I didn't realise that every Australian farmer stopped producing broccoli for snap freezing because of the impending carbon tax (NEITHER DID I). Why hasn't Tony Abbott been jumping all over that one (MAYBE BECAUSE HE READS MORE CAREFULLY THAN SOME PERHAPS - RAM)? Doesn't really impact me as all the fruit and veges we buy are 100% Australian, but assuming I had a choice between a local product and an O/S one I have a natural bias towards the former that far outweighs the amount of difference a carbon tax makes (WRONG ACTUALLY, if Fed Gov spin was factual about China & carbon pricing - local product produces a fraction of carbon that Chinese product does - RAM).
On the other hand if Virgin are 10% cheaper because of better control of costs (including the impact of a carbon tax) I don't particularly care how the airfare breaks down, do you(YES -RAM)? If Qantas really want to call out the supposed pollution tax proportion of the airfare, then I would like them to also have a column for "Executive Salaries" and "Corporate Lawyers" so that I can see all the negatives on the balance sheet(and column for cost transfers from Jetstar - RAM).
You missed the point, my post did not say the carbon tax had anything to do with the exit of Australian grown broccoli for snap freezing was due to the carbon tax.
That is something you said that is baseless.
The point made was that "incentives" making (some) air fares more expensive can have unforeseen results.
The point you make about a more efficient airline offering better prices is spot on.
But in Q's case they have been loading extra costs onto QI and not Jetstar International or domestic (see Q fuel surcharge announcements of increased fuel surcharge for all QI routes but only some Jetstar).
Selective pricing within one airline's own operations has nothing to do with a Carbon Tax, fuel costs but senior management trying to engineer an outcome. Making QI's price uncompetitive vs Jetstar's will definitely get that outcome.
Subsequent outcome is clear - QI not profitable (falling ticket sales/mkt share/reduced destinations) and Jetstar super profitable (rising ticket sales with lower surcharges/more destinations).
Given fuel burn is normally greatest (& least efficient) on takeoff and climbing to cruse altitude then on a mileage basis short haul domestic should have a much higher fuel surcharge and CARBON TAX cost / kms than international flights.
Yet that is not the ratio of fuel surcharge nor carbon tax is it that Q is charging Q passengers vs Jetstar? The US fuel surcharge is $340 one way yet trans-Tasman is $30. Flying times difference factor of about 4, surcharge ratio 11.
On air fare break down - Yes I care greatly. Here is a Jetstar Syd/Mel rtn for July 19/20
[TABLE="class: dijitReset fareDetails"]
[TR]
[TD]
Fare 1: Carrier JQ HHOW SYD to MEL
Passenger type ADT, one-way fare, booking code H
Covers SYD-MEL (Economy)
[/TD]
[TD="class: farePrice"]AU$79.05[/TD]
[/TR]
[TR]
[TD]
Fare 2: Carrier JQ NHOWA MEL to SYD
Passenger type ADT, one-way fare, booking code N
Covers AVV-SYD (Economy)
[/TD]
[TD="class: farePrice"]AU$109.78[/TD]
[/TR]
[TR]
[TD] Australian Goods & Services Tax (UO) [/TD]
[TD="class: farePrice"]AU$18.90[/TD]
[/TR]
[TR]
[TD] Australian Safety & Security Surcharge (WG) [/TD]
[TD="class: farePrice"]AU$1.81[/TD]
[/TR]
[TR]
[TD] Australian Domestic Passenger Service Charge (QR) [/TD]
[TD="class: farePrice"]AU$10.87[/TD]
[/TR]
[TR]
[TD] Australian Domestic Passenger Service Charge (QR) [/TD]
[TD="class: farePrice"]AU$7.41[/TD]
[/TR]
[TR]
[TD] Australian Safety & Security Surcharge (WG) [/TD]
[TD="class: farePrice"]AU$1.81[/TD]
[/TR]
[TR]
[TD]
[/TD]
[TD="class: fareSubTotalRule"] [/TD]
[/TR]
[TR]
[TD] Subtotal per passenger [/TD]
[TD="class: farePrice"]AU$229.80[/TD]
[/TR]
[TR]
[TD] Number of passengers [/TD]
[TD="class: farePrice"]x1[/TD]
[/TR]
[TR]
[TD]
[/TD]
[TD="class: fareTotalRule"] [/TD]
[/TR]
[TR="class: fareTotal"]
[TD="class: totalLabel"] Total airfare & taxes [/TD]
[TD="class: farePrice"]AU$229.80[/TD]
[/TR]
[/TABLE]
- This ticket is non-refundable.
