BA & VS in the firing line over fuel surcharges

[preiffer]

Not sure if anyone's seen this already:

Article from the telegraph

The travel industry has accused British Airways and Virgin Atlantic of "misleading" passengers by adding extra fuel charges to air fares in the wake of Hurricane Katrina.

According to the International Air Transport Association (IATA), the airline industry is expected to lose $7.4 billion (£4.1billion) this year due to heavier fuel bills. Delta and Northwest Airlines this week filed for bankruptcy, citing rising costs and competition from budget carriers.

Are we being taken for a ride? If fuel costs rose by 6% after Katrina, they also came down by the same, so why does the fuel surchage remain 20% higher? I predict this is going to be continuing cause of concern and trouble for airlines unless there is some greater transparency around the additional costs. Be interesting to see what effect this has on profits of VS and BA at the end of the year, I won't be surprised to see both have risen ...

And I'd actually like to see a full breakdown of these charges. My proposed Premium Economy flight to Orlando in November has a huge £140.30 attached to it in taxes, security charges, fuel etc ...

Hopefully someone on here will be able to tell me but I thought that UK taxes were £10 - £20 pounds. If the USA is around the same, where's the rest going ?

Anyone who saw BBC 1's "Departure Lounge" recently will know that's it worth shopping around as these charges differ dramatically from airline to airline.

[preiffer]

Originally posted by andrew.m.wright
And I'd actually like to see a full breakdown of these charges. My proposed Premium Economy flight to Orlando in November has a huge £140.30 attached to it in taxes, security charges, fuel etc ...

Well, here's the VS breakdown for a trip to San Francisco in Economy:

Tax: US International Arrival Tax $14.10
Tax: United Kingdom Passenger Service Charge £11.90
Tax: United Kingdom Air Passengers Duty £20.00
Tax: US Customs Fee $5.00
Tax: US Immigration Fee $7.00
Tax: USDA APHIS Fee $4.95
Tax: US September 11th Security Fee $2.50
Tax: US Passenger Facility Charge $4.50
Tax: US International Departure Tax $14.10
Tax: Virgin Atlantic Airways YQ Surcharge £53.00

YQ is the fuel surcharge, set by the airlines. Your charges will be all of that, + £20 for a "non-economy class surcharge". Basically, the UK government charge all passengers that are not travelling in Y an extra £20 tax. Unfortunately, PE comes under that category... [V]

[Scrooge]

With airline's being unable to raise fares this is a quick and easy way to get more money.

Paul,

Thank you so much fore the breakdown - It's very interesting.

So yet another hidden tax for enjoying the pleasure of Premium Economy then with my hard earned money with has already been taxed !

Wonder if you might win a discrimination case on that one in court ?

Doubt it [:(]

[ChuckC]

Totally agree with Andrew and Dave. Hate to say this, but I think the fuel surcharges are here to stay: the public is grudgingly willing to allow "fuel surcharge" increases to ticket prices while roundly rejecting "fare" increases.

I'm not saying that Katrina didn't affect the supply pipeline; but, the real source of the price increases (other than the public's over-reliance on oil as an energy source, that is) is the cartel that controls most of the world's oil supply; it has been lowering output for some time, which has resulted in the slowly and surely higher prices at the petrol pump.

We need renewable energy sources.

Chuck-

I think they are blaming this surcharge on Katrina as the general public will focus on that and 'accept' or 'understand' it. In reality I am sure it is a catch up charge as the rise in Platts (Jet A1 barge price) has leapt in recent times. I have a hard job keeping up with the rates and find the rise in prices incredible, not even sure that hedging is the answer either.

Graham

In effect we are all businesses - Money comes in (salary), money goes out (Mortgage, rates, food etc).

Imagine what my employer would say if I decided to add a 12% fuel surcharge to my monthly invoice ! [8D]

Eventually in my case outgoings will have to be trimmed back, which means the reduction in holidays.

I'm probably not alone in this - Passengers may well decide to vote with their feet, and stay in the UK [:(]

[Decker]

Andrew - invoicing your employer eh? Some interesting IR35 implications there I'll bet [:o)]

Just throwing into the mix Decker ! Debate is always good

I wouldn't even mind paying £53 depart/return to the UK if the money was being used to good effect - Except the last 2 times I've got soaking wet walking from remote stands to over crowded buses, followed by a bendy bus ride, and then waiting hours for passport, and cases !

Wait a moment we've alreday done that one recently

I demand a refund

Ah well, we'd always forgive when everything is perfect ...