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FR Earned E60m/£42m/$84m By Not Refunding Taxes  
User currently offlinePe@rson From United Kingdom, joined Jan 2001, 19235 posts, RR: 52
Posted (6 years 12 months 3 hours ago) and read 1671 times:

Something a little controversial involving - yep, you've guessed it - that deliciously contentious and irreverent airline, Ryanair:

From UK Airport News:

"Ryanair, Europe's biggest budget airline, earned about E60 million (£42m/US$84m) last year by not refunding taxes and airport levies to customers who booked but did not fly, the Times reports. The newspaper says that the figure comes from filings with the US Securities and Exchange Commission (SEC).

It adds that almost 3.2 million people booked flights with Dublin-based Ryanair that were not subsequently taken. The airline will refund taxes but, like most other airlines, it charges an administration fee to do so. Given that APD is £10 on short haul flights and Ryanair's administration fee is £15, unless the flight cancelled is a return journey within the UK (where two lots of £10 is payable), the passenger will not receive a refund.

However, Ryanair does not pay the tax over to the UK Government on flights that are not taken, even where it does not refund the money to its passengers. This has allowed the airline to make around E60 million in additional profits last year, if the Times' calculations are correct."


"Everyone writing for the Telegraph knows that the way to grab eyeballs is with Ryanair and/or sex."
16 replies: All unread, jump to last
 
User currently offlineScouseflyer From United Kingdom, joined Apr 2006, 3395 posts, RR: 9
Reply 1, posted (6 years 12 months 3 hours ago) and read 1671 times:

Quoting Pe@rson (Thread starter):
The airline will refund taxes but, like most other airlines, it charges an administration fee to do so. Given that APD is £10 on short haul flights and Ryanair's administration fee is £15

how can they be allowed to stop people reclaiming what is theirs by slapping such a large fee on top?


User currently offlineRussianJet From Belgium, joined Jul 2007, 7704 posts, RR: 21
Reply 2, posted (6 years 12 months 3 hours ago) and read 1671 times:
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Typical behaviour from an airline that repeatedly demonstrates no respect for the law or the rights of its customers. Before anyone says it, I know they're not the only airline to do this, and it's disgraceful behaviour no matter who is involved, but those figures are obsene. It's simply not money they're entitled to.


✈ Every strike of the hammer is a blow against the enemy. ✈
User currently offlineNighthawk From UK - Scotland, joined Sep 2001, 5157 posts, RR: 33
Reply 3, posted (6 years 12 months 2 hours ago) and read 1671 times:

Quoting Pe@rson (Thread starter):
US Securities and Exchange Commission (SEC).

wtf has the US got to do with this??

Quoting RussianJet (Reply 2):
Typical behaviour from an airline that repeatedly demonstrates no respect for the law or the rights of its customers.

Although I am far from a ryanair fan, that comment is just plain wrong, all of ryanairs procedures are carried out within the law. If they were not they would have been sued, or even shut down by now. In this case, I believe the rule is that they are allowed to charge a small admin fee for reclaiming the tax. I am pretty sure you will find most other airlines will also do likewise.

you will also probably find that 90% of the passengers who did not fly simply did not know they could reclaim the taxes and never even enquired about doing so....

[Edited 2007-10-09 06:25:25]


That'll teach you
User currently offlinePe@rson From United Kingdom, joined Jan 2001, 19235 posts, RR: 52
Reply 4, posted (6 years 12 months 2 hours ago) and read 1671 times:

Quoting Nighthawk (Reply 3):
wtf has the US got to do with this??

No idea. I copied and pasted.

Quoting Nighthawk (Reply 3):
I am pretty sure you will find most other airlines will also do likewise.

Yep.

Quoting Nighthawk (Reply 3):
you will also probably find that 90% of the passengers who did not fly simply did not know they could reclaim the taxes and never even enquired about doing so....

Yep.

Quoting Nighthawk (Reply 3):
that comment is just plain wrong

He is the most anti-FR member on A.net.  Wink



"Everyone writing for the Telegraph knows that the way to grab eyeballs is with Ryanair and/or sex."
User currently offlineTonforty From United Kingdom, joined May 2006, 69 posts, RR: 0
Reply 5, posted (6 years 12 months 2 hours ago) and read 1671 times:

Quoting Nighthawk (Reply 3):
you will also probably find that 90% of the passengers who did not fly simply did not know they could reclaim the taxes and never even enquired about doing so....

Definately! I don't miss flights very often, but I have on several occasions and I didn't know I could reclaim the taxes.


User currently offlineDK001 From Ireland, joined Dec 2003, 40 posts, RR: 0
Reply 6, posted (6 years 12 months 2 hours ago) and read 1671 times:

Quote:
US Securities and Exchange Commission (SEC). wtf has the US got to do with this??

This information was in a report to the US Stock exchange as Ryanair is quoted on the NASDAQ (US Stock Exchange), They have to file these reports yearly.


User currently offlineRJ100 From Switzerland, joined Nov 2000, 4119 posts, RR: 29
Reply 7, posted (6 years 12 months 2 hours ago) and read 1671 times:

In my opinion it is not the airline's fault if passengers don't show up (in other words don't keep their contract). Also I think that passengers who book flights and then don't keep their contracts and ask back the taxes cause additional administration costs to the airline. I don't think an airline should take over these costs. And I don't think that other passengers should buy for such additional costs with higher air fares. Therefore I fully understand why airlines ask for a fee if you want to get back your taxes.

My 2 cents  Wink



none
User currently offlineBHXFAOTIPYYC From Portugal, joined Jun 2005, 1644 posts, RR: 0
Reply 8, posted (6 years 12 months ago) and read 1671 times:

FR has every right, as we do, to charge an admin fee for refunds. They are running a business, not a charity, and they are by no means the only carrier to do so.


Breakfast in BHX, lunch in FAO, dinner in TIP, baggage in YYC.
User currently offlineANother From , joined Dec 1969, posts, RR:
Reply 9, posted (6 years 12 months ago) and read 1671 times:

Quoting BHXFAOTIPYYC (Reply 8):
FR has every right, as we do, to charge an admin fee for refunds. They are running a business, not a charity, and they are by no means the only carrier to do so.

Couldn't agree more, but it we look at the numbers they would suggest that their administrative costs would be in the range of E60 million, or more, if they had to handle all such claims.

I know Irish costs are high but couldn't you hire 10 or 15 people for less than E1 million? That should be plenty to handle tax only claims.

The UK banks are getting hammered by consumers and courts for 'unreasonable' charges. Wonder if would see something similar in Ireland.


User currently offlineRussianJet From Belgium, joined Jul 2007, 7704 posts, RR: 21
Reply 10, posted (6 years 11 months 4 weeks 1 day 20 hours ago) and read 1484 times:
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Quoting Nighthawk (Reply 3):
Although I am far from a ryanair fan, that comment is just plain wrong, all of ryanairs procedures are carried out within the law.

I have to disagree. I was not given vouchers within the specified time frame nor was I given the appropriate compensation for the mammoth delay we ending up suffering. How is that in accordance with the law?



✈ Every strike of the hammer is a blow against the enemy. ✈
User currently offlineRussianJet From Belgium, joined Jul 2007, 7704 posts, RR: 21
Reply 11, posted (6 years 11 months 4 weeks 1 day 20 hours ago) and read 1484 times:
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Quoting Pe@rson (Reply 4):
He is the most anti-FR member on A.net. Wink

Pe@rson my friend, that's not necessarily fair. If you review my many posts, you will see that where people moan about them but the complaint is clearly not the airline's fault, then I defend them. Accordingly, where they are at fault I criticise them. Though yes, as you've probably already figured out, it'll be a cold day in hell before I fly them again. And, I used to fly them a lot.

Might I also add that you, Pe@rson, are probably the most pro-FR member of A.net.

[Edited 2007-10-09 13:04:41]

[Edited 2007-10-09 13:30:09]


✈ Every strike of the hammer is a blow against the enemy. ✈
User currently offlinePe@rson From United Kingdom, joined Jan 2001, 19235 posts, RR: 52
Reply 12, posted (6 years 11 months 4 weeks 1 day 19 hours ago) and read 1484 times:

Quoting RussianJet (Reply 11):
Might I also add that you, Pe@rson, are probably the most pro-FR mamber of A.net.

Certainly not! I just dislike FR less than every other carrier.  Wink



"Everyone writing for the Telegraph knows that the way to grab eyeballs is with Ryanair and/or sex."
User currently offlineRussianJet From Belgium, joined Jul 2007, 7704 posts, RR: 21
Reply 13, posted (6 years 11 months 4 weeks 1 day 19 hours ago) and read 1484 times:
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Quoting Pe@rson (Reply 12):
Certainly not! I just dislike FR less than every other carrier

Ha ha, well said that man. Fair play to you.



✈ Every strike of the hammer is a blow against the enemy. ✈
User currently offlineBond007 From United States of America, joined Mar 2005, 5417 posts, RR: 8
Reply 14, posted (6 years 11 months 4 weeks 1 day 19 hours ago) and read 1484 times:

Quoting Pe@rson (Thread starter):
However, Ryanair does not pay the tax over to the UK Government on flights that are not taken, even where it does not refund the money to its passengers. This has allowed the airline to make around E60 million in additional profits last year, if the Times' calculations are correct."

You can twist a story many ways!

The fact that it is a tax is irrelevant. The story makes out that they are taking the taxes and not paying them, therefore making millions because of no 'tax refunds'.

It's an admin charge, fair and square. Actually, the customer is getting away lightly. First, they are able to get a full refund, less 15 quid (or 10 as discussed), and in theory they could have could have refunded the FULL amount, including taxes, and charged the 15 quid admin charge to everyone ... making even more money.

No different (albeit much cheaper), than the 10-15% restocking charge that many retailers have if you return products, and I guarantee the airline has a lot more admin costs.


Jimbo

[Edited 2007-10-09 13:29:55]


I'd rather be on the ground wishing I was in the air, than in the air wishing I was on the ground!
User currently offlinePe@rson From United Kingdom, joined Jan 2001, 19235 posts, RR: 52
Reply 15, posted (6 years 11 months 4 weeks 1 day 19 hours ago) and read 1484 times:

Quoting Bond007 (Reply 14):
You can twist a story many ways!

As I said, I copied and pasted it.



"Everyone writing for the Telegraph knows that the way to grab eyeballs is with Ryanair and/or sex."
User currently offlineBond007 From United States of America, joined Mar 2005, 5417 posts, RR: 8
Reply 16, posted (6 years 11 months 4 weeks 1 day 19 hours ago) and read 1484 times:

Quoting Pe@rson (Reply 15):
As I said, I copied and pasted it.

I was referring to the editor, not you ... Smile


Jimbo



I'd rather be on the ground wishing I was in the air, than in the air wishing I was on the ground!
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