The contest ends on May 11. Virgin America will donate $5 per entry to Stand up for Cancer.