Distribution & Development Levy
Aug 13, 2019, 11:31 am
#1
Original Poster
Join Date: Mar 2012
Location: SYD
Programs: QF Plat, BA GGL, VA Silver, SQ Gold, IHG Gold, HH Diamond, Accor Plat, Hertz Pres Circle
Posts: 406
Distribution & Development Levy
It appears that BA avios redemptions on QF now get hit with a Distribution & Development Levy of 12.50 USD per segment.
Does anyone know what this is for?
Does anyone know what this is for?
Aug 13, 2019, 12:09 pm
#3
Join Date: May 2010
Location: Oxon, UK
Programs: Mucci des canapes, Skywards Gold, BAEC Gold, IC Plat Amb, Accor Gold
Posts: 1,948
I got charged £9.50pp on an Avios booking made at the weekend between Brisbane and Hamilton Island, clearly shown as a BA charge and distinct from the Australian tax and airport levies.
Aug 13, 2019, 1:01 pm
#4
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Australia Goods And Services Tax GST (UO) £15.60
Australia Safety And Security Charge Departure (WG) £3.10
Australia Passenger Service Charge Domestic Arrival (QR) £15.60
Carrier-imposed surcharge (YR) £9.80
Australia Safety And Security Charge Departure (WG) £3.10
Australia Passenger Service Charge Domestic Arrival (QR) £15.60
Carrier-imposed surcharge (YR) £9.80
Aug 13, 2019, 1:58 pm
#5
Join Date: May 2010
Location: Oxon, UK
Programs: Mucci des canapes, Skywards Gold, BAEC Gold, IC Plat Amb, Accor Gold
Posts: 1,948
Government, authority and airport chargesPer adultPsc (Domestic Head Tax) - AustraliaGBP 4.90Psc (Domestic Head Tax) - AustraliaGBP 10.60Baggage Screening Tax (Safety & Security Charge) - AustraliaGBP 3.10Total government, authority and airport charges*> More information
GBP 18.60British Airways fees and surchargesPer adultDistribution & Development LevyGBP 9.50
Well according to my e-ticket receipt above it is clearly indicated that this is a BA charge and nothing to do with Qantas.
For reference last year a J class Avios redemption between Hobart and Melbourne (Costing 3 times as many Avios) cost just £18.80 per head in taxes and charges (I no longer have the e-ticket receipt for the full brakdown), this time the redemption total cost was £28.10 per head for a shorter trip in Y rather than J.
It is difficult to believe this is not another quietly introduced miscellaneous charge to bolster BAs profit margins. Certainly no explanation can easily be found on BA.com for exactly what a districbution and development levy is.
GBP 18.60British Airways fees and surchargesPer adultDistribution & Development LevyGBP 9.50
Well according to my e-ticket receipt above it is clearly indicated that this is a BA charge and nothing to do with Qantas.
For reference last year a J class Avios redemption between Hobart and Melbourne (Costing 3 times as many Avios) cost just £18.80 per head in taxes and charges (I no longer have the e-ticket receipt for the full brakdown), this time the redemption total cost was £28.10 per head for a shorter trip in Y rather than J.
It is difficult to believe this is not another quietly introduced miscellaneous charge to bolster BAs profit margins. Certainly no explanation can easily be found on BA.com for exactly what a districbution and development levy is.
Aug 13, 2019, 2:06 pm
#6
Ambassador, British Airways; FlyerTalk Posting Legend
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Government, authority and airport chargesPer adultPsc (Domestic Head Tax) - AustraliaGBP 4.90Psc (Domestic Head Tax) - AustraliaGBP 10.60Baggage Screening Tax (Safety & Security Charge) - AustraliaGBP 3.10Total government, authority and airport charges*> More information
GBP 18.60British Airways fees and surchargesPer adultDistribution & Development LevyGBP 9.50
Well according to my e-ticket receipt above it is clearly indicated that this is a BA charge and nothing to do with Qantas.
