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#813843 by LovingGold
15 Jun 2012, 08:23
Looking for a bit of knowledge from the coup here......

If you look at a fare breakdown on the VS site you see all of the normal taxes (dependent on where you fly into) but we still see the dreaded line

Operating Airline Fuel & Insurance Surcharge £xxx.xx

Now my question is why is this still in use? Bulk cost of fuel has declined since this was introduced and we now have direct Sep 11th Fees that cover certain security increases. Also does this go straight to the airline, making them almost double the income on some flights and why do they not just increase the ticket cost directly???

Not a moan, well it is a bit :o), really more interested in it's real meaning and it's relevance now.
#813844 by preiffer
15 Jun 2012, 08:33
Where have you been for the past xxxx years, LovingGold?!?!

This has been an annoyance to almost every passenger for as long as I can remember. Your points and assertions are correct, but so many airlines are doing this (and have been for so long) that change seems unlikely. :(
#813845 by preiffer
15 Jun 2012, 08:41
PS - just one thing...

LovingGold wrote:...Bulk cost of fuel has declined since this was introduced...


Err....

http://www.nyse.tv/crude-oil-price-history.htm

http://inflationdata.com/inflation/infl ... _table.asp

and

http://www.wtrg.com/oil_graphs/oilprice1947.gif

While crude oil has come down since other peaks (March this year, March 2011, July 2008, etc) - overall, I fear the crude oil prices are still way above what they were when the fuel surcharges were first introduced...
#813847 by LovingGold
15 Jun 2012, 09:02
preiffer wrote:Where have you been for the past xxxx years, LovingGold?!?!


Biting my tongue!!! LOL

Your links do show interesting reading. My point was more look at the cost this month $84.10.
Now in April 2012 - $103.31
Feb 2012 - $ 98.67
Now in April 2011 - $107.94

Pretty sure they must purchase their fuel every 3 months or so (90 day billing etc). Why is the cost not flexible on the fuel cost?? Also these costs you show are per barrel I believe. Not sure how many barrels it takes to fly me across the pond but it is really 4 or so barrels?
#813850 by jodash
15 Jun 2012, 09:47
LovingGold wrote:
preiffer wrote:Where have you been for the past xxxx years, LovingGold?!?!


Biting my tongue!!! LOL

Your links do show interesting reading. My point was more look at the cost this month $84.10.
Now in April 2012 - $103.31
Feb 2012 - $ 98.67
Now in April 2011 - $107.94

Pretty sure they must purchase their fuel every 3 months or so (90 day billing etc). Why is the cost not flexible on the fuel cost?? Also these costs you show are per barrel I believe. Not sure how many barrels it takes to fly me across the pond but it is really 4 or so barrels?



I would also assume that they hedge the cost of the fuel on the futures markets
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