LH increases[/reduces] fuel surcharge

Old Oct 15, 08, 9:38 am
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LH to lower fuel surcharge

15.10.2008
As crude oil and kerosene prices have decreased, Lufthansa will reduce its fuel surcharge on its flights. The fuel surcharge on domestic German and intra-European routes will lower by 3 euros to 24 euros per flight segment. On long-haul routes the corresponding fuel surcharge will be decreased by 5 euros to 92 euros per flight segment.

The reduction will apply to all Lufthansa tickets issued on or after 20 October 2008. Lufthansa continually monitors oil prices and will make any future adjustments to the fuel surcharge dependent on further trends in the price of jet fuel.
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Old Oct 15, 08, 9:58 am
  #107  
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...still at a ridiculously high level ...
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Old Oct 15, 08, 12:54 pm
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A reduction of 5 euros? Hardly worth the bother of actually releasing a press release... I got all excited wondering whether it would be a comparable reduction to OZ (almost 40% decrease on longhaul flights)
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Old Oct 15, 08, 1:41 pm
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Originally Posted by Triple3 View Post
So, if you call this "perfectly correlated"...
Re: the topic discussed, I strongly suggest the following course of action:

1. Go find your econprof or statprof from back in school/university years.

2. Make an early morning appointment.

3. Profusely apologize for bamboozling him into convincing him that you deserved a passing grade in his 101 class.

4. Kindly ask for permission to take both his class and exam again!

5. You're good to go and post here again!

I mean, if by defying basic logic/intuition you do need a calculator/numbers/whatever to argue against the blatant correlation between the IATA-site series posted by SmilingBoy, something must have gone dead wrong in that darn class!
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Old Oct 16, 08, 1:03 am
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Originally Posted by andre1970 View Post
I mean, if by defying basic logic/intuition you do need a calculator/numbers/whatever to argue against the blatant correlation between the IATA-site series posted by SmilingBoy, something must have gone dead wrong in that darn class!
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Old Oct 16, 08, 1:43 am
  #111  
 
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This might be interesting to understand how LH works, though to be honest, it has actually confused me even more:

"We review the average Kerosine Rotterdam price of the nearest three months in May, August, October and January, and if the average price falls below the standard price mentioned below, we will revise the surcharge on June 1, September 1, November 1 or February 1 respectively as follows:

* below 120 USD per barrel - 190USD
* below 110 but above 100 USD per barrel - 170USD
* below 100 but above 90 USD per barrel - 140USD
* below 90 but above 80 USD per barrel - 110USD
* below 80 but above 70 USD per barrel - 80USD
* below 70 but above 60 USD per barrel - 45USD
* below 60 but above 50 USD per barrel - 15USD
* below 50 USD per barrel - will be abolished

Please note that there will be an additional security charge of 8 USD."

Found at: http://www.lufthansa.com/online/port...18&cid=1000276
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Old Oct 16, 08, 8:40 am
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Originally Posted by jkoul View Post
This might be interesting to understand how LH works, though to be honest, it has actually confused me even more:

"We review the average Kerosine Rotterdam price of the nearest three months in May, August, October and January, and if the average price falls below the standard price mentioned below, we will revise the surcharge on June 1, September 1, November 1 or February 1 respectively as follows:

* below 120 USD per barrel - 190USD
* below 110 but above 100 USD per barrel - 170USD
* below 100 but above 90 USD per barrel - 140USD
* below 90 but above 80 USD per barrel - 110USD
* below 80 but above 70 USD per barrel - 80USD
* below 70 but above 60 USD per barrel - 45USD
* below 60 but above 50 USD per barrel - 15USD
* below 50 USD per barrel - will be abolished

Please note that there will be an additional security charge of 8 USD."

Found at: http://www.lufthansa.com/online/port...18&cid=1000276
Yep. Arbitrary nonsense.

