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Does British Airways Executive Club overcharge Fuel surcharge on flight from HKG?

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Does British Airways Executive Club overcharge Fuel surcharge on flight from HKG?

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Old Mar 16, 2015, 4:41 pm
  #1  
AHO
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Does British Airways Executive Club overcharge Fuel surcharge on flight from HKG?

Sorry if it has been discussed before. I couldn't find this info through search function.

My question: Does British Airways Executive Club overcharge Fuel surcharge (YQ) on flight to/from Hong Kong?

As many of you already know, Hong Kong's Civil Aviation Department regulates how much airlines can charge Fuel surcharge on their flight to/from Hong Kong.
At moment (during March 2015), Fuel surcharge on long haul flight is only 187 HKD (approx. 23 EUR) per flight.




Source: http://www.cad.gov.hk/english/fuel_surcharge.htm

However, British Airways Executive Club charges Fuel surcharges differently depending on the choice of the airlines.

Cathay Pacific on Hong Kong -> London: 36 EUR (for both taxes & Fuel surcharge)
British Airways on Hong Kong -> London: 258 EUR (for both taxes & Fuel surcharge)
Finnair on Hong Kong -> Helsinki: 238 EUR (for both taxes & Fuel surcharge)
I wonder if this isn't a breach of law in Hong Kong. Do you have any idea?
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Old Mar 16, 2015, 4:52 pm
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BA can charge whatever YQ they want on any route - it is their charge after all. If you feel that the overall cost is too much (including the YQ) then have a look at the alternatives.

Can you point us to where the regulation is in HKG which caps YQ please, apart from Argentina I am unaware of any restrictions placed on how much any carrier can charge in YQ.
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Old Mar 16, 2015, 4:56 pm
  #3  
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Btw, the breakdown for the cash charge for a J reward HKG-LHR is:

Air Passenger Departure Tax - Hong Kong GBP 10.30
Carrier surcharge GBP 185.00
-------------------
Total GBP £195.30
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Old Mar 16, 2015, 4:59 pm
  #4  
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Originally Posted by KARFA
Can you point us to where the regulation is in HKG which caps YQ please,
You can find it in my post both as pictures and as a link.

Originally Posted by KARFA
BA can charge whatever YQ they want on any route - it is their charge after all. If you feel that the overall cost is too much (including the YQ) then have a look at the alternatives.
Even though if it's the case, it doesn't mean that BA is allowed to overcharge Fuel surcharge on a Finnair flight, well?
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Old Mar 16, 2015, 5:06 pm
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Originally Posted by AHO
As many of you already know, Hong Kong's Civil Aviation Department regulates how much airlines can charge Fuel surcharge on their flight to/from Hong Kong.
At moment (during March 2015), Fuel surcharge on long haul flight is only 187 HKD (approx. 23 EUR) per flight.

However, British Airways Executive Club charges Fuel surcharges differently depending on the choice of the airlines.

Cathay Pacific on Hong Kong -> London: 36 EUR (for both taxes & Fuel surcharge)

British Airways on Hong Kong -> London: 258 EUR (for both taxes & Fuel surcharge)

Finnair on Hong Kong -> Helsinki: 238 EUR (for both taxes & Fuel surcharge)

I wonder if this isn't a breach of law in Hong Kong. Do you have any idea?
Using a UK BAEC account, the cash element for the CX booking is £17 which broadly corresponds to the CAD figure of HKD 187.

So I wonder whether the rule applies only to tickets issued in Hong Kong, and whether what is happening is that the ticket for travel on CX is being issued by BA in Hong Kong whereas the tickets for travel on BA or AY are being issued in London (or somewhere in the eurozone in the OP's case), and thus not subject to the CAD's rule?

Alternatively, that may be a limitation or requirement made by CX on BA.

