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THE FREQUENT FLYER GAZETTE   ::   JULY 2006

 

CONTENTS ::
 
1. Fuel Surcharge
2. Member's Talk
3. Travel News
4. Credit Card Chaos

Editors Note ::
 
Welcome to the July edition of the Frequent Flyer Gazette.

This month we explore the ethics of some tricky tactics used by Qantas to conceal the real fuel surcharge you are paying on your flights. We also highlight a new financial service that makes choosing a frequent flyer friendly credit card much easier - and it�s free!

This month we also bring you all the national and international travel news and more insights, knowledge and advice from our valued members.

Until next time, Happy Flying.

Leah
Editor, Frequent Flyer Gazette






  
1. FUEL SURCHARGE FURY
 

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Last month the media revealed what many of us have known or suspected for some time: The Qantas� fuel surcharge is hidden within another levy. Qantas currently charges domestic passengers a $31 fuel surcharge per journey leg, but the fee is imposed as part of an insurance levy. Qantas has raised its fuel surcharge on domestic flights by $5 recently due to oil soaring to $US70 a barrel.

Admittedly, Qantas has publicly recognised the increases but fails to list them in the breakdown of extra taxes and charges when passengers purchase a ticket. This has been fobbed off by a Qantas spokesperson as merely an administrative arrangement. They claim it's administratively more efficient for the fuel and insurance levy to be bundled together under the one charge. Given the high public anxiety about high fuel costs, it's questionable whether administrative workability is the motivating factor.

Qantas are undoubtedly seeking to placate such fears and are doing so by omitting some essential information. Australian Consumers' Association deputy chief executive Norm Crothers said it was ''absolutely outrageous'' that the fuel surcharge was included as part of the insurance levy.

The rising price of the fuel surcharge is not the issue; the need for transparency and accountability by airlines in the allocation of fares is the issue in need of reform.

What this means: Qantas Frequent Flyer points now worth less than a cent!
Using frequent flyer points for the supposedly �free� ticket also attracts the fuel surcharge: a return flight from Sydney to Melbourne booked on frequent flyer points requires you to pay the 16,000 points plus $101.87 in �extra� charges.

As you can purchase a Red e-Deal ticket for about $240 (including taxes), the 16,000 frequent flyer points used to purchase the ticket is valued at just $138 ($240 - $102) or just 0.86c per point! Compare this to the $2 you need to spend on most credit cards to earn that point, any you�ll discover just how outrageous the whole system is!

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2. MEMBER'S TALK
 

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Flight Attendant�s Favourite�s

One member ASKED why some passengers receive preferential treatment by flight attendants. It seems to be all about status. According to one member, platinum status secures a five minute chat and copious amounts of wine!

Star Alliance vs. One World

One newbie asks our seasoned experts to cut through all the red tape and dissect the pros and cons of both Star Alliance and One World. The general consensus seems to be that the alliance best for you depends on your circumstances. Find out more HERE.

Delaying Dramas

Our members DISCUSS how they've delayed a flight single handedly. Security dramas, long-lunches and idle wanderings seem to be the main causes. The evil-eye from fellow passengers appear to be the only real consequence.

The Truth about Airline Food

It can be bad and it can be terrible, airlines are not generally known for their culinary prowess. FIND OUT if there is any hope of getting a decent meal on a long-haul flight.

False Fares Fa�ade

Standard airline industry practice is to advertise a low fare rate, excluding the additional taxes and fuel levys payable on purchase of a ticket. Our members DISCUSS the unfair advertising of fare prices and suggest airlines should be more forthcoming with the �real� price of flying.

Are Baggage Handlers bludgers?

One member DESCRIBES the average baggage handler as lazy, with a complete disregard for others property. What do you think: the terrible truth or a misguided stereotype?

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3. TRAVEL NEWS
 
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For the latest travel news, check out our new Travel News service
 - travel news from leading agencies, updated continually

Powder Problem at Adelaide Airport

A mysterious yellow powder caused delays on a Singapore airlines flight to Adelaide. The powder coated passenger�s luggage as it was removed from the cargo hold. There was speculation among passengers that the powder was paprika or some other spice carried in the cargo hold on a previous flight.

More than 500 passengers from four flights were held in quarantine for up to six hours while hazardous material crews attempted to identify the substance.

Airbus Delay

Airbus is expected to provide Qantas with stand-in planes because of the late delivery of the super jumbo, the A380. Qantas also expects to be paid generous compensation for the delay.

Qantas have ordered 12 planes and due to problems with the wiring they will be at least 12 months late. The airline initially expected it would get its first plane this October but now must wait until October-December next year.

The Flying Kangaroo will remain an Aussie

Despite months of speculation and Qantas� continued gripe with foreign ownership restrictions, Qantas will not leave Australian hands. The companies� chief executive Geoff Dixon told a transport conference in Canberra last month that there was no intention for Qantas to leave Australia.

However, he continued to lobby for parliament to change the foreign ownership restrictions claiming they made it hard for Qantas to raise the necessary funds to expand. As a result, Dixon claimed Qantas will be forced to remove around 1/5 of its management support positions.

Jetstar to Allocate Seating

Jetstar have backed down on their "first-in first-served" policy, allowing domestic passengers to choose seats in advance. Jetstar will be introducing allocated seating from October to bring its domestic operations in line with its trans-Tasman and proposed long-haul international flights.

The change makes Jetstar the first domestic carrier to allow passengers to reserve a seat months in advance. People travelling on domestic services after October 29 will be able to specify their seat, through either the airline's website or its call centre. Those who don't pre-select will be allocated a seat and receive it when they check in.

Jetstar have assured consumers that prices will not rise as a result of the change.

Winter Weather Causes Delays

As winter sets in, passengers have been experiencing long delays as a result of heavy fog around Sydney and Melbourne. Delays of up to 12 hours were experienced by many a disgruntled passenger last month.

Airlines advise passengers where possible to book an earlier flight to allow sufficient time to cater for potential delays caused by weather and remember� patience is a virtue.

   


4. SORTING OUT CREDIT CARD CHAOS - FOR FREE!
 
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Financial service firm ARTOG has launched a free service to help Australian�s choose the right credit card for their spending needs.

ARTOG's online service allows customers to sort, compare and then rank every major credit card in Australia into categories that the customer deems important for their requirements. This service is particularly useful for frequent flyers, in the never-ending quest to maximise points.

Their website (artog.com.au) allows users to select the characteristics they are looking for in a credit card; it then selects the appropriate cards and ranks their appropriateness for the individual consumer.

 

� THE AUSTRALIAN FREQUENT FLYER, 2006