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#756419 by David
02 Oct 2010, 08:27
Just having a look for some flights for next year - wow, another price rise.

In the last 2 years, Z fares have increased from £1500 to £1600 to £1800 and now to £2000 and what have we gained for the 33% price rise ......

?|

Maybe its to pay for the new TV ad v(

Paying for all our flights, guess who wil be dropping to AG next year. :(!

David
#756420 by Darren Wheeler
02 Oct 2010, 08:32
I think it's a simple case of Supply and Demand. With only 14 seats that VS know they can pretty much fill for each flight, the price will increase until they cannot be filled.
#756421 by Penny_L
02 Oct 2010, 08:41
also the next APD increase kicks in on Nov 1st so that will account for some of the rise
#756423 by Bill S
02 Oct 2010, 09:01
APD and Sterling drop account for almost all.
Most airline costs are in dollars - in 2008 it was $2=£1
$2 now costs you £1.27 so 27% of that Z rise is accounted for there.
Add in the APD and you see why VS are cutting costs ;)
#756439 by tontybear
02 Oct 2010, 11:20
APD from UK to USA has been the following rates for premium cabins has been taken from the wiki page

Pre Feb 2007 £ 40.00
Feb 2007 - Oct 2009 £ 80.00
Nov 2009 - Oct 2010 £ 90.00 (start of new zonal system *)
Nov 2010 - £ 120

So although there has been a large % increase, in cash terms the increase is not that much in comparison to the general price increases.

Need to factor in oil prices too and the exchange rate. Even a cut in the oil price can turn out to be an increase if the $-£ rate moves the wrong way.

Taking David'd increase in the fare price in the last two years from £1.5k to £ 2 k only £ 40 is due to APD increase (taking the Oct 2009 rate up to the Nov 2010 rate).


(*based on distance from London the the national Capital of the country of destination so USA is in B Zone)
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