QF Fuel Surcharges... May go down when fuel below $60/barrel for a month

[oz_mark]

That includes the current $31 fuel Fine.

Conceptually, if that sale is still going on 23rd Jan it will drop to $104.

Except the sale goes to 22nd Jan (unless extended). But even so, I think with these fares they work backwards in the claculations.

 

[serfty]

... if that sale is still going on 23rd Jan it will drop to $104.

Specials - Domestic Flights - Sale on Now

Sale on Now

Seats on sale until midnight Monday 22 January 2007 (AEDT) or until sold out.

These one way specials are valid for travel from Thursday 1 February until Thursday 29 March 2007.

Hurry - seats are limited.
Close

 

[JohnK]

Where do you think the share price will go if the offer fails?

Hard to predict. Probably hovering around the $4.00 mark again.

What I think this offer has highlighted is the inadequacy of the current QF board. YMMV.

 

[oz_mark]

Domestic within NZ sales by QF are each Tuesday (and last until following Monday). I don't think QF does emails for these any more (or at least I haven't received one in ages).

Email lobbed in my Inbox a few minutes ago. I must have just seen it online before I got the email....

 

[codash1099]

Email lobbed in my Inbox a few minutes ago. I must have just seen it online before I got the email....

Typical treatment for WA. Make us Wait Awhile

 

[Kiwi Flyer]

No email for me.

 

[QF WP]

The Moderators are taking particular interest in this thread, given the tone of some of the posts.

We would like remind members that all posts should relate to the thread topic and please respect the views of others, even if the views held are different to your own. We appreciate and support healthy robust discussion, until it becomes personal....

 

[Mal]

I have noticed something particular about the last 2 fuel surcharge cuts.

The first (long haul international only IIRC) occured about 1-2 days after Qantas were being beaten in the news about fuel surcharges and why they should be reduced.
Result - $5 reduction.

This time, there has been lots of press over the last couple of days about fuel surcharges and why they should be dropped.
Result $5 reduction (on certain flights).

Hmm. Co-incidence? Maybe. But I'm not too sure....Make up your own mind!

 

[Flashback]

Question.. I have an award flight, which is already booked and fuel fines paid for that will be flown in July 07. Would I have any chance, once this has taken effect on getting $20 refunded? i.e. trip is PER-SYD-AKL, WLG-MEL-PER ($5x4 segments?)

 

[Mal]

Question.. I have an award flight, which is already booked and fuel fines paid for that will be flown in July 07. Would I have any chance, once this has taken effect on getting $20 refunded? i.e. trip is PER-SYD-AKL, WLG-MEL-PER ($5x4 segments?)

Nope. Not really. Would you expect to pay extra if the fines went up? You'd have to cancel the current award and rebook it at a penalty of 5000 points.

Keep in mind that availability may no longer exist on your flights, and there is no guarantee that the flights will end up back in the redemptions buckets.

If you re-routed the flights somehow (and avoided the change fee due to Qantas status) then I think the taxes would be recalculated and you'd receive the refund. Not entirely sure.

 

[serfty]

For $20 it's certainly not worth it.

To get the refund (nett) you would need to:

1) require award availability to still exist on your (or similar suitable flights),

2) Cancel your current bookings, incurring a 5K point per PAX fee.,

3) Book the new itinerary's

As I give 5K points an average base value of $50, there is no way I would do such a thing.

Having edited, I see that I agree with Mal ...

 

[oz_mark]

Interesting idea, and in my opinion not worth it. The cut in the surcharge would have to greater than $5 per sector.

I guess issues like this would encourage QF to reduce the fuel surcharge slowly.

 

[Standby]

I'm interested in others views on the surcharge rollback.
Dont want to revisit the whole "fuel Fines" view of surcharges ...its a cost of business etc and commisionable taxes etc.
Fuel has hit lowish $50ies a barrel.
QF has reduced marginally their surcharge. As mentioned elsewhere other carriers with fuel surcharges like BA have benchmark rates at which the charge goes down/up . This is transparent even if only forced by public opinion.
This week EK wait til fuel prices start to fall then Roll their surcharge into the fare..which they have done without actually reducing the fares for the lower fuel cost . DJ didnt add a fuel surcharge last time but "selectively" increased the fares on certain markets and have publically stated they arent reducing any fares due to lower fuel costs.
It just seems those that dont have a transparant surcharge other than competitive pressure are getting no flack at all for keeping their fares artifically higher than the "increased cost of business" that led them to go on in the first place...I know QF is the biggest carrier here but why the lack of scrutiny in the press and other places for the other carriers....In fact EK was applauded for rolling the surcharge into the fare but the journo didnt realise the fare didnt go down
cheers

 

[serfty]

... In fact EK was applauded for rolling the surcharge into the fare but the journo didnt realise the fare didnt go down ...

