September 7, 2023 - Kivo Daily

Unveiling Skiplagging: The Sneaky Travel Technique That’s Shaking Up Airline Industry Norms

Alice Blake on September 7, 2023

Delve into the Controversial World of Skiplagging: How Passengers Are Outsmarting Airline Pricing

In the realm of modern air travel, a new legal battle has emerged, pitting American Airlines against a contentious ticketing platform. This lawsuit has thrust the spotlight back onto the intriguing phenomenon known as “skiplagging” or “hidden city ticketing.” This crafty strategy, employed by some savvy passengers, promises reduced fares while introducing a dash of controversy to the aviation landscape.

Defining Skiplagging: A Travel Tactic Unveiled

Skiplagging, the focus of this strategic discourse, involves an innovative travel technique. Imagine a passenger’s desire to journey from the bustling streets of New York to the charming allure of Charlotte, N.C. Yet, the nonstop route bears a hefty price tag. Enter skiplagging, a tactic where these cost-conscious travelers opt for a more economical flight that carries them from New York to Denver, with a layover scheduled in Charlotte. But here’s the twist: instead of completing the entire journey to Denver, they disembark at the stopover in North Carolina, sidestepping the rest of their ticketed route.

This practice isn’t a novel concept. Henry Harteveldt, a distinguished travel industry analyst at Atmosphere Research Group, reveals that travel agents have been privy to hidden city fares for decades. In some instances, these agents willingly shared these secrets with their clientele. However, the surge in airline prices in late 2021 breathed new life into the age-old practice of skiplagging, amplifying its prominence.

Elevating Hidden City Ticketing

At the forefront of this revolution is Skiplagged.com, a website that has played a pivotal role in propelling hidden city ticketing to the forefront. The platform empowers users to input their desired destinations, subsequently unveiling flights where said destination functions as a stopover en route to another city. This strategic maneuver leads to a reduced fare, making air travel more accessible. The brilliance lies in passengers disembarking at the connecting city, bypassing the second leg of their journey altogether.

However, as the spotlight grows brighter, so do the legal challenges. In a recent turn of events, American Airlines has taken Skiplagged to federal court, alleging the platform’s practices to be “deceptive and abusive.” The airline contends that Skiplagged misleads the public into believing it can issue valid tickets on America’s behalf, a claim that American vehemently refutes.

Peering into Airlines’ Disdain for Skiplagging

Skiplagging itself isn’t illegal, yet major airlines such as American, Delta, Southwest, and United are staunchly against it. But why? Tim Huh, a respected professor at the University of British Columbia’s Sauder School of Business, points out that airlines stand to lose revenue due to this practice. For flights that involve layovers, airlines price them more competitively to attract customers. However, they reserve the right to command higher prices for direct flights. This dynamic ensures that when travelers opt for skiplagging, airlines miss out on potential revenue.

Moreover, the repercussions extend beyond mere monetary loss. When a passenger skips the final leg of their journey, airlines are left with empty seats that could have been sold at a premium had they not been bundled into a multi-stop itinerary. This discrepancy disrupts the careful revenue projections airlines rely upon.

Navigating the Risks and Consequences

While skiplagging offers financial advantages to passengers, it comes with its fair share of risks. Airlines possess the authority to respond if they catch wind of this practice. Potential consequences include ticket cancellations and, in extreme cases, bans from flying with the airline. For instance, a recent incident involved a North Carolina teenager disembarking at a connection in Charlotte rather than completing the journey from Florida to New York. American Airlines banned the teenager from flying with them for three years.

Furthermore, the benefits of skiplagging are often short-lived. Success may be fleeting, primarily restricted to one-way travel. Airlines can quickly identify deviations from the ticketed itinerary, leading to the cancellation of return flights. Additionally, passengers employing skiplagging forfeit the luxury of checked luggage. Only carry-on bags accompany them, ensuring a streamlined travel experience.

