Fuel Surcharges! Time for a rethink???

[Colster]

So with the oil,price being the same as 2005, wouldn't it be fairer and simpler ™ to move the surcharge back to the level of 2005????

Just saying

 

[JohnK]

You are being way too logical.

Qantas is quick to increase fuel surcharges but hesitant to drop fuel surcharges when they should.

Now it would not surprise me to see the current fuel surcharge increase if fuel starts to increase again.

 

[Himeno]

This is why "fuel surcharges" should be regulated like in Japan and Hong Kong.
Take average price over 2 month period. Match that average price to a predetermined scale.
eg https://www.jal.co.jp/en/inter/fuel/kerosene.html

 

[opusman]

There's only so much profit they can make out of toasters, you want to throw their recovery into doubt at this delicate stage??!

 

[deejo77]

Checked the calendar to see if it was the 1st of April, they will not adjust them.

 

[Colster]

Seriously, what is the ACCCs job?

 

[Melburnian1]

JohnK, in fairness to Qantas, it is not only it that does this, but many airlines.

Remember, AJ is achieving a QF financial "recovery" from a one year $2.8 billion annual loss to perhaps an $800 million this FY profit all on his own. Why spoil his public message and new found hero status?

 

[Ansett]

I cant see any airline changing its over all price based on a drop in the price of oil. Even if an airline was to reduce the fuel surcharges and other taxes they would simply increase the base price. The only people to benefit would be those on redemption fares where the now exorbitant taxes would be reduced.

 

[straitman]

JohnK, in fairness to Qantas, it is not only it that does this, but many airlines.

Remember, AJ is achieving a QF financial "recovery" from a one year $2.8 billion annual loss to perhaps an $800 million this FY profit all on his own. Why spoil his public message and new found hero status?

Very tongue in cheek, I hope.

If they simply came forth and stated that they would love to decrease the fuel charges but due to the current financial situation they will be absorbed into the bottom line and reduced later if/when possible.

Whilst not necessarily happy about the situation most people would probably understand.

 

[RooFlyer]

Very tongue in cheek, I hope.

If they simply came forth and stated that they would love to decrease the fuel charges but due to the current financial situation they will be absorbed into the bottom line and reduced later if/when possible.

Whilst not necessarily happy about the situation most people would probably understand.

Perhaps not surprisingly, I wouldn't. It wouldn't have been budgeted for in the 'recovery'. Its a surcharge for fluctuating fuel prices, pure and simple (or that's what its explained as). Pocketing the profit when their prices decrease, and stay down over weeks and months is gouging, pure and simple.

 

[dajop]

I cant see any airline changing its over all price based on a drop in the price of oil. Even if an airline was to reduce the fuel surcharges and other taxes they would simply increase the base price. The only people to benefit would be those on redemption fares where the now exorbitant taxes would be reduced.

Yes fuel surcharges are largely irrelevant to the price most of us see. These prices are set simply on supply and demand. Fuel surcharges have had very little (or no) effect on most of the lower end fares.

But most of use want to see them go down because they will lower the ridiculously high co payment associated with award bookings. Which is the reason airlines are slow in moving them down!

 

[Melburnian1]

dajop, very important point.

Without veering off topic too much, it has always intrigued me that VA's taxes and charges when one redeems FF points are (in theory, not accounting for differing points redemption conversions which for an SQ flight on VA points are high) much lower than QF's.

Theoretical profit maximising behaviour where there was a duopoly might imply that if QF had a $500 taxes and fees co payment when one redeemed FF points, VA's might be similar. That is not the case.

Is there any particular reason - does VA consider it makes as much money with higher numbers of points required for SQ redemption flights?

 

[knasty]

The other thing to remember with fuel surcharge is you're paying today for fuel which may not be consumed until almost a year in the future. Who knows what the prevailing cost per barrel will be then? The link is always tenuous.