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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 3, 2014, 1:17 am
  #121  
V10
 
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Originally Posted by BigRedBears
Oil came down ~40% from its peak. Do you think airlines will decrease scam YQ surcharges? What can we do as consumers to force them to do that? Should we appeal to DOT, etc?

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No - because as others have mentioned, these charges now have almost nothing to do with the oil price. They're mostly about enabling financial benefits for the airlines.

The right question to ask in this case is why this isn't just rolled up into the overall price of the ticket.
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Old Dec 3, 2014, 5:52 am
  #122  
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Originally Posted by BigRedBears
Oil came down ~40% from its peak. Do you think airlines will decrease scam YQ surcharges? What can we do as consumers to force them to do that? Should we appeal to DOT, etc?

Discuss
Only buy the cheapest possible fares so that airlines relying on loyalty are obliged to depress their prices
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Old Dec 3, 2014, 7:18 am
  #123  
 
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How many times do people need to be told YQ is no longer a fuel surcharge before it finally sinks in!?
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Old Dec 3, 2014, 7:23 am
  #124  
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Originally Posted by callum9999
How many times do people need to be told YQ is no longer a fuel surcharge before it finally sinks in!?
However it is computed, a reduction in airline fuel costs (once current hedging contracts expire if they were made) would be expected to depress prices.
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Old Dec 3, 2014, 7:27 am
  #125  
 
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Did any else, you know, find this quote from Willie Walsh, you know, really difficult to follow?

https://dl.dropboxusercontent.com/u/...2014.26.02.png
Last edited by Prospero; Dec 7, 2014 at 2:46 am Reason: Oversized image converted to link
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Old Dec 3, 2014, 7:28 am
  #126  
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Originally Posted by Calchas
However it is computed, a reduction in airline fuel costs (once current hedging contracts expire if they were made) would be expected to depress prices.
Not necessarily, it depends on the market you are operating in.
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Old Dec 3, 2014, 7:39 am
  #127  
 
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Originally Posted by callum9999
How many times do people need to be told YQ is no longer a fuel surcharge before it finally sinks in!?
I thought in legal documents filed this year (the DOT Edelman case), BA stated it is a fuel expense despite what the website calls it.
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Old Dec 3, 2014, 8:08 am
  #128  
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Originally Posted by Paralytic
Did any else, you know, find this quote from Willie Walsh, you know, really difficult to follow?
It is a transcript from an on-the-spot question, not a prepared speech.

If you listen to the audio it was easy to understand and his story about the hedging analyst provoked a lot of laughter, which is sadly not reflected in the transcript.
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Old Dec 3, 2014, 8:24 am
  #129  
 
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Originally Posted by Calchas
However it is computed, a reduction in airline fuel costs (once current hedging contracts expire if they were made) would be expected to depress prices.
Expected by who?
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Old Dec 3, 2014, 8:25 am
  #130  
 
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Originally Posted by rrgg
I thought in legal documents filed this year (the DOT Edelman case), BA stated it is a fuel expense despite what the website calls it.
I thought they said fuel prices were a factor in deciding what the level of YQ should be - not that it's solely a fuel surcharge?

If I'm wrong then my apologies!
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Old Dec 3, 2014, 8:31 am
  #131  
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Originally Posted by callum9999
Expected by who?
Taking the opposite line to the argument I made earlier by anyone who believes that free competition puts downward pressure on prices.
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Old Dec 3, 2014, 8:46 am
  #132  
 
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Originally Posted by callum9999
Expected by who?
Certainly not by anyone who witnessed BA getting the BMI slots.

FWIW the "consolidation" of the US domestic market is certainly pushing prices up, not least of the part of AA & US.
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Old Dec 3, 2014, 8:55 am
  #133  
 
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Originally Posted by Calchas
It is a transcript from an on-the-spot question, not a prepared speech.

If you listen to the audio it was easy to understand and his story about the hedging analyst provoked a lot of laughter, which is sadly not reflected in the transcript.
I know, but, you know, when people pad what they're saying, you know, it typically suggests, you know, they're choosing their words very carefully.
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Old Dec 3, 2014, 9:06 am
  #134  
 
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Originally Posted by Calchas
Taking the opposite line to the argument I made earlier by anyone who believes that free competition puts downward pressure on prices.
Oh I see, though there is of course a middle ground. Competition in the market does lower prices to a degree, but it's not a perfect competitive environment. I'm not sure I'd have been able to get a lot of the bargains I've had across the Atlantic if this intense competition didn't exist (though my £120 LUX-LGA-LHR on BA/AA can only be an error fare!).

Originally Posted by Paralytic
I know, but, you know, when people pad what they're saying, you know, it typically suggests, you know, they're choosing their words very carefully.
Or they don't have the answer 100% memorised off the top of their head so want to make sure they're giving an accurate answer - without the connotations you seem to be making that they're trying to mislead without being technically incorrect!
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Old Dec 3, 2014, 11:12 am
  #135  
 
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Originally Posted by V10
The right question to ask in this case is why this isn't just rolled up into the overall price of the ticket.
So they can generate revenue on reward tickets!
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