tobzalp
21st Aug 2006, 23:16
FLIGHT CENTRE MD CALLS FOR FUEL SURCHARGE ACTION
FLIGHT Centre Limited managing director Graham Turner today described airlines' fuel surcharge policies as outdated and inappropriate.
Mr Turner said rather than applying these additional surcharges, airlines should simply incorporate fuel expenses into upfront ticket prices, as was the case in every other business in the world.
"Historically, surcharges were introduced only as an initial cost recovery method after oil prices started to increase," he said.
"Then, when it was clear prices were not going to decrease significantly, they were to be incorporated into ticket prices. This made it less confusing and misleading for customers and showed clearly what the fares actually were.
"Already, airlines such as Emirates and Jetstar have done exactly this. Others have not and it is hard to see why.
"While we understand the pressures airlines face, the reality is that rising fuel prices and costs affect everyone and every business.
"In other industries, legitimate expenses like fuel are built into the product price, not treated as extras. It should be no different in air transport."
______________________________________________
Can't charge commission on a surcharge.
FLIGHT Centre Limited managing director Graham Turner today described airlines' fuel surcharge policies as outdated and inappropriate.
Mr Turner said rather than applying these additional surcharges, airlines should simply incorporate fuel expenses into upfront ticket prices, as was the case in every other business in the world.
"Historically, surcharges were introduced only as an initial cost recovery method after oil prices started to increase," he said.
"Then, when it was clear prices were not going to decrease significantly, they were to be incorporated into ticket prices. This made it less confusing and misleading for customers and showed clearly what the fares actually were.
"Already, airlines such as Emirates and Jetstar have done exactly this. Others have not and it is hard to see why.
"While we understand the pressures airlines face, the reality is that rising fuel prices and costs affect everyone and every business.
"In other industries, legitimate expenses like fuel are built into the product price, not treated as extras. It should be no different in air transport."
______________________________________________
Can't charge commission on a surcharge.