For reference last year a J class Avios redemption between Hobart and Melbourne (Costing 3 times as many Avios) cost just £18.80 per head in taxes and charges (I no longer have the e-ticket receipt for the full brakdown), this time the redemption total cost was £28.10 per head for a shorter trip in Y rather than J.
It is difficult to believe this is not another quietly introduced miscellaneous charge to bolster BAs profit margins. Certainly no explanation can easily be found on BA.com for exactly what a districbution and development levy is.
GBP 18.60British Airways fees and surchargesPer adultDistribution & Development LevyGBP 9.50
Well according to my e-ticket receipt above it is clearly indicated that this is a BA charge and nothing to do with Qantas.
For reference last year a J class Avios redemption between Hobart and Melbourne (Costing 3 times as many Avios) cost just £18.80 per head in taxes and charges (I no longer have the e-ticket receipt for the full brakdown), this time the redemption total cost was £28.10 per head for a shorter trip in Y rather than J.
It is difficult to believe this is not another quietly introduced miscellaneous charge to bolster BAs profit margins. Certainly no explanation can easily be found on BA.com for exactly what a districbution and development levy is.
Your booking:
Psc (Domestic Head Tax) - AustraliaGBP 4.90
Psc (Domestic Head Tax) - AustraliaGBP 10.60
Baggage Screening Tax (Safety & Security Charge) - Australia GBP 3.10
Distribution & Development Levy GBP 9.50
----------------------------------------
Total TFC - £28.10
Psc (Domestic Head Tax) - AustraliaGBP 4.90
Psc (Domestic Head Tax) - AustraliaGBP 10.60
Baggage Screening Tax (Safety & Security Charge) - Australia GBP 3.10
Distribution & Development Levy GBP 9.50
----------------------------------------
Total TFC - £28.10
QF revenue booking:
Australia Goods And Services Tax GST (UO) £15.60
Australia Safety And Security Charge Departure (WG) £3.10
Australia Passenger Service Charge Domestic Arrival (QR) £15.60
Carrier-imposed surcharge (YR) £9.80
----------------------------------------
Total TFC - £28.50 (not including the GST which I assume isn't relevant for a reward booking)
Australia Goods And Services Tax GST (UO) £15.60
Australia Safety And Security Charge Departure (WG) £3.10
Australia Passenger Service Charge Domestic Arrival (QR) £15.60
Carrier-imposed surcharge (YR) £9.80
----------------------------------------
Total TFC - £28.50 (not including the GST which I assume isn't relevant for a reward booking)
Aug 13, 2019, 2:56 pm
#7
Join Date: May 2010
Location: Oxon, UK
Programs: Mucci des canapes, Skywards Gold, BAEC Gold, IC Plat Amb, Accor Gold
Posts: 1,948
I'm not certain it is clear. When I look at booking a one way Brisbane to Hamilton Island flight in economy for the date of my travel on the QF website I see a base fare and the following additions:
GST: Au$13.64
Passenger Service Charge (Dom) Au$8.79
Passenger Service Charge (Dom) Au$19.00
Safety and Security Charge Au$5,53
Excluding GST this comes to Au$ 33.32
This is approximately £18.80 which leaves the extra £9.30 imposed by BA for exactly the same flight unexplained to me.
I'm not sure where your quote in UK currency came from but the taxes and charges are clearly more expensive than that I'm seeing from the QF website.
GST: Au$13.64
Passenger Service Charge (Dom) Au$8.79
Passenger Service Charge (Dom) Au$19.00
Safety and Security Charge Au$5,53
Excluding GST this comes to Au$ 33.32
This is approximately £18.80 which leaves the extra £9.30 imposed by BA for exactly the same flight unexplained to me.
I'm not sure where your quote in UK currency came from but the taxes and charges are clearly more expensive than that I'm seeing from the QF website.
Aug 13, 2019, 3:21 pm
#8
Ambassador, British Airways; FlyerTalk Posting Legend
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I'm not certain it is clear. When I look at booking a one way Brisbane to Hamilton Island flight in economy for the date of my travel on the QF website I see a base fare and the following additions:
GST: Au$13.64
Passenger Service Charge (Dom) Au$8.79
Passenger Service Charge (Dom) Au$19.00
Safety and Security Charge Au$5,53
Excluding GST this comes to Au$ 33.32
This is approximately £18.80 which leaves the extra £9.30 imposed by BA for exactly the same flight unexplained to me.
