V-Flyer

I've been looking at the tax/fee element of VS fares and have a few questions:

If I use miles for an outright UC reward (G) return LHR-SFO-LHR the tax/fee breakdown is £457.93. But if I were to use money for the fare (Z) the tax/fee element is £480.73. The difference of £22.80 is attributable to USA Transportation Tax (£20) and USA Passenger facility charge (£2.80) not being levied on the miles sourced ticket. Why is this? Incidentally the exact same £22.80 difference is identical when making the same comparison for PE or EC tickets.

I can't get my head round VS's 'Operating Airline Fuel & Insurance Surcharge'. Now, as I understand it: The UK Air Passenger Duty makes Business Class Passengers pay more APD than Economy class. That is why APD is £60 for Economy and £120 for UC (this is still using the LHR-SFO-LHR example). So, if the 'pay extra for UC' is taken care of in the APD why do VS levy £295 against 'Operating Airline Fuel & Insurance Surcharge' if UC compared to £201 if Economy? Surely the fuel/insurance charges should be the same?

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No idea why the USA Transportation Tax / Facility Fee is not charged on a reward. My guess would be that the US regulations exclude it from being charged on upgrades for some reason.

Yes APD is £ 60 for Y and £ 120 for PE and UC. But that is just a tax element imposed on VS and they have to hand it over to HMG. It is not the VS 'pay extra for UC' fee

I guess the bulk of the 'Operating Airline fuel & surcharge ...' is actually the fuel surcharge and the insurance part is a very small element of it.

I assume that VS charge more for UC than PE/Y because they can ! or that UC have more bags and more space = more fuel needed hence the larger surcharge.

You know my view that the fuel surcharge should be part of the base fare anyway as it is a basic cost of flying.

I've just learnt from experience that the 2% discount cashback only works on the base fare not the surcharges and taxes. Can understand the taxes bit I suppose, but this another reason for VS to keep the surcharge separate.

stevebrass wrote:I've just learnt from experience that the 2% discount cashback only works on the base fare not the surcharges and taxes. Can understand the taxes bit I suppose, but this another reason for VS to keep the surcharge separate.

Depends which site you use. I use quidco and get 1% via expedia on the entire cost of the fare and not just the base. Happened for a number of fligths I have taken - BA, Swiss and VS too!

I can understand a retailer not offering cash back on the charges imposed on it (APD, airport fees) that it can't do anything about but the fuel surcharge is 100% within its control.

The issue is why don't they include it in the base fare - that is the slightly dishonest thing.

tontybear wrote:I assume that VS charge more for UC than PE/Y because they can ! or that UC have more bags and more space = more fuel needed hence the larger surcharge.

I still can't get my head round why VS charge nearly 50% more 'Fuel & Insurance Surcharge' to an UC passenger versus EC or PE. Surely to goodness UC pax don't use 50% more fuel, and as for insurance is there really a difference between insuring UC folk versus EC or PE? Just seems plain weird all this, unless of course this charge is not really anything to do with 'Fuel & Insurance' and, as many say, just VS imposing an additional, somewhat random, charge just because you're in UC!

Thanks
James

A suite weighs a LOT more than a Y seat and weight costs fuel money.

Decker wrote:A suite weighs a LOT more than a Y seat and weight costs fuel money.

plus the increased allowance for checked bags which Mrs HH insists "we" use to capacity ! so together with the weight of the suite it is a fare charge I think

VS could argue that J passengers should be surcharged more than 3 times as much as Y passengers on the basis that approx 3 economy seats each with fare paying passengers could be put in the same space. So I really think it is comes down to them charging what they think they can get away with: Whilst revenue fares are essentially controlled by economics and market forces, the surcharge, in my opinion, merely functions as a means of charging for so-called free reward flights without falling foul of the ASA.

As the others have alluded to, Fuel Surcharge (YQ) varies per sector dependant on which cabin you fly in.

APD varies dependant on if you are flying in the lowest class of travel, or a higher class - If you start your flight outside of the UK and merely connect in the UK (departing less than 24 hours after arrival) then APD is not applicable. So you may benefit from booking outside the UK, and getting an Ex-AMS or ex-CPH fare.