Airlines urged to cut fuel taxes

[markis10]

Qantas, Emirates, Virgin Australia and other airlines are under pressure to reduce fuel surcharges on tickets after an 18 per cent drop in jet kerosene prices over the past four months.
Australia's largest travel agent, Flight Centre, said airlines had been quick to increase surcharges when jet fuel costs rose but were slow at reducing them when costs fell.
"History shows that surcharges are much more likely to rise than decrease," Flight Centre spokesman Haydn Long said. "If it was government-controlled and reviewed monthly, you would get a more legitimate amount."
Since June, the spot price for jet fuel in Singapore has fallen from $US125 a barrel to about $US103.




Read more: Qantas, Emirates and Virgin Australia urged to cut surcharges as fuel price sinks

 

[MEL_Traveller]

I'm sure the airlines will already tell us they have reduced fares - just not the fuel surcharge component. Looking at some of the QF specials they are the lowest I have seen (for QFi) in a long time. The advantage however would be for award seats.

 

[medhead]

Or they'll claim they screwed up the hedge position.

 

[harvyk]

I'm sure the airlines will already tell us they have reduced fares - just not the fuel surcharge component. Looking at some of the QF specials they are the lowest I have seen (for QFi) in a long time. The advantage however would be for award seats.

I'd rather higher "airfares" and lower "fuel surcharge". Net different = $0, unless you're flying on an award in which case you'd have a substantial saving and thus awards would almost be worthwhile again in all cabins.

The reality is that it's in an airlines advantage to have as much of the airfare covered by "fuel surcharge" as possible. Despite the fact that fuel is a pretty integral part of getting a plane from A to B and thus should be included as part of the base price of the ticket.

 

[Ansett]

High Taxes and surcharges benefits the airline as it means less commission to the TA who I understand get paid based on the value excluding Taxes and Charges. I cant see airlines changing this any time soon.

I also suspect the drop in the AUD will be used as an argument against the drop in spot pricing.

Airlines seem to have a multitude of excuses around Increases in taxes etc and IMHO their should be a proper investigation done on this by ACCC for example.

 

[MEL_Traveller]

I'm waiting for the airlines to tell us they can't simply reduce fuel surcharges because 'it would be confusing' to passengers!!!

 

[Himeno]

I don't see why Australia can't have something like Japan.
Have a price range chart, review the average price every 2 months and match it to the fuel cost which sets the surcharge amount for the next 2 months.

 

[Mal]

High Taxes and surcharges benefits the airline as it means less commission to the TA who I understand get paid based on the value excluding Taxes and Charges. I cant see airlines changing this any time soon.

A court case a couple of years changed that afaik. Cookies must be enabled. | The Australian

 

[Ansett]

I don't see why Australia can't have something like Japan.
Have a price range chart, review the average price every 2 months and match it to the fuel cost which sets the surcharge amount for the next 2 months.

Because that would be simpler and fairer and heavens forbid we cant have that lol

 

[Aussie_flyer]

A court case a couple of years changed that afaik. Cookies must be enabled. | The Australian

yes, agents make commission on fuel now

 

[Ansett]

yes, agents make commission on fuel now [/QUO


So that's why the Fuel Fine is so High Now LOL

 

[JohnK]

Surprise, surprise.

Actually I am not surprised. Fuel surcharges are a sneaky way of increasing airfares. The same can be achieved by incorporating them into the base airfare.

 

[farstar]

Virgin charge no fuel surcharge on VFF which is all I care about.

 

[Ansett]

Virgin charge no fuel surcharge on VFF which is all I care about.

But what is the earn rate and the Burn Rate compared to QF. IE how many flights on VA would one have to compared to QF to get the same points? and how many points need to be redeemed.

Lets pick 2 routes

MEL- BNE

and MEL-SIN

Lets do the comparisons on the basis of earning points on MEL-SYD on a Red E deal and the VA equivalent for earning and redemption and the cost of taxes