I'm not sure where your quote in UK currency came from but the taxes and charges are clearly more expensive than that I'm seeing from the QF website.
GST: Au$13.64
Passenger Service Charge (Dom) Au$8.79
Passenger Service Charge (Dom) Au$19.00
Safety and Security Charge Au$5,53
Excluding GST this comes to Au$ 33.32
This is approximately £18.80 which leaves the extra £9.30 imposed by BA for exactly the same flight unexplained to me.
I'm not sure where your quote in UK currency came from but the taxes and charges are clearly more expensive than that I'm seeing from the QF website.
It may be worth you reading this https://www.australianfrequentflyer....-charges-list/
If I quote for a reward on the QF site for BNE-HTI I get:
8,000 points and $53 ($14*+$39†)
*Carrier charges payable to Qantas
†Taxes and third party fees (excludes any taxes or fees that may be payable at the airport)
*Carrier charges payable to Qantas
†Taxes and third party fees (excludes any taxes or fees that may be payable at the airport)
Air transportation charges
Other Carrier Charges $14.00
Taxes, fees and charges
Goods and Services Tax (GST) $4.73
Passenger Service Charge - Dom $8.79
Passenger Service Charge - Dom $19.00
Safety and Security Charge $5.53
Other Carrier Charges $14.00
Taxes, fees and charges
Goods and Services Tax (GST) $4.73
Passenger Service Charge - Dom $8.79
Passenger Service Charge - Dom $19.00
Safety and Security Charge $5.53
Aug 13, 2019, 3:36 pm
#9
Join Date: May 2010
Location: Oxon, UK
Programs: Mucci des canapes, Skywards Gold, BAEC Gold, IC Plat Amb, Accor Gold
Posts: 1,948
Thanks Karfa. I had just finished reading the AFF link and agree this does appear to be a QF charge. Odd that BA identify it as a BA charge however (and still no idea what a development and distribution charge may be).
The world of carrier imposed surcharges is not very clear and this does appear to be a new charge for BA Avios redemptions on QF compared with last year.
The world of carrier imposed surcharges is not very clear and this does appear to be a new charge for BA Avios redemptions on QF compared with last year.
Aug 13, 2019, 3:40 pm
#10
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Thanks Karfa. I had just finished reading the AFF link and agree this does appear to be a QF charge. Odd that BA identify it as a BA charge however (and still no idea what a development and distribution charge may be).
The world of carrier imposed surcharges is not very clear and this does appear to be a new charge for BA Avios redemptions on QF compared with last year.
The world of carrier imposed surcharges is not very clear and this does appear to be a new charge for BA Avios redemptions on QF compared with last year.
Aug 13, 2019, 7:51 pm
#11
Original Poster
Join Date: Mar 2012
Location: SYD
Programs: QF Plat, BA GGL, VA Silver, SQ Gold, IHG Gold, HH Diamond, Accor Plat, Hertz Pres Circle
Posts: 406
Any QF route, international or domestic.
GST is not charged when AU domestics are ticketed outside of Australia. As BA don't ever ticket an avios redemption inside Australia, no GST ever applies on an avios redemption.
BA don't charge fuel surcharges for QF redemptions and that continues to be the case. This is a new distribution levy and I suspect it's got something to do with QF's new Qantas Channel for agencies.
I checked on AA and AA aren't charging this distribution levy.
QF do charge carrier surcharges but not when ticketed by AA or BA.
For a revenue ticket in Y on QF non-stop BNE to HTI the taxes/fees/charges are:
In J the GST is higher of course but everything else is the same. There isn't any BA carrier surcharge added to a QF operated flight booked with avios. Have you got the TFC breakdown from your booking?
In J the GST is higher of course but everything else is the same. There isn't any BA carrier surcharge added to a QF operated flight booked with avios. Have you got the TFC breakdown from your booking?
