Oil price at 4 year low but still V high fuel surcharges
#181
Join Date: Feb 2012
Programs: BA LifetimeGold GGL/CCR
Posts: 1,140
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.
#182
Join Date: May 2009
Location: London
Programs: BAEC
Posts: 2,741
So there's no reason why it remains a separate surcharge. It should just be included as part of the base fare.
#183
Join Date: Dec 2009
Location: Arizona
Programs: BA (GGL G4L), AA (Gold), HH (Diamond); Marriott (Gold)
Posts: 3,011
* 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.
#185
Join Date: May 2011
Posts: 2,379
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.
#187
Join Date: Apr 2012
Location: not far from MUC
Posts: 6,620
#188
FlyerTalk Evangelist
Join Date: May 2007
Programs: BA Gold
Posts: 12,046
#190
Join Date: Aug 2002
Location: YYZ
Programs: BA Gold/Marriott Gold/HH Diamond/IC Plat Amba
Posts: 5,992
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.
#192
Join Date: May 2011
Posts: 2,379
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!
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!
#193
Join Date: May 2009
Location: London
Programs: BAEC
Posts: 2,741
#194
Join Date: May 2011
Posts: 2,379
Companies exist solely to get as much of your money as it possibly can. I'm shocked that's news to some people.
#195
Original Poster
Join Date: Oct 2004
Programs: BA Gold
Posts: 1,009
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....