View Full Version : Fuel Surcharge extra $152 one way!!!

22nd Aug 2005, 20:42
Ouch!!!! that's gonna hurt!

Air NZ Defends Fuel Surcharge
23/08/2005 08:11 AM

Air New Zealand says it has had no choice but to hike its fuel surcharge.

The rise will add $6.00 to a domestic flight, $10 to a trans-Tasman or Pacific flight and an extra $152 one way on long-haul flights to Europe. The increases apply to flights booked and paid for after September 1.

Air New Zealand says its jet fuel bill has risen 25 percent in the past three months and is now 42 percent higher than a year ago.

Chief Financial Officer Rob McDonald says the company cannot go on absorbing the cost, particularly as favourable hedging it had negotiated against fuel prices begins to roll off.

connection fee
26th Aug 2005, 10:06
"Air New Zealand says its jet fuel bill has risen 25 percent in the past three months and is now 42 percent higher than a year ago."

So has fuel price per gallon gone up 25% in the last 3 months and 42% per gallon over the last year OR is this marketing poetry saying that AirNZ total fuel bill has risen by this amount due to also increased flying time? :D

rescue 1
26th Aug 2005, 22:10
I am surprised that most consumer advocates are not onto this - taxis are not allowed to put on a fuel surcharge rather they raise the flagfall charge and include it in the "driveaway" price.

Airlines - well mostly, have a hedging policy to preserve prices, and yet their surcharges are based on the pump price.

If they were smart, they would role it into the ticket price, to help increase the yields when the oil (in its normal life cycle) returns to traditional rates.

The spin doctors would have an easier time defending ticket prices rather than defending surcharges.

Brian Abraham
28th Aug 2005, 01:54
Whats with all this fuel surcharge anyway? If the price of an imput into the cost of doing business (fuel in the tank) goes up you increase the price of the service. Is it just a marketing ploy (its not our fault we have to charge more). Next we will see,
Aircrew surcharge
Cabin staff surcharge
Landing fee surcharge
Insurance surcharge (liability)
Insurance surcharge (hull)
etc, etc, etc, etc
Where will it stop?


28th Aug 2005, 07:23
Make that and "Aircrew Discount" as the airlines pass on the paycuts imposed on crew to make up for the rising price of fuel............maybe not (they'll keep the discount).:yuk: :{

Only if we let them that is :} Resist Management BS unless they transparently cut their own remuneration & bonuses.

BTW the price of a barrell of oil in 1980 was US$90 in 2005 dollars and the world didn\'t come to an end.:ok:

28th Aug 2005, 07:39

I think most authorities go for $82US allowing for inflation.

Different scenario at that time, it was politically inspired sheenanigans that sent the price up.

This time it is demand exceeding supply, the price came down after the political Hoo Ha, but the demand is going to keep outstripping supply this time, the chance of the price dropping any significant amount is very remote.

It is over 35 years since the last significant discovery of a new oilfield. And there has been a lot of looking going on.