Or the journo felt that little bit of information would not assist with any slant they intended for the article.

 

[pauly7]

DJ didnt add a fuel surcharge last time but "selectively" increased the fares on certain markets and have publically stated they arent reducing any fares due to lower fuel costs.
It just seems those that dont have a transparant surcharge other than competitive pressure are getting no flack at all for keeping their fares artifically higher than the "increased cost of business" that led them to go on in the first place...I know QF is the biggest carrier here but why the lack of scrutiny in the press and other places for the other carriers....In fact EK was applauded for rolling the surcharge into the fare but the journo didnt realise the fare didnt go down
cheers

I was going to ask when DJ would cut their fuel fines, but I must have missed when they instead bumped up their airfares..... So they are not moving on their fines?

 

[Standby]

I was going to ask when DJ would cut their fuel fines, but I must have missed when they instead bumped up their airfares..... So they are not moving on their fines?

At the last fuel increase DJ argued that blanket increases would not work on many leisure routes where demand was very 'elastic' ..price goes up ,demand stops.The way they got around it was on selective routes kept their leadin price stable so it didnt look like things had moved and play around with the step up pricepoints above it. A mate whose an agent for a large travel chain said they moved the key business markets up and left leisure markets alone..either way those business markets havent come down

 

[JohnK]

Not sure how much truth is behind this article but I thought it was very interesting reading comparing price of crude oil in $AUD and not $USD.

Since 2000 the price of crude oil has only risen by ~15% in $AUD compared to a rise of ~75% in $USD!

The truth behind Qantas's "fuel surcharge" rort

Date: Friday, 12 January 2007

Adam Schwab writes:

The Smage noted yesterday that barbarian-friendly Australian airline, Qantas, is on track to surpass its record $914 million pre-tax profit this year, courtesy of an easing fuel price and persistent burgeoning fuel surcharges.

Since increasing its surcharges yet again last August, it is estimated that Qantas reaps $370 in fuel surcharges for every return trip to the Europe and $290 for return flights to the US.

The fuel surcharge has compounding benefits. Obviously, it allows Qantas to charge more for flights, while effectively advertising a lower headline price. Second, it allows the airline to pay less commission to travel agents (so important that travel agents are now suing Qantas) and significantly lessen the value of frequent flier points (a so called "free" frequent flier trip isn’t free at all – punters pay as much as $300 in surcharges and "taxes" merely to go to Singapore using points).

Even worse is the fact that in Australian dollar terms, oil isn’t even that much more expensive than is was back in 2000 – when there was no fuel surcharge (the surcharges weren’t introduced until 2004). In November 2000, the average price of crude oil was US$31.16 per gallon. However, in Australian dollar terms, the cost was around AUD$60 per gallon (with the Australian dollar buying around US$0.52). Currently oil is trading at less than US$55 or around $AUD70 per gallon.

More...

 

[QF WP]

Plummeting jet fuel costs haven't stopped consumers paying between 10 and 15 per cent more for domestic airfares than at the same time last year, says a report...

 

[Mal]

Cathay Pacific have reduced their surcharges a little:

Fuel surcharge
All Cathay Pacific tickets issued on / after 01 April, 2007 for travel on / after this date will be subjected to new fuel surcharge:

* USD53.80 / HKD420 / CAD63.30 / NZD79.00 (From USD56.20 / HKD438 / CAD66.10 / NZD82.50 ) for flights between Hong Kong and Southwest Pacific, North America, Europe, Africa, Middle East and Indian Subcontinent, and between Bangkok and Dubai.
* USD13.10 / HKD102 / NZD19.50 (From USD13.60 / HKD106 / NZD20 ) for flights not mentioned above, including flights to / from Japan, itineraries originated from Korea as well as flights between New York and Vancouver.
* Codeshare flights are also subjected to the respective fuel surcharge beginning 01 December, 2006.

Exceptions are codeshare trains with SNCF.

The surcharge will apply per flight sector, including children and infant fares. For tickets sold in Canada, the surcharge will be collected in Canadian dollars.

Time for Qantas to also reduce their surcharge a little?

 

[simongr]

Or even a lot