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Lower Frequent Flyer charges, review of International fare structure

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blackcat20

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My reading of it is that the fuel surcharge will be incorporated into the fare, so prices won't actually drop... Good for reward tickets but no real change for revenue tickets.
 

Aussie_flyer

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My reading of it is that the fuel surcharge will be incorporated into the fare, so prices won't actually drop... Good for reward tickets but no real change for revenue tickets.
Airline tickets are cheaper now than ever. The currebt sale is $649 to Singapore . How much do you think they should charge?
 

Supersonic Swinger

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Until they drop to the level of Virgin Australia or the US carriers, this is not so much a 'positive' but a 'slightly smaller negative' for the program.
 

docjames

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Good that it's no longer on ff redemptions although cant help but feel they've been forced into it by virgin (rather than being proactive). Appropriate it's in the base fare (where it should have been years ago!)

QF press release said:
From tomorrow, fuel-related charges that currently apply to Frequent Flyer on Qantas and Jetstar Classic Award redemption bookings will fall by up to $110 in Economy and up to $130 in Premium Economy on some routes for a return flight

Can Red Roo perhaps confirm/refute whether the removal of the surcharges also applies to J/F cabins? The press release only mentions Y/Y+. Thanks.
 

opusman

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...will move to gradually restructure its international tariffs so that fuel surcharges are absorbed into base fares
This of course makes sense and is what should have been done right from the start. The danger is of course that QF has got used to the new level of revenue, so the restructured tariffs end up no cheaper than the total fares today. And then when oil prices go up again as they surely will, a whole new fuel surcharge is suddenly deemed necessary.
 

Standby

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This of course makes sense and is what should have been done right from the start. The danger is of course that QF has got used to the new level of revenue, so the restructured tariffs end up no cheaper than the total fares today. And then when oil prices go up again as they surely will, a whole new fuel surcharge is suddenly deemed necessary.
I suspect you are right. Having said that ALL airlines will jump on that Bandwagon
 

RooFlyer

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Hang on folks ... before we get too excited, lets look at what's actually been announced. Basically no reduction in fares with the reduction in fuel prices and an 'up to' reduction in the cost of Award tickets on 'some routes'. You may in fact see zero change!
Yes, folks, I'm being cynical again (sorry, Red Roo).

Overall fares will not change as a consequence of the surcharge gradually being absorbed into base fares, as prices advertised to customers already include taxes and charges. Qantas will continue to price competitively, with fares moving in line with the broader market.
While global fuel prices have fallen in recent months, international air fares are extremely competitive and are significantly lower than when surcharges were first introduced 10 years ago.
Given the size of the Qantas International network the process to absorb fuel surcharges into international base fares for up to 200 destinations will take time. As overall fares are not changing, customers will not be disadvantaged.
Hmmm ... wouldn't customers expect to be 'advantaged' and not 'not disadvantaged' by falling fuel prices???? Both these quotes are saying "we are NOT lowering our prices even though fuel prices have fallen significantly".


This change to Qantas’ international fare structure is in addition to its regular sales activity. Last week, the airline lowered economy fares to Asia, the US and Europe by more than $300 as part of a sale.
So : "We are not lowering our fares with the decreasing price of fuel, but we have a sale on." Watch as I move the thimbles around. Which one has the relevant fact?


From tomorrow, fuel-related charges that currently apply to Frequent Flyer on Qantas and Jetstar Classic Award redemption bookings will fall by up to $110 in Economy and up to $130 in Premium Economy on some routes for a return flight. Reductions will vary across the network but average around 14 per cent.

Good stuff. But why wouldn't they say "fuel related charges are being abolished". And reductions "up to"? Ever been to a sale and seen signs saying "Prices reduced by up to 50% ... on some routes" And how many items are actually reduced by that amount? Ever been to a store sale with a sale "Prices reduced by up to 50%." Ever counted how many items are actually reduced by that amount?


“Factoring in lower fuel prices, IATA estimates that the net profit airlines make per passenger this year will rise by just $1 compared with last year, from $6 to $7.
That's a 16% increase in profit (not revenue) per passenger !! Not a bad profit increase at any time! But saying its only $1 per passenger makes it sound insignificant, really. I wonder what the figure for Qantas will be, with no reductions in fares in the face of falling fuel prices?
 
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RooFlyer

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Good that it's no longer on ff redemptions although cant help but feel they've been forced into it by virgin (rather than being proactive). Appropriate it's in the base fare (where it should have been years ago!)

Can Red Roo perhaps confirm/refute whether the removal of the surcharges also applies to J/F cabins? The press release only mentions Y/Y+. Thanks.
No, only on some routes of Y/Y+ ;) (Edit: as announced)
 
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RooFlyer

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Airline tickets are cheaper now than ever. The currebt sale is $649 to Singapore . How much do you think they should charge?
I think they should charge the current amount, less most if not all, the amount that fuel has dropped. They put the special surcharge on with increasing fuel charges .. now take it off!!
 

gwynne

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I think they should charge the current amount, less most if not all, the amount that fuel has dropped. They put the special surcharge on with increasing fuel charges .. now take it off!!

You haven't noticed fares dropping in recent weeks? Fuel surcharges do not affect normal fares at all. If a fuel surcharge is applied, the base fare is reduced by the same amount. It's only frequent flyer tickets that fuel surcharges increase the cost for.
 

RooFlyer

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Here's what it means in tangible terms:

View attachment 41361

Thanks ... hmmm ..
1) remember when the fuel charges were announced as larger on J seats .. because they took up proportionally more area? Wonder why the reduction is now LESS for J seats. ;)

2) Those seem to be non 'Emirates' routes. Wonder what that means?

This AusBT article listed the increases in fuel surcharges due to the Emirates tie-up a year ago:


Emirates.JPG
 
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Supersonic Swinger

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Here's what it means in tangible terms:

View attachment 41361
That's still a lot of cash for reward flights (as well as the other fees and taxes) which you don't face in other programs. As RooFlyer has basically said, this looks like smoke and mirrors to make people think "Oh look how wonderful QF are for reducing these fees" while still allowing them a lot of wriggle room to maintain the massive profits which QFF generates.
 

eastwest101

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Looking at the percentage figures - interesting that the most relief from Fuel Surcharges seems to be Aus to USA and Aus to South Africa routes. Sure they are pretty long flights so I guess that makes sense but may also have something to do with decreased traffic (lower AUD, higher US$ and decreased business related traffic to Southern Africa and South America due to lower commodity prices). Areas that seem to have had capacity reductions such as Japan and Asia see smaller decreases in Fuel Surcharges.
 
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