- Changes to this ticket will incur a penalty fee.
- No changes may be made to this ticket after departure.
Fare construction
SYD JQ MEL 79.05HHOW JQ SYD 109.78NHOWA AUD 188.83 END XT 18.28QR 18.90UO 3.62WG
Here is Q SYD/FRA rtn for July 19 rtn July 28
[TABLE="class: dijitReset fareDetails"]
[TR]
[TD]
Fare 1: Carrier QF OJFLTR3 SYD to FRA
Passenger type ADT, round trip fare, booking code O
Covers SYD-SIN (Economy), SIN-FRA (Economy)
[/TD]
[TD="class: farePrice"]AU$725.00[/TD]
[/TR]
[TR]
[TD]
Fare 2: Carrier QF HHSS FRA to SYD
Passenger type ADT, round trip fare, booking code H
Covers FRA-SYD (Economy)
[/TD]
[TD="class: farePrice"]AU$1,714.50[/TD]
[/TR]
[TR]
[TD]
QF YQ surcharge (YQ)
[/TD]
[TD="class: farePrice"]
AU$7.00[/TD]
[/TR]
[TR]
[TD] Singapore Passenger Service Charge (SG) [/TD]
[TD="class: farePrice"]AU$14.60[/TD]
[/TR]
[TR]
[TD] Singapore Passenger Security Service Charge (OO) [/TD]
[TD="class: farePrice"]AU$4.80
[/TD]
[/TR]
[TR]
[TD]
QF YQ surcharge (YQ)
[/TD]
[TD="class: farePrice"]
AU$760.00 = Fuel Surcharge
[/TD]
[/TR]
[TR]
[TD]
QF YR surcharge (YR)
[/TD]
[TD="class: farePrice"]
AU$30.00[/TD]
[/TR]
[TR]
[TD] Australian Passenger Movement Charge (AU) [/TD]
[TD="class: farePrice"]AU$55.00[/TD]
[/TR]
[TR]
[TD] Australian Int'l Passenger Service Charge (WY) [/TD]
[TD="class: farePrice"]AU$25.92[/TD]
[/TR]
[TR]
[TD] Australian Int'l Passenger Service Charge (WY) [/TD]
[TD="class: farePrice"]AU$25.92[/TD]
[/TR]
[TR]
[TD] German Airport Security Tax (DE) [/TD]
[TD="class: farePrice"]AU$8.10[/TD]
[/TR]
[TR]
[TD] German Passenger Service Charge (RA) [/TD]
[TD="class: farePrice"]AU$38.30[/TD]
[/TR]
[TR]
[TD] German Air Transport Tax (OY) [/TD]
[TD="class: farePrice"]AU$53.60[/TD]
[/TR]
[TR]
[TD]
[/TD]
[TD="class: fareSubTotalRule"] [/TD]
[/TR]
[TR]
[TD] Subtotal per passenger [/TD]
[TD="class: farePrice"]AU$3,463.24[/TD]
[/TR]
[TR]
[TD] Number of passengers [/TD]
[TD="class: farePrice"]x1[/TD]
[/TR]
[TR]
[TD]
[/TD]
[TD="class: fareTotalRule"] [/TD]
[/TR]
[TR="class: fareTotal"]
[TD="class: totalLabel"] Total airfare & taxes [/TD]
[TD="class: farePrice"]AU$3,463.24[/TD]
[/TR]
[/TABLE]
- This ticket is non-refundable.
- Changes to this ticket will incur a penalty fee.
Fare construction
SYD QF X/SIN QF FRA Q24.56 687.94OJFLTR3 QF SYD Q24.56 1660.40HHSS NUC 2397.46 END ROE 1.017522 XT 55.00AU 51.84WY 4.80OO 14.60SG 8.10DE 53.60OY 38.30RA 767.00YQ 30.00YR
So if you dig on the Q airfare you find the surcharges (Oh look a carbon tax and fuel surcharge) but with Jetstar nothing shown but air fare.
