V-Flyer

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

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.

also the next APD increase kicks in on Nov 1st so that will account for some of the rise

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

There aren't any promotions on this flight at the moment either, I guess we are In a high fare time to make the sale seem like a saving ...

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)