I agree it is badly described. However it is clearly the QF carrier surcharge as it matches up with the example I took for a revenue ticket.
The total carrier surcharge figure levied is QF's on your reward. BA does not add any carrier surcharge or anything else on top. It is clear the Distribution & Development Levy is actually QF's carrier surcharge in this case.
The total carrier surcharge figure levied is QF's on your reward. BA does not add any carrier surcharge or anything else on top. It is clear the Distribution & Development Levy is actually QF's carrier surcharge in this case.
I checked on AA and AA aren't charging this distribution levy.
My quote came from itamatirx.
It may be worth you reading this https://www.australianfrequentflyer....-charges-list/
If I quote for a reward on the QF site for BNE-HTI I get:
A$53 is about £29, and the A$14 figure for carrier surcharge is about £7.80. The full breakdown is:
QF do levy carrier surchage on their rewards. BA are not adding anything on.
It may be worth you reading this https://www.australianfrequentflyer....-charges-list/
If I quote for a reward on the QF site for BNE-HTI I get:
A$53 is about £29, and the A$14 figure for carrier surcharge is about £7.80. The full breakdown is:
QF do levy carrier surchage on their rewards. BA are not adding anything on.
Aug 14, 2019, 12:37 am
#12
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This is an example for one way SYD-PER in Y booked with avios on ba,com and I don't see it? This is the full breakdown of TFC
If I price the same flight on the QF site using their rewards scheme this is the TFC;
I had a look at AA and the TFC is:
Psc (Domestic Head Tax) - Australia GBP 5.10
Baggage Screening Tax (Safety & Security Charge) - Australia GBP 3.10
Psc (Domestic Head Tax) - Australia GBP 5.20
Carrier imposed charge GBP 9.50
-----------------------------------------------------
Total GBP 22.90
Baggage Screening Tax (Safety & Security Charge) - Australia GBP 3.10
Psc (Domestic Head Tax) - Australia GBP 5.20
Carrier imposed charge GBP 9.50
-----------------------------------------------------
Total GBP 22.90
Other Carrier Charges $14.00 (~£7.89)
Goods and Services Tax (GST) $3.79 (~£2.13)
Passenger Service Charge - Dom $9.14 (~£5.15)
Passenger Service Charge - Dom $9.26 (~£5.21)
Safety and Security Charge $5.53 (~£3.11)
-------------------------------------------------
Total $41.72 AUD (~£23.49)
Goods and Services Tax (GST) $3.79 (~£2.13)
Passenger Service Charge - Dom $9.14 (~£5.15)
Passenger Service Charge - Dom $9.26 (~£5.21)
Safety and Security Charge $5.53 (~£3.11)
-------------------------------------------------
Total $41.72 AUD (~£23.49)
BA don't charge fuel surcharges for QF redemptions and that continues to be the case. This is a new distribution levy and I suspect it's got something to do with QF's new Qantas Channel for agencies.
I checked on AA and AA aren't charging this distribution levy. QF do charge carrier surcharges but not when ticketed by AA or BA.
I checked on AA and AA aren't charging this distribution levy. QF do charge carrier surcharges but not when ticketed by AA or BA.
INTERNATIONAL SAFETY AND SECURITY CHARGE (AUSTRALIA) £3.10 GBP
PASSENGER SERVICE CHARGE (AUSTRALIA) £10.30 GB
-------------------------------------------------------
Total £13.40
PASSENGER SERVICE CHARGE (AUSTRALIA) £10.30 GB
-------------------------------------------------------
Total £13.40
Aug 14, 2019, 2:40 pm
#13
Original Poster
Join Date: Mar 2012
Location: SYD
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Posts: 406
I think it depends on which site/engine you price it on, but in your breakdown it is called "Carrier imposed charge GBP 9.50". This is NOT the 14 AUD carrier surcharge priced on the QFF award booking engine - that's an actual fuel surcharge. The 9.50 GBP/12.50 USD is not - it is some distribution/channel surcharge, similar to what BA/IB/LH/others charge travel agents booking via the GDS.
