Qantas ups fuel surcharge again
#1
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Qantas ups fuel surcharge again
QANTAS Airways today increased its fuel surcharge for the second time in three months, saying it needed the extra money to help counter the rising price of oil.
Domestic travellers will now be charged an extra $2 a ticket to $12 while the charge will go up by $7 for international travellers to $29.
Domestic travellers will now be charged an extra $2 a ticket to $12 while the charge will go up by $7 for international travellers to $29.
#3
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And in other breaking news, taxis have added a $2 per hire fuel levy to cover increased petrol costs, Countrylink & Vline diesel passenger services will be adding $5 to each journey, and Australia Post will be putting a temporary 2c levy on each postage stamp to cover the additional costs imposed on their business by rising fuel prices.
#5
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And for all the fuss, oil is still a hell of a lot cheaper now than it has been in the past, when you adjust for inflation.
Petrol is still cheaper by the litre than coke or water. Go figure.
Petrol is still cheaper by the litre than coke or water. Go figure.
#6
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Originally Posted by shillard
And for all the fuss, oil is still a hell of a lot cheaper now than it has been in the past, when you adjust for inflation.
Petrol is still cheaper by the litre than coke or water. Go figure.
Petrol is still cheaper by the litre than coke or water. Go figure.
In any case, bulk mains water is severely underpriced - but that's another debate - and too close to work for a Friday evening.
#8
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Virgin Blue to review fares rather than impose further fuel surcharges
Can't find it online yet, but I am sure it will be soon.
Originally Posted by Virgin Blue Media Announcement
Virgin Blue today announced today that it is reviewing fares across its entire network, in light of continuing iol price rises, in an effort to avoid imposing further across-the-board surcharges.
Oil prices continue to climb to record high levels, with jet fuel now over US$60 per barrel, up from around US$33 per barrel 12 months ago. There has been a fundamental shift in global economic conditions affecting fuel and Virgin Blue believes the market will continue to see sustained high oil prices in the medium term.
In recent weeks, Virgin Blue has carefully considered all options, including the possibility of imposing a further fuel surcharge in line with other airlines around the world.
...
The fare review is currently underway and will continue over the next few weeks. It will take into account a variety of factors including customer price sensitivity, load factors and fuel consumption per route.
The existing fuel surcharge of $10 per sector for Virgin Blue flights and $20 per sector for Pacific Blue flights will continue to apply.
Oil prices continue to climb to record high levels, with jet fuel now over US$60 per barrel, up from around US$33 per barrel 12 months ago. There has been a fundamental shift in global economic conditions affecting fuel and Virgin Blue believes the market will continue to see sustained high oil prices in the medium term.
In recent weeks, Virgin Blue has carefully considered all options, including the possibility of imposing a further fuel surcharge in line with other airlines around the world.
...
The fare review is currently underway and will continue over the next few weeks. It will take into account a variety of factors including customer price sensitivity, load factors and fuel consumption per route.
The existing fuel surcharge of $10 per sector for Virgin Blue flights and $20 per sector for Pacific Blue flights will continue to apply.
#9
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No-frills airline Virgin Blue has decided against an across-the-board increase in its existing fuel surcharge, despite a further rise in global oil prices.
#10
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Originally Posted by ABC News online
The airline wants to avoid a possible fall in passenger demand.
Perhaps, on my sinister thought, it 'sounds' better in DJ's perspective (something like 'See, we are not uping the surcharge unlike QF...blah... blah' ) since hardly any 'guests' would notice their base fare has gone up.
Just my thoughts...
Last edited by RickyT; Oct 20, 2004 at 6:49 pm Reason: Minor editorial error
#11
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Originally Posted by RickyT
Just my thoughts...
Of course the other thing is that QF's fares all go up the same amount, irregardless of the distance, aircraft type or actual fuel costs/consumption - just differentiated by domestic or international. DJ is proposing to make the increases a little more reflective of actual costs, but we will need to wait and see if that is really done.
#12
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Originally Posted by NM
I agree. The end result is similar. But the marketing spin shows they are trying to be different and not just another "me too" airline. Good on them for presnting this "enhancement" in a different light.
Imagine if QF had raised its fares by x% across the board instead of upping the surcharge, but DJ had upped the surcharge instead:- "Qantas gouges passengers by hiking fares, Virgin Blue merely recovers extra costs". Etc. etc. 'Twas ever thus.
#13
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Originally Posted by Globaliser
Well the light is certainly different, but I'd bet my bottom dollar that the asymmetric media treatment would be the same whatever the two airlines had done.
Now, DJ on the other hand... They add a $2 per passenger sector to every booking, when you reach the last screen. THAT is misleading, and unconscionable conduct, in my book. They shouldn't claim you save $10 booking online, when you really only save $8.
Oh, were we talking about fuel surchages?
#14
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DJ with its simple fare structure can review its fares, and use this to absorb the fuel increase & attempt to win the PR war. QF probably has a whole suite of fares & interline agreements (esp with international sectors) so is probably easier to keep on increasing the fuel surcharge - not too mention a % of seats which are FF awards, which it can conveniently earn revenue on through the fuel surcharge.
#15
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Originally Posted by NM
Can't find it online yet, but I am sure it will be soon.
Virgin Blue has ruled out following Qantas's lead in introducing an additional fuel surcharge, opting instead to "review" the airfares across all of its routes in order to counter the recent increase in fuel prices...