Oil price at 4 year low but still V high fuel surcharges
Oct 10, 2014, 6:47 am
#16
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But for all passengers, when the YQ and fare components are now added together the total amount should now be lower than it was when oil was considerably higher.
Oct 10, 2014, 6:54 am
#17
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one could also argue that the cost of processing card payments will not have gone up recently but they still increased the charge.
Interchange Fee regulation (and capping of such fees) will reduce that cost in the future (there's some discussion on this in a separate thread) so will be interesting to see if BA will continue with "surcharging" (unless this is made illegal under the Payment Service Directive II).
Interchange Fee regulation (and capping of such fees) will reduce that cost in the future (there's some discussion on this in a separate thread) so will be interesting to see if BA will continue with "surcharging" (unless this is made illegal under the Payment Service Directive II).
Oct 10, 2014, 6:55 am
#19
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"A rose by any other name would smell as sweet." Or to put it another way: if it looks like duck, quacks like a duck, it's a duck. BA or any other airline can dance around terminology until they are blue in face. The fact of the matter is when surcharges began it was in the face of rising fuel prices. The terminology was just changed and a wide grouping of surcharge fees was created.
Do I expect BA to reduce its fuel surcharge? No, not immediately as the purchase of aviation fuel is different than what most consumers see in every day life. However, if there is a longer downward and established trend, then I would expect to see some movement (though not bloody likely).
H
Do I expect BA to reduce its fuel surcharge? No, not immediately as the purchase of aviation fuel is different than what most consumers see in every day life. However, if there is a longer downward and established trend, then I would expect to see some movement (though not bloody likely).
H
Oct 10, 2014, 6:56 am
#20
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No, because airline pricing is based on customer willingness to pay. Aside from a trivial marginal cost the operating expenses, which include the fuel, are irrelevant.
Oct 10, 2014, 6:56 am
#21
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Semantics aside, Base fare + YQ is what BA pockets. Base fare + YQ + tax is what passengers pay. Reducing/removing YQ would lower the price of tickets, reduce revenue or cause BA to increase the base fare.
Why? The cost to BA may have reduced for fuel (not considering futures/hedging by the airlines, BA doesn't just pay the 'at the pump' price) but why would they pass this on to the customer?
Why? The cost to BA may have reduced for fuel (not considering futures/hedging by the airlines, BA doesn't just pay the 'at the pump' price) but why would they pass this on to the customer?
Oct 10, 2014, 7:05 am
#22
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Do I expect BA to reduce its fuel surcharge? No, not immediately as the purchase of aviation fuel is different than what most consumers see in every day life. However, if there is a longer downward and established trend, then I would expect to see some movement (though not bloody likely).
H
Oct 10, 2014, 7:10 am
#23
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So it is simply a change in what it is called - so unless there is no longer any direct link (as you claim) at all with the price of fuel it is still very much a fuel surcharge!
Or will BA try and con everyone as per your attempt to and state it is now a "carrier surcharge" with no link to the cost of fuel therefore no need to be reduced in line with the falling oil price?
Although somehow I sense if fuel rockets again, the story will change back to being there is an influence in YQ with the cost of fuel therefore it will go up.
Or am I just being cynical?
Or will BA try and con everyone as per your attempt to and state it is now a "carrier surcharge" with no link to the cost of fuel therefore no need to be reduced in line with the falling oil price?
Although somehow I sense if fuel rockets again, the story will change back to being there is an influence in YQ with the cost of fuel therefore it will go up.
Or am I just being cynical?
You can hope EC introduces some new legislation preventing it. The same way they took care of the credit card transaction charges, roaming etc, it may be on the list.
Here in Brazil there is no YQ added to tickets originating from Brazil. There are only fare and government taxes. That results in low redemption costs (although BA tries to scam these too). It also has the disadvantage that I've several times seen prices Europe-Brazil-Europe as low as 300 EUR, but Brazil-Europe-Brazil never goes bellow 1000 EUR.
Oct 10, 2014, 7:21 am
#25
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Oct 10, 2014, 7:22 am
#26
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Meanwhile it isn't really any of your concern how a company decides to break down its costs. You see the total price before you decide to pay, just the same as you would in Tesco when buying your beans. Now if Tesco decided/was forced to display at checkout that 25% of the price of your beans went to their own YQ fund (for their rival museum) I really don't see why that is anyone's concern.
Oct 10, 2014, 7:26 am
#27
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Oct 10, 2014, 7:32 am
#28
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Well, they changed the name to "carrier surcharge" EXACTLY because they did not lower it when the fuel prices dropped. So it is now some accounting gimmick used to their advantage.
You can hope EC introduces some new legislation preventing it. The same way they took care of the credit card transaction charges, roaming etc, it may be on the list.
You can hope EC introduces some new legislation preventing it. The same way they took care of the credit card transaction charges, roaming etc, it may be on the list.
Here in Brazil there is no YQ added to tickets originating from Brazil. There are only fare and government taxes. That results in low redemption costs (although BA tries to scam these too). It also has the disadvantage that I've several times seen prices Europe-Brazil-Europe as low as 300 EUR, but Brazil-Europe-Brazil never goes bellow 1000 EUR.
Do you really think that YQ goes away just because someone legislates that it has to go away? Other charges will simply be brought in to replace it in another area.
Oct 10, 2014, 7:34 am
#29
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This is stretching the truth a little as far as redemption flights are concerned.
There's no published table of redemption prices including taxes/fees/carrier charges as far as I know. Knowing the YQ on a LHR-NYC-LHR tells you very little about the YQ on a NYC-LHR-NYC. Transparent pricing this is not.
There's no published table of redemption prices including taxes/fees/carrier charges as far as I know. Knowing the YQ on a LHR-NYC-LHR tells you very little about the YQ on a NYC-LHR-NYC. Transparent pricing this is not.
Oct 10, 2014, 7:38 am
#30
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This is stretching the truth a little as far as redemption flights are concerned.
There's no published table of redemption prices including taxes/fees/carrier charges as far as I know. Knowing the YQ on a LHR-NYC-LHR tells you very little about the YQ on a NYC-LHR-NYC. Transparent pricing this is not.
There's no published table of redemption prices including taxes/fees/carrier charges as far as I know. Knowing the YQ on a LHR-NYC-LHR tells you very little about the YQ on a NYC-LHR-NYC. Transparent pricing this is not.