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Fuel Surcharge Increase effective 16 Dec

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Old Dec 14, 2010, 6:51 am
  #16  
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Originally Posted by mlb7171
They should fix a new "level" now, with fuel subsidy at ZERO.
Could not agree more. It was introduced on a temporary basis whilst fuel remained comparitively high - amusingly around the $45 PB mark IIRC. Now oil has consistently remained around the $75-$90 PB mark for many months it is time it is reset to zero and build into the base price.

As a "temporary" surcharge it really is a farce to keep calling it that now...
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Old Dec 14, 2010, 7:17 am
  #17  
 
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Originally Posted by BOH
...It was introduced on a temporary basis whilst fuel remained comparitively high... As a "temporary" surcharge it really is a farce to keep calling it that now...
And income tax was introduced in 1798 as a temporary measure to help pay for the Napoleonic wars.
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Old Dec 14, 2010, 8:12 am
  #18  
 
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Originally Posted by 710 77345
No, BA actually advertises more prices than Ryanair without taxes and surcharges.
I don't recall seeing BA advertise prices without taxes and surcharges, but then my experience is mainly limited to the UK site of ba.com

Where do they advertise in this manner?
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Old Dec 14, 2010, 8:29 am
  #19  
 
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Advertising in the UK has to be all-inclusive, but these rules don't apply elsewhere. BA, like its competitors, advertise prices without fuel surcharges whenever it can!

The front page of ba.com in the US currently advertises:


and the site offers Y returns between New York and London for $300 - http://www.britishairways.com/travel...penxtype=click
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Old Dec 14, 2010, 8:54 am
  #20  
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For those who wish to complain about BA's YQ practise. Please refer to:

http://www.oft.gov.uk/consumer-advice/oft-and-cd/

It will take a lot of people to complain together as class case to force Office of Fair Trading to investigate BA's fuel surcharge practise.

If Office of Fair Trading can find that the BA's fuel surcharge are helping company income statement rather than individual transaction expense, BA can be fined very heavily.

Alternatively EU have same consumer body available. But it takes someone who can lobby the invistigation successfully to make EU looking into the measure.

Charge consumer more to cover up company loss is not the fair business practice. If BA could not prove fuel surcharge is charged fairly towards the transaction expense (i.e. the expense occured for the particular flight the consumer is taking), it will be against the terms. It will take a professional lawyer team to fight for it. But consumer have ground to do so. As peope in airline business all know that the fuel surcharge is not calculated base on real time cost.
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Old Dec 14, 2010, 9:13 am
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Originally Posted by 710 77345
Advertising in the UK has to be all-inclusive, but these rules don't apply elsewhere. BA, like its competitors, advertise prices without fuel surcharges whenever it can!

The front page of ba.com in the US currently advertises:


and the site offers Y returns between New York and London for $300 - http://www.britishairways.com/travel...penxtype=click
Yeah. When you click on the "find this fare link" it becomes $206 each way, not including government taxes and fees, which becomes $599.18, split into $190 for the ticket price and $409.18 for the taxes, fees, charges and surcharges. Glad everyhting is so clear and transparent.
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Old Dec 14, 2010, 10:46 am
  #22  
 
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Originally Posted by mlb7171
Which other businesses are allowed to add costs like this?
$2.25 Dry Cleaners?
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Old Dec 14, 2010, 11:50 am
  #23  
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Originally Posted by mlb7171
Which other businesses are allowed to add costs like this?
Originally Posted by 710 77345
$2.25 Dry Cleaners?
I can honestly say I have never, ever had a fuel surcharge on any Dry Cleaning bill
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Old Dec 14, 2010, 11:58 am
  #24  
 
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Originally Posted by Cluster One
Except that, unlike Ryanair, BA's headline prices are always fully inclusive prices.
Really? So:

Seat selection is included? - errr, not if you're not elite
Fuel surcharges? oh yeah, that's the topic of this thread
the list goes on...
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Old Dec 14, 2010, 12:25 pm
  #25  
 
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Originally Posted by tristan727
so if were almost bout to book a flight, should we book it now...or will it make no diff. now somehow..ie. they'd apply it retro-actively?
I would book now, they make it clear it is effective on Thurs so i suspect that to be the case and it is not now factored in.

We may be changing one name of a 4 person reward booking. Should i need to, i will have to cancel the entire booking as i have used 2 x CV's(so 4 x £15pp cancellation fee), plus rebook at the adittional cost of £20pp so £140 total for a name change
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Old Dec 14, 2010, 12:58 pm
  #26  
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Thought it might be interesting to look at the actual correlation between oil prices and the fuel surcharge, and did a spot of data crunching this afternoon (the Christmas slow down is upon us....). Hadn't realised it has been two years since the fuel surcharge last shifted!



Now, the above doesn't factor in exchange rates, and uses Brent Crude as a proxy for fuel costs, rather than Jet-A, but it's interesting how fuel prices in 2006-2007 were broadly similar to they are now, yet the surcharge has crept higher.

I'd also forgotten about the days of a single fuel surcharge across all cabins, all journey lengths. Who'd have thought that £2.50 would rise quite so rapidly...


Sources: US Energy Information Administration and British Airways
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Old Dec 14, 2010, 2:17 pm
  #27  
 
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Excellent graph. Thank you very much for your effort.
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Old Dec 14, 2010, 2:18 pm
  #28  
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Originally Posted by Shuttle-Bored

Now, the above doesn't factor in exchange rates, and uses Brent Crude as a proxy for fuel costs, rather than Jet-A, but it's interesting how fuel prices in 2006-2007 were broadly similar to they are now, yet the surcharge has crept higher.
The exchange rate might well be significant in this though

Originally Posted by Shuttle-Bored
I'd also forgotten about the days of a single fuel surcharge across all cabins, all journey lengths. Who'd have thought that £2.50 would rise quite so rapidly...
That's what makes it so farcical. By my reckoning the total fuel surcharge should not exceed £20 per ticket if it was intoduced at £2.50 initially and had risen by the same ratio as the oil price. That's even being generous with an exchange rate fluctuation too
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Old Dec 14, 2010, 2:51 pm
  #29  
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Originally Posted by BOH
The exchange rate might well be significant in this though
Your wish, etc, etc, etc... Adjusted for USD/GBP:



(Rates culled from the web, so not necessarily accurate!)
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Old Dec 14, 2010, 3:24 pm
  #30  
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If you've got nothing better to do tonight you could index it to the year the fuel charge was introduced...
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