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Oil price at 4 year low but still V high fuel surcharges

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Oil price at 4 year low but still V high fuel surcharges

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Old Dec 15, 2014, 9:38 am
  #181  
 
Join Date: Feb 2012
Programs: BA LifetimeGold GGL/CCR
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Originally Posted by SinoBritAsia
Well I'd like to see the fuel saving benefits (and I strongly suspect IAG are clearly just pocketing the benefits), go towards accelerating the retirement of older, dirtier aircraft - or a stronger set of airlines BA/IB/VY with lower debt in light of the potential headwinds in the global economy.
What about the fuel saving benefits go to a nice bonus for the management. Short term management = short term bonus. These guys really deserve it. They downgrade the complete BA product and they get away with it!
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Old Dec 15, 2014, 2:52 pm
  #182  
 
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Originally Posted by Kgmm77
Wirelessly posted (iPhone 3G: Mozilla/5.0 (iPhone; CPU iPhone OS 8_1_1 like Mac OS X) AppleWebKit/600.1.4 (KHTML, like Gecko) Version/8.0 Mobile/12B435 Safari/600.1.4)

I thought they weren't fuel surcharges and hasn't been for a while?
So there's no reason why it remains a separate surcharge. It should just be included as part of the base fare.
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Old Dec 15, 2014, 3:24 pm
  #183  
 
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Originally Posted by bafan
So there's no reason why it remains a separate surcharge. It should just be included as part of the base fare.
There are several reasons they do not:

* corporate discounts are off the base fare only
* surcharges are generally not taxed the same way as the base fare
* more flexibility in fares by charging disproportionate surcharges on various routes and even on different directions
* and of course, charging surcharges on award seats (though they could arguably just ask for more avios if someone wanted to pay less cash, but clearly BA wants as much cash as possible to pay down debt and to issue a dividend).

For what it's worth, I think the dividend is a bad idea, when they really need to finish modernizing their fleet to stay competitive, but I'm sure they are focused on increasing the share price as much as possible in the short term.
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Old Dec 15, 2014, 3:51 pm
  #184  
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But we know that this is just nonsense. It's such nonsense to think that people don't see through this.
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Old Dec 15, 2014, 4:07 pm
  #185  
 
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Originally Posted by LondonElite
But we know that this is just nonsense. It's such nonsense to think that people don't see through this.
You keep saying that, but what makes you think BA expect you to? Why would they care that you can "see through" the scheme that they specifically tell you about every time you get a flight quotation and/or booking?

It's not there to make you happy, it's there to increase BA revenue - and I'd be willing to wager it's doing a pretty good job.
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Old Dec 15, 2014, 4:08 pm
  #186  
 
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Originally Posted by LondonElite
But we know that this is just nonsense. It's such nonsense to think that people don't see through this.
Indeed. If oil was free BA would have some excuse for why a charge was necessary.
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Old Dec 15, 2014, 10:27 pm
  #187  
 
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Originally Posted by callum9999
, it's there to increase (..) revenue - and I'd be willing to wager it's doing a pretty good job.
Just as an aside, not all schemes "to increase revenue" are necessarily a) a good idea, b) successful in the longer term, and/or c) actually legal.
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Old Dec 16, 2014, 2:25 am
  #188  
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Originally Posted by UKtravelbear
They should just be honest and bung it in the base fare for cash tickets and call it a 'redemption fee' for reward tickets.
I agree. Just roll out RFS on longhaul charging GBP 500 for CW/F and be done with it.
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Old Dec 16, 2014, 5:50 am
  #189  
 
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According to Bloomberg, WTI now at $54, Brent at $59.

Oil goes up, fuel surcharge goes up.

Oil goes down, fuel surcharge ... pays for the dividend and management's bonus?

Enjoy redeeming your Avios, folks!
shorthauldad is offline  
Old Dec 16, 2014, 6:02 am
  #190  
 
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No different than here in Canada where when the oil price goes up the gasoline price at the pump immediately goes up. When the oil price comes down there is quite a lag between in the downward price at the pump. The latter I understand,the former is an obvious price gouge. Someone did a calculation using AC's similar to BA rip off fuel surcharges before they also changed the term to a carrier surcharge and the "fuel" surcharges charged to passengers added up to more than the actual cost of the fuel for the flight.
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Old Dec 16, 2014, 6:17 am
  #191  
 
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Old Dec 16, 2014, 6:34 am
  #192  
 
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Originally Posted by shorthauldad
Just as an aside, not all schemes "to increase revenue" are necessarily a) a good idea, b) successful in the longer term, and/or c) actually legal.
I didn't say all schemes were, I said I'd wager THIS scheme does.

Originally Posted by shorthauldad
According to Bloomberg, WTI now at $54, Brent at $59.

Oil goes up, fuel surcharge goes up.

Oil goes down, fuel surcharge ... pays for the dividend and management's bonus?

Enjoy redeeming your Avios, folks!
How many times do you have to be told? IT IS NOT A FUEL SURCHARGE.
callum9999 is offline  
Old Dec 16, 2014, 6:45 am
  #193  
 
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Originally Posted by callum9999
How many times do you have to be told? IT IS NOT A FUEL SURCHARGE.
So why does BA have a surcharge at all ? It makes no sense, unless it is to make more profit than it otherwise (lawfully and, under normal accounting rules) properly would.
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Old Dec 16, 2014, 6:48 am
  #194  
 
Join Date: May 2011
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Originally Posted by bafan
So why does BA have a surcharge at all ? It makes no sense, unless it is to make more profit than it otherwise (lawfully and, under normal accounting rules) properly would.
How on Earth does a private company making more profit not make sense!?

Companies exist solely to get as much of your money as it possibly can. I'm shocked that's news to some people.
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Old Dec 16, 2014, 6:48 am
  #195  
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Originally Posted by callum9999
I didn't say all schemes were, I said I'd wager THIS scheme does.



How many times do you have to be told? IT IS NOT A FUEL SURCHARGE.
so what are IAG Talking about then????

IAG Group said it would not lower fuel surcharges at present

British Airways dont have one, so whether IAG lower their fuel surcharge or not, then it makes no odds to BA....
GavT_london is offline  


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