A cash ticket for travel on BA has the HKD 187 figure applied to it. We know that ba.com issues tickets in the country of origin of travel, so that would be consistent with satisfying a requirement (if that is what it is) that tickets issued in Hong Kong can only have HKD 187 of surcharge applied.
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Old Mar 16, 2015, 5:08 pm
  #6  
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Originally Posted by AHO
You can find it in my post both as pictures and as a link.
That link just takes me to a page which shows the summary of what every carrier charges - i.e. the table you copied in to your post. Where does it say no carrier can charge more than 187 HKD?
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Old Mar 16, 2015, 5:15 pm
  #7  
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Originally Posted by KARFA
That link just takes me to a page which shows the summary of what every carrier charges - i.e. the table you copied in to your post. Where does it say no carrier can charge more than 187 HKD?
I think it's more clearly stated here:-
Aviation passenger fuel surcharges

The Civil Aviation Department (CAD) today (February 23) announced the passenger fuel surcharges for the period from March 1 to 31 of 2015.

The maximum levels of fuel surcharges for March 2015 will be $42 for short-haul flights and $187 for long-haul flights, which represent a decrease of about 48 per cent from the current maximum levels for both short and long haul flights. The applicable surcharge levels are based on the ticket issue date. The approved fuel surcharge levels of individual airlines have been published on the CAD's website (www.cad.gov.hk/english/fuel_surcharge.htm).

Passenger fuel surcharges seek to allow airlines to partially recover the increase in operational costs due to fluctuations in aviation fuel prices. As the aeronautical authority in Hong Kong, the CAD considers and approves fuel surcharge applications from the airlines in accordance with bilateral Air Services Agreements.

Passenger fuel surcharges are reviewed by the CAD on a monthly basis. In last month's review, the maximum surcharge levels for short-haul and long-haul flights announced by the CAD were $81 and $356 respectively.

Ends/Monday, February 23, 2015
Issued at HKT 15:41

NNNN
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Old Mar 16, 2015, 5:19 pm
  #8  
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Originally Posted by KARFA
That link just takes me to a page which shows the summary of what every carrier charges - i.e. the table you copied in to your post. Where does it say no carrier can charge more than 187 HKD?
http://www.cad.gov.hk/english/faq.html#fuel_surcharge (see #71)


Originally Posted by CAD
71. Why do airlines levy the passenger fuel surcharge? What are the considerations for determining the surcharge? Do airlines levy the surcharge outside Hong Kong?

Owing to the fluctuation in aviation fuel prices, airlines levy the passenger fuel surcharge to partially recover the increase in their operating costs.

In accordance with the existing bilateral air services agreements, airlines should consider all relevant factors including their operating costs, passengers' interest, the tariffs charged by other operators on the same routes etc in determining the fuel surcharge and should only levy the surcharge with the approval of the relevant aeronautical authorities. CAD will take into account changes in the prices of aviation fuel, the justifications provided by airlines and other relevant factors when considering fuel surcharge applications.

Airlines levy the passenger fuel surcharge in other places as well. At present, the average passenger fuel surcharges for short haul services and long haul services on comparable routes outside Hong Kong are about HK$288 and HK$1231 respectively.
Example prices HKD 288 and HKD 1.231 are not updated on FAQ.
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Old Mar 16, 2015, 5:20 pm
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Originally Posted by Globaliser
I think it's more clearly stated here:-
Thanks. That is what I was trying to find. As you say, possibly only applies to tickets issued in HKG.
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Old Mar 16, 2015, 6:00 pm
  #10  
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After some researches, I figured out as follows.

Airlines which BAEC overcharges Fuel surcharge more than CAD model on BAEC award:
  • British Airways (BA)
  • Finnair (AY)
  • Malaysia Airlines (MH): Fuel surchage on Hong Kong -> Kuala Lumpur charges also approx. 70 EUR. Cathay Pacific on same route charges only 5 EUR so it's according to CAD model.

Airlines which BAEC charges Fuel surchage according to CAD model on BAEC award:
  • Cathay Pacific (CX)
  • Dragonair (KA)
  • Japan Airlines (JL): Fuel surcharge on Hong Kong -> Tokyo is approx. 5 EUR which corresponds 42 HKD and it's same amount as on Cathay Pacific flight on same route.
  • Qatar Airways (QR): Fuel surcharge on Hong Kong -> Doha is only 38 EUR for both taxes and Fuel surcharges together and it's same amount as on Cathay Pacific flight on same route.