Well, of course Triple3 is always welcome to pitch in and try to rationalize the above schedule under the light of his exotic econom(etr)ic alchemy
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Old Oct 16, 08, 2:56 pm
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Originally Posted by andre1970 View Post
Re: the topic discussed, I strongly suggest the following course of action..
So here you hide! While I was busy clubbing evil women with coughing children you were wrestling with 333!

I quite like the sophisticated discussion .. I just cannot follow it with the accuracy the posters exhibit here.

What I do not quite understand though - and please correct me if I am wrong 333 - I always learned that the production ratios of the gasolines, diesels & bunkers, bitumen is pretty much given by the crude and that the actual synthesis of longer molecules is costly and hence avoided if possible in favour of pure distillates. This is why some heavy machinery runs on suboptimal fuel simply because it is available.

Now would that not imply that any fossil fuel - prior to some fancy additives - must follow crude prices unless there is a market oligopoly as exists for Australia? That is ignoring the changes in margins these refineries might have.
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Old Oct 16, 08, 5:21 pm
  #114  
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Originally Posted by stargold View Post
A reduction of 5 euros? Hardly worth the bother of actually releasing a press release... I got all excited wondering whether it would be a comparable reduction to OZ (almost 40% decrease on longhaul flights)
At least it is a decrease. NZ refuses to countenance the possibility, and QF has matched by excluding ex-NZ fuel surcharges from their recently announced decreases.
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Old Oct 16, 08, 7:23 pm
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Originally Posted by stargold View Post
A reduction of 5 euros? Hardly worth the bother of actually releasing a press release... I got all excited wondering whether it would be a comparable reduction to OZ (almost 40% decrease on longhaul flights)
Indeed. That brings my MR on OZ down to 823$ for LAX-ICN-HKG
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Old Oct 17, 08, 12:46 am
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Originally Posted by andre1970 View Post
Yep. Arbitrary nonsense.
I agree - still see no difference ex-India...

Last edited by SuperFlyBoy; Oct 17, 08 at 12:53 am
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Old Oct 17, 08, 5:32 am
  #117  
 
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Originally Posted by weero View Post
Now would that not imply that any fossil fuel - prior to some fancy additives - must follow crude prices unless there is a market oligopoly as exists for Australia?
a) Define "follow". We've been talking abt. correls... and an 0.8 corr can also be termed as "to follow"...

b) Not necessarily - which gets clearest when you think of CO2 prices. If those are high enough powerplant operators might shift away from coal and switch to gas. This might lead to dropping coal prices whilst gas or oil might be rising. But given current commodity volas it's quite difficult to "define" which fuel follows which one.

Of course, andre1970 will see this different given his ingenious economic insights.
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Old Oct 17, 08, 6:00 am
  #118  
 
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Originally Posted by weero View Post
So here you hide! While I was busy clubbing evil women with coughing children you were wrestling with 333!
C'mon mate, that other thread is already saturated by my "contributions"
Originally Posted by Triple3 View Post
Of course, andre1970 will see this different given his ingenious economic insights.
Actually, I have no clue . Econ is too complex for me . So it is for you The difference is that you don't want to admit it...

Last edited by andre1970; Oct 17, 08 at 6:12 am
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Old Oct 17, 08, 6:07 am
  #119  
 
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Originally Posted by Triple3 View Post
a)..b)..
Yes but that's economics & politics .. not tightly linked to reality. What I meant was that they output ratios cannot be trivially modified. if you refine crude, you will get a certain mount of kerosene which - should you choose to convert it - will cost you a lot to transmogrify.

And this is what I meant with 'follow' - as the processes induce each other, a lot of effort would be required to break the cycle.
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Old Oct 17, 08, 6:51 am
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Originally Posted by weero View Post
Yes but that's economics & politics .. not tightly linked to reality. What I meant was that they output ratios cannot be trivially modified. if you refine crude, you will get a certain mount of kerosene which - should you choose to convert it - will cost you a lot to transmogrify.
That's what I said earlier (re: combined production). Btw: You can modify output ratios slightly w/o changing the type of crude used.
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