Skiplagging’s Intriguing Intersection with Air Travel

As American Airlines squares off against Skiplagged.com in court, the world of skiplagging remains a polarizing topic. This crafty technique, born out of the desire to save on airfares, challenges the norms established by major airlines. By sidestepping certain legs of their journey, passengers embrace affordability while airlines grapple with revenue loss. It’s a delicate balancing act that exposes the tension between passenger ingenuity and airline policies. Whether skiplagging is an act of strategic brilliance or an ethical quagmire is a debate that continues to soar among both travelers and industry experts alike.

UAW Takes Legal Action Against GM and Stellantis Over Contract Negotiations

Scarlet Logan on September 7, 2023

UAW President Shawn Fain Files Unfair Labor Practice Charges

In a recent development, United Auto Workers (UAW) President Shawn Fain has taken a significant step in response to contract negotiations with major automakers. Frustrated by what he perceives as a lack of good faith bargaining, Fain announced that the UAW has filed unfair labor practice charges against General Motors (GM) and Stellantis. This legal action was prompted by the automakers’ alleged failure to respond promptly and positively to the union’s demands.

GM and Stellantis Accused of Willful Refusal to Bargain in Good Faith

Fain did not mince words when he accused GM and Stellantis of a “willful refusal to bargain in good faith.” He went on to describe this behavior as not only insulting and counterproductive but also illegal. These allegations were made during a Facebook Live session, where Fain emphasized the gravity of the situation.

“GM and Stellantis’ willful refusal to bargain in good faith is not only insulting and counterproductive, it’s also illegal,” said Fain.

“That’s why today, our union filed unfair labor practice charges, or ULPs, against both GM and Stellantis with the National Labor Relations Board.”

Stellantis Responds, Denies Allegations

In response to these allegations, Stellantis expressed shock and disbelief, asserting that there is no basis for Fain’s claims. The company issued a statement expressing its disappointment that Fain seemed more focused on pursuing legal charges than engaging in genuine negotiations. Stellantis emphasized its commitment to continuing negotiations in good faith to secure a new agreement and ensure the future well-being of its employees.

“This is a claim with no basis in fact, and we are disappointed to learn that Mr. Fain is more focused on filing frivolous legal charges than on actual bargaining,” the company statement reads.

“We will vigorously defend this charge when the time comes, but right now we are more focused on continuing to bargain in good faith for a new agreement. We will not allow Mr. Fain’s tactics to distract us from that important work to secure the future for our employees.”

GM’s Response Echoes Stellantis’ Stance

GM echoed Stellantis’ sentiments regarding the NLRB charges, stating that it was surprised by and strongly refuted the charges filed by the UAW. The automaker emphasized its dedication to negotiating directly and in good faith with the union, highlighting the progress made in these negotiations. Gerald Johnson, GM’s executive vice president of global manufacturing, reiterated the company’s commitment to reaching a mutually beneficial agreement.

“We are surprised by and strongly refute the NLRB charge filed by the International UAW. We believe it has no merit and is an insult to the bargaining committees. We have been hyper-focused on negotiating directly and in good faith with the UAW and are making progress,”

Ford Faces Criticism Over Contract Proposal

While Fain did not file a complaint against Ford Motor, he heavily criticized the company’s response to the UAW’s demands. According to Fain, Ford’s recent proposal was “concessionary” and failed to meet the union’s needs. He cited specific issues, such as a 9% wage increase over the four-year term, one-time bonuses, and the use of temporary workers without the same benefits.

Ford’s CEO Responds and Presents Counterarguments

In response to Fain’s criticism, Ford released a comprehensive statement by CEO Jim Farley. Farley provided additional details of Ford’s proposal, emphasizing a 15% guaranteed combined wage increase, substantial bonuses, and other improvements over the last contract. He highlighted the importance of the proposed deal for Ford’s workers and the company’s ability to respond to industry transformations.

“This would be an important deal for our workers, and it would allow for the continuation of Ford’s unique position as the most American automaker — and give us the flexibility we need within our manufacturing footprint to respond to customer demand as the industry transforms,” said Farley.

