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Old Oct 20, 2010 | 5:49 am
  #8  
yulred
 
Join Date: Aug 2010
Posts: 3,130
Originally Posted by YEG USER
Where in Europe are you pricing? IIRC there are certain european countries that require all-in pricing. Could it be a case of this?

I'd discuss my wish for all in pricing in Canada, but this has been discussed on this forum over and over and over again.

I don't know about collusion in airline prices for fuel surcharges, but there was an example of YYZ-FRA provided earlier. In this case there likely is "collusion" as LH and AC have a joint venture and revenue share on all Canada-Germany routes. I can't speak about HKG or what airlines might be involved in the collusion.
Ran inverse return searches on 3 euro routes, because my immediate family lives in Europe so I was trying to figure out if it worked out cheaper for them to come visit me (as opposed to me going and visiting them). They get more vacay to recover from jetlag, so I figured I could pass up a trip to Europe, having spent the better part of the last 3 years there.

Heres what I figured:

LHR - YYZ - Fuel - 190 NavCan - 0
YYZ - LHR - Fuel - 250 NavCan - 30
Explanation: Residents of Canada are fatter/heavier and need directions. Non-residents of Canada are thin and can find their way home.


CDG - YYZ Fuel - 256 NavCan - 0
YYZ - CDG Fuel - 260 NavCan - 30
Explanation: Unsurprisingly, residents of Canada have a hard time figuring out hte route to France too. On the bright side, the easy availability of good cheese has made the French almost as heavy as Canadians.

FRA - YYZ - Fuel - 256 NavCan - 0
YYZ - FRA - Fuel - 260 NavCan - 30
Explanation: Same as above. Substitute French cheese with Sauerkraut and Beer.

So there you have it. I can 'understand' LH/AC collusion but AF/AC?

Just for kicks, I also tried YYZ - HKG

HKG - YYZ Fuel $132
YYZ - HKG Fuel $190 (Can't remember, but the NavCan would be either 30 or 40)

I'm firing these off memory right now, so do feel free to check the exact values yourself and correct them if neccessary, but I think you get the gist.

Factor in the generally lower base prices (AC can't really charge Europeans what it charges us, since they will simply go elsewhere on a different airline) and the price differences generally go well above the $35 mark indicated here.

I would even go so far as to argue that the fuel surcharge on LHR - YYZ will go up to $250 once AI stops serving the route on Oct 31 (going YYZ-DEL direct). AI currently charges approximately $200 on YYZ-LHR as Fuel, I suspect the inverse would be about the same. a $60 - $90 difference on a $ 700- $800 dollar ticket can be a dealbreaker for some.
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