Published at Saturday, April 06th, 2019 - 01:13:21 AM. Type of airline. By Adelle Jäger.
Ultimately the federal government provided $4.6 billion in one-time subject-to-income-tax cash payments to 427 U.S. air carriers with no provision for repayment essentially a gift from the taxpayers. (Passenger carriers operating scheduled service received approximately $4 billion subject to tax.) 48 In addition the ATSB approved loan guarantees to six airlines totaling approximately $1.6 billion. Data from the U.S. Treasury Department show that the government recouped the $1.6 billion and a profit of $339 million from the fees interest and purchase of discounted airline stock associated with loan guarantees.
Airlines assign prices to their services in an attempt to maximize profitability. The pricing of airline tickets has become increasingly complicated over the years and is now largely determined by computerized yield management systems.
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