Unverified airlines:
  • SriLankan Airlines (UL): because of error message
  • Qantas (QF): because of error message
  • American Airlines (AA): I couldn't find any award seat
  • Royal Jordanian (RJ): I couldn't find any award seat
  • S7 Airlines (S7): I couldn't find any award seat

Airlines which do not fly to/from Hong Kong:
  • Iberia (IB)
  • LAN (LA)
  • TAM (JJ)

Last edited by AHO; Mar 16, 2015 at 11:29 pm
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Old Mar 16, 2015, 6:35 pm
  #11  
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Originally Posted by AHO
After some researches, I figured out as follows.

Airlines which charge Fuel surcharges on BAEC award:

...

Airlines which do not charge Fuel surchages on BAEC award:

...
Do you mean that these are lists of airlines for which BAEC charges a fuel surcharge when you obtain a BAEC award for travel on that airline?

If so, I'm not sure that the headings are correct. If you use BAEC to get an award for travel on CX from HKG to LHR, you do have to pay a HKD 187 fuel surcharge.

Further, the HKD 42 = € 5 that you see for the award ticket on JL is probably the HKD 42 fuel surcharge permitted by the CAD. The difference between that and HKD 187 is that a Hong Kong - Japan award is probably being counted as short-haul, while HKG-LHR or HKG-DOH (on CX or QR) is being counted as long-haul.

So it wouldn't seem accurate to say that there's no fuel surcharge on awards issued for travel on CX, JL, KA or QR.
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Old Mar 16, 2015, 8:31 pm
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Originally Posted by Globaliser
Using a UK BAEC account, the cash element for the CX booking is £17 which broadly corresponds to the CAD figure of HKD 187.

So I wonder whether the rule applies only to tickets issued in Hong Kong, and whether what is happening is that the ticket for travel on CX is being issued by BA in Hong Kong whereas the tickets for travel on BA or AY are being issued in London (or somewhere in the eurozone in the OP's case), and thus not subject to the CAD's rule?

Alternatively, that may be a limitation or requirement made by CX on BA.

A cash ticket for travel on BA has the HKD 187 figure applied to it. We know that ba.com issues tickets in the country of origin of travel, so that would be consistent with satisfying a requirement (if that is what it is) that tickets issued in Hong Kong can only have HKD 187 of surcharge applied.
I think that sums it up perfectly. I suspect BA cash tickets would be issued ex HKG and be bound by that regulation, whereas BA avios tickets maybe issued elsewhere?

This mirrors the experience I've had with MH enrich tickets vs cash tickets ex HKG as well as TPE - the surcharges are different because enrich tickets are issued ex KUL.
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Old Mar 16, 2015, 9:09 pm
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Originally Posted by KARFA
BA can charge whatever YQ they want on any route - it is their charge after all. If you feel that the overall cost is too much (including the YQ) then have a look at the alternatives.
When flying to the US and marketing to US customers, that is simply not true. Unless something has changed the US DOT has requirements about how they calculate a fuel charge. And "if you feel the overall" requirements are "too much then have a look at alternative" destinations for your aircraft.
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Old Mar 16, 2015, 11:26 pm
  #14  
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Originally Posted by Globaliser
Do you mean that these are lists of airlines for which BAEC charges a fuel surcharge when you obtain a BAEC award for travel on that airline?
Sorry my wording was incorrect.
It should be:
Originally Posted by AHO
Airlines which BAEC overcharges Fuel surcharge more than CAD model on BAEC award:

Airlines which BAEC charges Fuel surchage according to CAD model on BAEC award:
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Old Mar 16, 2015, 11:36 pm
  #15  
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Originally Posted by rrgg
When flying to the US and marketing to US customers, that is simply not true. Unless something has changed the US DOT has requirements about how they calculate a fuel charge. And "if you feel the overall" requirements are "too much then have a look at alternative" destinations for your aircraft.
I think that is still being contended, and can be circumvented by listing a carrier surcharge rather than a simple fuel surcharge, and US DOT is yet to investigate. It doesn't appear airlines feel unduly constrained by the US DOT so far.

http://aviationblog.dallasnews.com/2...rcharges.html/

http://qz.com/356651/airlines-are-st...omething-else/

http://www.businesstravelcoalition.c...calls-for.html

http://www.travelpulse.com/news/airl...urcharges.html
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