Qantas / Jetstar REMOVE domestic fuel surcharges

[AlphaVictor]

This just in.....

QF/JQ eliminate domestic fuel surcharges.

Qantas Airways and Jetstar have both just announced they will be removing fuel surcharges on domestic Australian flights, for tickets issued on or after 01 Jan 2009.

The announcement means Qantas & QantasLink will discard their $18 per sector fuel levy, while Jetstar will do away with its $9 per sector fuel surcharge.

Fuel surcharges on QF/JQ international flights will remain, however the Qantas Group says it will continue to monitor oil and jet fuel prices closely.

 

[futaris]

Qantas to Remove Domestic Fuel Surcharges

 

[oz_mark]

Good to see. Shame they waited till DJ did it before doing it themselves. Would have been more impressed if they had done this a week ago, but nevertheless....

 

[oz_perspective]

Good to see. Shame they waited till DJ did it before doing it themselves. Would have been more impressed if they had done this a week ago, but nevertheless....

Exactly. Glad to see them make a positive move though.

 

[rwatts]

Good to see. Shame they waited till DJ did it before doing it themselves. Would have been more impressed if they had done this a week ago, but nevertheless....

Agreed. I mostly appreciate DJ for the competition they provide to QF. Even with the flak QF have been receiving in the media over separate surcharges and taxes, I dont believe they would have taken this step without the lead from DJ.

Richard.

 

[AlphaVictor]

So, if I'm doing my sums correctly, what is now a $82 one-way sale-fare from Sydney to Melbourne (on the current sale for departures 13 Jan to 07 Apr, book n pay by 5 Jan 09) should fall to $64 for bookings made from the 1st of January 2009? (after the $18 surcharge is removed). Pretty good for MEL!

Let's wait and see

 

[Standby]

Agreed. I mostly appreciate DJ for the competition they provide to QF. Even with the flak QF have been receiving in the media over separate surcharges and taxes, I dont believe they would have taken this step without the lead from DJ.

Richard.

This maybe the chicken or the egg discussion but I think QF was the first mover by reducing base fares back in Oct by about 3%.that lead to DJ cut in Fuel in early Nov then QF doing 2 surcharge reductions in late Nov and again just before Xmas then DJ got rid of them alltogether followed by QF.
Either way that means the QF sale fare to BNE on 1st Jan from $72 to 53-54.....and SYDMEL to about $65 one way....yikes

 

[nlagalle]

I wonder what the points charge will reduce to on reward flights where you pay by points? Nothing in the announcement about that...

 

[oz_mark]

This maybe the chicken or the egg discussion but I think QF was the first mover by reducing base fares back in Oct by about 3%.that lead to DJ cut in Fuel in early Nov then QF doing 2 surcharge reductions in late Nov and again just before Xmas then DJ got rid of them alltogether followed by QF.
Either way that means the QF sale fare to BNE on 1st Jan from $72 to 53-54.....and SYDMEL to about $65 one way....yikes

Based on current sale prices MELADL should drop from $62 to $44!

...and for those who like to connect, there won't be such a financial penalty in doing so!

 

[garyjohn951]

Thank Goodness for Competition.

Long Live all the Airlines

 

[Saab34]

Based on current sale prices MELADL should drop from $62 to $44!

...and for those who like to connect, there won't be such a financial penalty in doing so!

Good God. cheaper than TT!

Would not suprise me if they kept didnt drop the entire surcharge of the sale fare at current, instead just pushing up the base fare a little....But they might drop it down that low, as it would be a nice PR move to kick start this "no surcharge campaign".

I do remember AirAsia using this No Fuel Surcharge as a marketing ploy, and I have a feeling JQ will be bringing it to our TV screens, exactly like all those thousands of ads about "Best LCC', "Double Difference"....

and If JQ/DJ drop this surcharge off the current Sale Fares, well we are talking $29 MEL-AVV, even a $41 from SYD-BNE!

 

[Platy]

Perhpas someone smarter than me can explain whether there is any justification for the QF claim (embedded in the quoted article) that the fuel surcharge for international flights must remain because the basic fuel costs for international flights are higher than those for domestic!!!

 

[stuartfaz]

I do remember AirAsia using this No Fuel Surcharge as a marketing ploy, and I have a feeling JQ will be bringing it to our TV screens, exactly like all those thousands of ads about "Best LCC', "Double Difference"....

Ads like that would only work for JQ if it's a point of difference with other airlines, which, given the unique circumstances of this week, it isn't.

and If JQ/DJ drop this surcharge off the current Sale Fares, well we are talking $29 MEL-AVV, even a $41 from SYD-BNE!

