ASX Announcemets: QF To reduce fuel surcharges

[oz_mark]

Qantas have released a statement on the ASX regrading reducing fuel surcharges.

International Surcharges down 7-9%
Domestic Fares down 2-3%

Edit: A report from Reuters. http://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUSSYU00525320081008

 

[ANstar]

Effective 9 OCT
UK & Europe
Was $210 down to $190
America's, Africa, India
Was $165 down to $150
Asia, Pacific Honolulu
$120 down to $110
NZ
$70 down to $65
Some domestic fares to also be reduced

 

[oz_mark]

So is it the fare and not the surcharge on domestic?

 

[Mal]

So is it the fare and not the surcharge on domestic?

I believe so. That's what they increased last time.

 

[oz_mark]

I believe so. That's what they increased last time.

Strange. Didn't they use as a justification for Fuel surcharges that they were easier to change than fares?

 

[Mal]

Strange. Didn't they use as a justification for Fuel surcharges that they were easier to change than fares?

IIRC, and some threads here should back it up, Qantas increased base fares by a few % twice in June/July/August due to fuel prices.

This was instead of increasing the fuel surcharge (ex-Aus).

Overseas it was a different story, and they kept increasing the fuel surcharges ex-places like SIN.

Can't fully recall if they only did domestic fares last time, or both domestic and Intl.

 

[oz_mark]

If they can just move fares up and down, why bother with a surcharge? I think they hve weakened their arguments for the reasons to use a surcharge rather than just move fares.

 

[opusman]

If they can just move fares up and down, why bother with a surcharge? I think they hve weakened their arguments for the reasons to use a surcharge rather than just move fares.

One reason is they can charge the fuel surcharge on award flights; if it was all built into the base fare then award flights would be free again* (remember those days? )


* not counting taxes, of course

 

[oz_mark]

One reason is they can charge the fuel surcharge on award flights; if it was all built into the base fare then award flights would be free again* (remember those days? )


* not counting taxes, of course

While that is true, I don;t believe it was an argument the airlines used to justify the surcharge versus increasing fares. I seem to recall they said surcharges were easier to remove than decreasing a fare.

 

[docjames]

The Surcharges also avoid some commission to Travel Agents (% paid on the "base" fare only, not on the taxes and surcharges)

 

[oz_mark]

Had a look at some domestic fares today, and they don't seem to have gone down at all.

 

[JohnK]

If they can just move fares up and down, why bother with a surcharge? I think they hve weakened their arguments for the reasons to use a surcharge rather than just move fares.

There is neither logic nor justification behind fuel surcharges. Qantas and other airlines have proven it over and over.

 

[serfty]

There is neither logic nor justification behind fuel surcharges. ...

Actually there is great logic from a business POV:

• Decreases commission payable to TAs
• Increases revenue from Award redemption
• Increases revenue from ATW type tickets booed though Qantas - they charge for every segment but none none of the Fuel Fine revenues goes to carriers other than Qantas