“This offer would also allow Ford to compete, invest in new products, grow and share that future success with our employees through profit sharing.”

Contrasting Demands and Negotiations

The negotiations between the UAW and the automakers have exposed significant gaps in their positions. While the union has demanded a 46% wage increase, restoration of traditional pensions, and other substantial benefits, the companies have put forward their proposals, which include competitive wage increases and bonuses but differ from the union’s demands.

Black couples still get unfair treatment, they pay higher marriage penalty tax

Jerry Cooper on September 7, 2023

Black couples – The documents don’t mandate that persons engaged indicate their race in reference to federal tax filings in America

The tax code is frequently praised for being race-blind, but it doesn’t explicitly declare itself to be race-neutral.

Black couples continue to experience prejudice when it comes to marriage tax penalties in a world that is still seeking to leave behind certain antiquated attitudes.

The news

According to recent Tax Policy Center studies, Black couples often pay more marriage taxes than White couples.

As part of a growing body of studies, it shows how tax law either improves or worsens the income gaps among White and Black couples.

The study demonstrates that there are racial differences in the income tax advantages and disadvantages of marriage.

The likelihood of racial unfairness in the tax law is raised by the groundbreaking study of the following legal scholars, which is supported by this argument:

Dorothy Brown
Beverly Moran
William Whitford

Marriage penalties

Marriage penalties are more likely to be used when both spouses are employed than when there is only one source of income.

The penalties are more likely to be greater when the two spouses earn roughly the same amount of money.

Yet, families with children continue to have a higher likelihood of receiving penalties.

Economic facts

William Gale, a co-director and co-author of the Tax Policy Center’s most recent marriage study, contributed to the new findings.

He stressed that if a married Black couple’s financial information were identical to that of a married White pair, then their tax burdens would be the same.

Nonetheless, there are discrepancies between Black and White couples’ average economic statistics.

For instance, black couples are more likely to reside in a family with two income earners.

Both are more likely to be earning the same income as each other and have dependents.

“We find that Black couples are more likely than White couples to experience an income tax penalty from marriage and to face higher penalties,” the authors wrote in the study.

“We show that these patterns arise because, controlling for income, Black spouses have more equal earnings than White spouses… and because Black couples are more likely to have dependents.”

Payment differences

According to researchers, married couples that are penalized must pay a variety of fees.

Black couples paid less money overall than White couples did, while spending more as a proportion of their income.

For instance, they only pay $1,804 instead of $2,091.

Nonetheless, Black couples contribute 1.8% of the income compared to White couples’ 1.4%.

Researchers focused on households with adjusted gross incomes between $50,000 and $100,000 in accordance with the tax rules from 2018.

They found that 59% of Black couples had marital sanctions, compared to 51% of White couples.

Black couples frequently spend $150 or more extra.

Similar to this, just a tiny portion of Black couples received a 33% incentive while White couples received a marriage bonus of 44%.

Typical marriage bonuses were above $170.

“Taken together, Block couples in this income group paid, on average, a net penalty of $358,” the report stated.

“White couples in this income received, on average, a net bonus of $61.”

Similar patterns were discovered by researchers with different socioeconomic categories.

Tax treatment change

The Tax Policy Center issued its analysis after the US Treasury’s data release on how to ascribe race and ethnicity to tax data.

In response to President Joe Biden’s executive order, which directed federal agencies to reform policies and advance racial equity, the effort was started.

However, the authors contend that because race is not explicitly mentioned in the tax statute, there is no straightforward mechanism to remedy racial disparities in the tax treatment of marriage.

Another option they mentioned was enabling married couples to register separately as “unmarried.”

Nevertheless, the proposal will just make taxes more complicated while expanding potential for tax fraud.

William Gale also emphasizes that it is too early to go into depth about how federal tax and other policies impact racial equity.

“We’re maybe in the second inning,” said Gale. “There is much work to be done.”

Image source: NBC Palm Springs

Day: September 7, 2023