Still waiting to see what's going to happen with DJ tomorrow. I have a flight to SYD in Feb that needs booking, and if the surcharge does come off the GO! fares (which I doubt, but who knows) then that's an $82 return trip

But as several here have noted in the threads on this issue, I wouldn't care if they took the surcharge and put it right back onto the base fare. That's where fuel costs should've been recovered from the start.

Just glad that domestic flying looks like a fuel surcharge free zone in 2009.

we are talking $29 MEL-AVV

Something tells me this flight still may not be worth it

 

[Mal]

Woohoo! Now to see what is revealed when the smoke and mirrors are removed!

 

[simongr]

Perhpas someone smarter than me can explain whether there is any justification for the QF claim (embedded in the quoted article) that the fuel surcharge for international flights must remain because the basic fuel costs for international flights are higher than those for domestic!!!

I made this exact same point in the DJ thread on a similar vein. That was ignored by the DJ spokesperson and as we have no QF spokesperson we will get less of an answer here.

 

[Platy]

I made this exact same point in the DJ thread on a similar vein. That was ignored by the DJ spokesperson and as we have no QF spokesperson we will get less of an answer here.

The answer may simply be they don't have to unless the competition does it first!!!

Must be possible theoretically to calculate cost per passenger of typical required fuel comparing say a 737-800 travelling BNE-SYD with a 747-400 travelling SYD-SIN or similar assuming an average (85%?) loading.

Can any pilots out there assist with some basic data to enable a back of an envelope calculation???

 

[Standby]

The answer may simply be they don't have to unless the competition does it first!!!

Must be possible theoretically to calculate cost per passenger of typical required fuel comparing say a 737-800 travelling BNE-SYD with a 747-400 travelling SYD-SIN or similar assuming an average (85%?) loading.

Can any pilots out there assist with some basic data to enable a back of an envelope calculation???

Not a pilot but whilst the price of AV gas overall is $XX dollars it can vary greatly from country to country to fuel is bought in just like buying in City and the bush.
On a more important note happy new year QF prices have dropped 12 hours earlier... SYDBNE $52, SYDMEL $62 MELADL $42 on sale of course

 

[medhead]

The answer may simply be they don't have to unless the competition does it first!!!

Must be possible theoretically to calculate cost per passenger of typical required fuel comparing say a 737-800 travelling BNE-SYD with a 747-400 travelling SYD-SIN or similar assuming an average (85%?) loading.

That may be the simple and most obvious answer.

One test without calculation is to use the marketing spin for the new aircraft coming on stream. (i.e. A380, the Boeing ones 777?) These have been often quoted as being = or more economical per pax as a hybrid car or small car. Roughly 5 or 6 litres per 100 km per pax.

SYD-BNE ~ 1000 km, per pax 50 or 60 litres, if fuel is over priced by 10 cents that's $5. SYD-FRA ~15000 km, 750 to 900 litres, @ 10 cents extra = $75 to $90 per pax

All things being equal, I guess that the airline justification is that they can absorb the fuel loss on domestic flights because average distance per pax is quite small, so loss per pax is quite small. But go international and average distance is probably an order of magnitude greater, hence they need a fuel surcharge.

 

[N860CR]

Interestingly, the fares haven't dropped by the total amount of the fuel surcharge (as we thought). The surcharges are gone, but even on the sale fares there is a slight increase in the base fare. I'm booking a few ROK-BNE-SYD-BNE-ROK and overall each booking has ~$30 added onto the base fare.

 

[simongr]

One test without calculation is to use the marketing spin for the new aircraft coming on stream. (i.e. A380, the Boeing ones 777?) These have been often quoted as being = or more economical per pax as a hybrid car or small car. Roughly 5 or 6 litres per 100 km per pax.

SYD-BNE ~ 1000 km, per pax 50 or 60 litres, if fuel is over priced by 10 cents that's $5. SYD-FRA ~15000 km, 750 to 900 litres, @ 10 cents extra = $75 to $90 per pax

All things being equal, I guess that the airline justification is that they can absorb the fuel loss on domestic flights because average distance per pax is quite small, so loss per pax is quite small. But go international and average distance is probably an order of magnitude greater, hence they need a fuel surcharge.

You are joking surely? International flights have higher fares so extra fuel costs are built into that. It is not about the distance it is the underlying profitability and competition that affects QF's decision to remove the fuel surcharge.