Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!usa-post Newsgroups: usa-today.travel From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: travel Tue, Feb 25 1992 Date: Tue, 25 Feb 92 06:35:01 EST Message-ID: DECISIONLINE: Travel USA TODAY Update Feb. 25, 1992 Source: USA TODAY:Gannett National Information Network MIXED MILES CAN BE TAXED: Frequent fliers only owe income tax on miles accumulated on business and used for leisure travel, according to USA TODAY travel experts. Miles gotten on business and used for business - or acquired on leisure flights and used for leisure travel- are considered discounts, not taxable income. But as far as anyone can tell, no one's had to pay penalties for unreported trips. (For more, see special Tax package below.) UNITED FACES MAJOR LAYOFFS: Stephen Wolf, head of the USA's largest airline, warned Monday that unless United Airline's earnings improve, major layoffs would be necessary. Last year, United lost $332 million and posted a record loss of $253 million the fourth quarter. In a letter to employees last week, Wolf said United could not continue to suffer such huge losses and not do anything about it. CUSTOMER SERVICE EMPHASIZED: United Airlines Chairman Stephen Wolf has called on employees to cut costs and emphasize strong customer service to attract travelers. United lost $332 million last year. Though the carrier is one of the strongest U.S. airlines, air fare wars and the recession have taken their toll. UAL stock fell 2 1:4 to $153 Monday. LAKE CALUMET SITE GETS NOD: A third airport for the Chicago area should be built on the city's southeast side near Lake Calumet, and not in Gary, Ind., a panel of officials from Illinois, Indiana and Chicago decided. The vote was 6-4 with one member voting against both sites. The federal government has the final say. The airport couldn't open before 2005. PARK VISITORS RECYCLE: Visitors to national parks dropped off more than 220 tons of recyclables last year, the second year of a National Park Service program to educate visitors about environmental needs and urge them to use drop sites for plastics, glass and aluminum. The program, dubbed "as easy as a walk in the park," was initiated with Dow Chemical Co. and Huntsman Chemical Corp. NEW PARK CREATED IN ST. CROIX: President Bush Monday signed legislation creating a new national park in St. Croix, U.S. Virgin Islands. The 912-acre strip of Caribbean beach in Salt River Bay marks the only known site where Christopher Columbus went ashore in what is now part of the USA. Cost: $23 million. LIFT TICKETS GRAB MOST MONEY: About $7 billion per year is spent on skiing and ski-related products, according to the Economic Analysis of North American Ski Areas. The most money, 54%, goes to ski lift tickets. Then: Food and beverage 11%; non-skiing recreation 8%; ski lessons 7%; ski equipment and clothing 4%; and equipment rental 4%. Miscellaneous costs account for 12%. NEW ACCOUNT BRINGS CHEAP TICKET: Coast Federal Bank has an agreement with Northwest Airlines to reward new account holders with discount tickets for trips before May 22. The airline has similar arrangements with other banks. Other airlines have stepped up promotions with banks, grocery and drug stores and the like. The airlines get free local advertising, attractive in markets new to the airline. TICKETS ABOUND IN CHARLESTON: Airport police in Charleston, S.C., issued 4,647 speeding, parking and other tickets in the second half of 1991. That's $650 per day in fines. The 35 mph speed limit on the airport's four-lane road has drawn some blame, but airport officials say the speed limit was recommended by a consultant. SPECIAL PACKAGE ON TAX: MILES WOULD EQUAL INCOME BONUS: The Internal Revenue Service insists that travelers who earn frequent-flier miles on business and use the miles for leisure travel are getting an income bonus, just like someone who gets a company car that can be driven for leisure. The IRS says that the fair-market value of such frequent-flier miles income should be reported for income tax. COURT WOULD FAVOR IRS: The frequent-flier miles income tax issue never has reached tax court. Experts say the court likely would come down in favor of the IRS. But the IRS has issued no regulations, because enforcement would be an administrative nightmare. Determining a fair-market value for the trip could be tricky when a route can have dozens of fares and discounts. SOME TICKETS AREN'T FREE: Some trips are a combination of business and pleasure, making it difficult to figure tax on frequent-flier miles. Other flier taxes can't be as easily ignored as the miles tax. Often a free ticket will have taxes, fees and surcharges, meaning a one-way flight abroad could costs nearly $20. Airlines will often pay those fees on domestic flights so the trip is free for their customers. (End of package.) 24-HOUR TELEPHONE INFORMATION: USA TODAY Weather Hot Line. 95 cents a minute. 1-900-555-5555. Travel Editor: Beth Mann. (1-919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution violates federal law. 08:0002250000D0225 WEAT- R C East-to-get-soaked.................... A D0225 This article is copyright 1992 Gannett News Service. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM