SinoBritAsia

No, in fact ajelonard: what the Hong Kong's aviation regulator has done is pass on the power to add/remove fuel surcharges over to the airlines. It is now up to the airlines to collect/add/remove fuel surcharges - and no longer in the government's hands.

Therefore, with current oil prices where they are, it is actually inevitable airfares will go up on cash bookings AND redemptions.

On the final price: that is a separate rule ordered by CAD to ensure pricing is transparent and that passengers know the full price at the first time of asking - not just the cost of the airfare

NoviceFT

If you price out from any airports in India to HKG vs from HKG to any airports in India, you will notice the difference.

marcolau317

Just ran ITA matrix, I saw the difference is the CX YQ fee for return, exactly as the one published.
Unless you are talking premium cabins, seems that additional India GST is charged

:D!

There has never been anything stopping paid airfares rising in response to increasing fuel costs. Regardless of whether a portion of the airfare is labelled as "fuel surcharge". Because it was only ever about labelling.

Before 2014(?):
Fare of $5000 can have a fuel surcharge of $500 added, but airlines can advertise their fare as $5000 and initial search results will show that amount.

2014-2015:
Fuel surcharges were capped at lower amounts. Nothing stopped the airline from changing the total price to $5400 fare + $100 fuel surcharge. However, the advertised price and initial search results would now have to show $5400.

2016-2018:
Airlines cannot label any part of their fare as fuel surcharge, but nothing stopped them from charging a fare of $5500 or raising it to $6000.

Fuel surcharge permitted:
Airlines can now relabel the $5500 fare as $3000 fare and $2500 fuel surcharge or $1 fare and $5499 fuel surcharge if they like. They can still raise the fare + surcharge to $7000 if they want to. But now they need to advertise the total price, including the $300 departure tax+airport construction fee + overseas taxes and fees.


The only thing that can change is redemptions, since the amount of fare covered by miles can now be reduced.

The total price for paid airfares remains subject to market forces. If an airline raises the price of a ticket from $5000 to $5500, then there will be a drop in demand whether they label it as $5500 fare or $5000 fare + $500 fuel surcharge. Unless you think HK consumers are so stupid that they will pay $500 more for the same thing just because it is called a fuel surcharge but they won't pay it if it is called the fare?? It's not like airlines were collecting fuel surcharges at check-in based on the current price of oil - it was always fixed at the time of booking.

If there is no drop in demand, then the airlines were stupid and should have raised fares earlier.


The SCMP article wasn't talking about award flights.

percysmith

Although the crowd here are both revenue and redemption passengers, you correctly pointed out there is negligble effect on the former, so the effect is on the latter.

Supposedly in the post-22/6 world CX is getting a lot more aggressive releasing redemption seats and being far more price discriminatory by more aggressive use of Choice/Tailored (cut the fiction Choice is available, it's usually just Tailored).

This rule change means we based in HK are going to pay more for redemptions. But will we get more seats for the higher prices we will be paying? I am doubful although I am reluctant to take bets on this here (cos in an online forum I have no idea how to collect on winnings).

If the "global trend of liberalisation of fuel surcharges to enhance competition" is true, competition will result in no additional profit to airlines from the change in rule; however with our slot-restricted airport, I do not have confidence there will be no adverse change to passengers.

NoviceFT

My bad...up thread there was a mention of CX redemption using BA Avios, I was under the assumption that you were saying about the same. I must have been specific.

percysmith

https://www.cathaypacific.com/cx/en_...e-updates.html
Previous table: https://www.cathaypacific.com/cx/en_...-November.html

"No fuel surcharges apply for travel itineraries originating in Hong Kong SAR." wording has been removed
So $652 for long haul (x2), $210 for Japan (x2), $146 for other short haul (x2)

percysmith

feh

https://www.scmp.com/news/hong-kong/...set-cost-hk652

If this article is on the money, then CX seems to be re-introducing these surcharges first.

fishball

percysmith

Virgin? Indirect ME3?

kaka

percysmith

MNL r/t cost > $652x2?

coffee21

I was going to redeem a ticket in November yvr-hkg-bkk for travel next year. Can I issue the ticket now and pay the $25usd per sector for a date change to avoid the new surcharge?

kaka