If you make a points booking you pay the surcharges & taxes on top of the points. Doing a comparison on QI award bookings - it was cheaper for me to buy a QI business class (BA code share) LHR-FRA ticket online than the surcharges and taxes on a QI classic award booking for exact same seat and flight - go figure? Mind you I never got the FF points for it and after the third attempt I gave up.
This is a great (terrible depending on viewpoint) example a SYD/LAX rtn July 18 July 29 fare. Good way to avoid award point QI redemptions and lower patronage even further.
[TABLE="class: dijitReset fareDetails"]
[TR]
[TD]
Fare 1: Carrier QF OLSP2 SYD to LAX
Passenger type ADT, round trip fare, booking code O
Covers SYD-LAX (Economy)
[/TD]
[TD="class: farePrice"]AU$305.00[/TD]
[/TR]
[TR]
[TD]
Fare 2: Carrier QF QLSP2 LAX to SYD
Passenger type ADT, round trip fare, booking code Q
Covers LAX-SYD (Economy)
[/TD]
[TD="class: farePrice"]AU$430.00
[/TD]
[/TR]
[TR]
[TD]
(YQ)
[/TD]
[TD="class: farePrice"]
AU$680.00 So rewards booking - surcharge is more than fare component = RIP OFF
[/TD]
[/TR]
[TR]
[TD]
(YR) [/TD]
[TD="class: farePrice"]
AU$30.00[/TD]
[/TR]
[TR]
[TD] USDA APHIS Fee (XA) [/TD]
[TD="class: farePrice"]AU$5.10[/TD]
[/TR]
[TR]
[TD] US Immigration Fee (XY) [/TD]
[TD="class: farePrice"]AU$7.10[/TD]
[/TR]
[TR]
[TD] US Customs Fee (YC) [/TD]
[TD="class: farePrice"]AU$5.60[/TD]
[/TR]
[TR]
[TD] Australian Passenger Movement Charge (AU) [/TD]
[TD="class: farePrice"]AU$55.00[/TD]
[/TR]
[TR]
[TD] Australian Int'l Passenger Service Charge (WY) [/TD]
[TD="class: farePrice"]AU$25.92[/TD]
[/TR]
[TR]
[TD] US International Arrival Tax (US) [/TD]
[TD="class: farePrice"]AU$17.00[/TD]
[/TR]
[TR]
[TD] Australian Int'l Passenger Service Charge (WY) [/TD]
[TD="class: farePrice"]AU$25.92[/TD]
[/TR]
[TR]
[TD] US International Departure Tax (US) [/TD]
[TD="class: farePrice"]AU$17.00[/TD]
[/TR]
[TR]
[TD] US September 11th Security Fee (AY) [/TD]
[TD="class: farePrice"]AU$2.60[/TD]
[/TR]
[TR]
[TD] US Passenger Facility Charge (XF) [/TD]
[TD="class: farePrice"]AU$4.60[/TD]
[/TR]
[TR]
[TD]
[/TD]
[TD="class: fareSubTotalRule"] [/TD]
[/TR]
[TR]
[TD] Subtotal per passenger [/TD]
[TD="class: farePrice"]AU$1,610.84[/TD]
[/TR]
[TR]
[TD] Number of passengers [/TD]
[TD="class: farePrice"]x1[/TD]
[/TR]
[TR]
[TD]
[/TD]
[TD="class: fareTotalRule"] [/TD]
[/TR]
[TR="class: fareTotal"]
[TD="class: totalLabel"] Total airfare & taxes [/TD]
[TD="class: farePrice"]AU$1,610.84[/TD]
[/TR]
[/TABLE]
Different cost allocation will engineer different P/L results.
"From 5 April 2012,
Qantas will also increase the fuel surcharge for Qantas Frequent Flyer Classic Award redemption tickets by $4 for domestic travel (from $12 to $16) and by $10 for Trans-Tasman flights (from $20 to $30).
Jetstar will also increase fares on some routes within both its Singapore and Australian markets, as well as some service charges, in response to higher fuel costs."
About Qantas - Media Room - Media Releases - QANTAS RESPONDS AGAIN TO FUEL PRICES