When do fuel surcharges end?
 

Went gas prices went up, AC instituted "fuel surcharges" as a presumably temporary price increase. I notice that fuel is less than in was a year ago. Fuel surcharges seem to remain. They should be eliminated on the spot or revealed to be a fraud. Reminds me of the comment from Starbucks about the decreased price in coffee beans not leading to a lower price for the coffee in their stores - because most of their expense isn't the coffee. But they raise prices when coffee bean prices go up. Is Air Canada Air Starbucks for fuel policies?

Large buyers of such things as fuel oil don't face the same price changes as "gas at the pump" and have long term supply contracts. It will be a few months before AC -- and other airlines -- benefit from the change in fuel prices. And there still may be a short supply of aviation fuels compared to those used in our cars. So don't expect the surcharge to come off too soon. AC also has to make up for the period when it didn't have the surcharge, but prices were higher than it had originally budgeted for. Can't you guys understand the basic economics of running a business: you have to take in more than you spend! If you don't, you don't stay in business very long. Asked Canadian Airlines. You can ***** about the price of flying, but prices are not likely to come down very soon on the discount front. If you want cheaper fares, you will have to get used to last minute booking on webspecials.

I think the "bïtch" is the alleged "temporary" nature of the surcharge. No one expects it to ever come off. One day it'll be rolled into the price of the ticket, awaiting the next opportunity to impose a "temporary fuel surcharge."

If they just came out and said, expenses such as fuel have increased, therefore fares will increase, I for one would have no complaint.

Wasn't YYZT2 'temporary permanent' as well?

D

As i understand it, Airlines buy fuel on contract, and its an agreed price for the period of the contract.

When AC put the surcharge on, it was because of the contract fuel price,the changes take time to have effect, shareholder is right, the change in fuel prices are not like the pump, if it was it would be crazy or impossible to price an airline ticket.

AC are just trying to balance the books, I am pretty sure they all ready have a contract price in place for a new term at a lower rate, Hence the temporary surcharge.

[This message has been edited by Ferrari (edited 07-05-2001).]