ddd
15th Jun 2008, 17:57
One wonders how they are going to fill these big birds?
Emirates increases A380 fares sharply
Dubai (agencies)
Dubai-based Emirates Airlines has increased fares drastically for its first A380 flight from Dubai to New York. The service is scheduled to begin on August 1.
Currently, a business class return fare on the plane is priced at Dh23,310, while earlier this year it was about Dh15,570.
"The prices that Emirates charges for its tickets are continually reviewed and adjusted whenever necessary, to reflect changes in the industry’s environment and enable us to invest in top-quality service and products," a spokesperson from the airline said in an e-mailed statement.
Hussain Tehrani, general manager of Al Rais Travel, said: "At the time Emirates launched the A380 flight, we didn’t expect the fares to go so high." He said the main reason for the price increase was a rise in operational costs.
"It’s not just the cost of fuel. There are a lot of other costs that will increase such as those related to operations, staff and investment," he said.
Tehrani called this a "chain reaction", adding that everything will now have to be re-evaluated, as all other airlines will also reconsider their fares.
"The product - A380 - is not exclusive," said Tehrani, adding that Singapore Airlines’ A380 fares had also gone up.
Jayram Iyar, general manager of Sharaf Travel, said high oil prices were specifically to blame for Emirates’ decision. "Normal fares have not gone up; only the surcharge has."
The Emirates spokesperson said, "The staggering increase in fuel prices has had an inflationary effect on all our operational costs." He added that the airline is working towards minimising the effect on its customers.
Iyar said that in times such as these, airlines will try to maximise their revenues. "They know it’s a superior product [the A380] and there is no competition on this route. They want to make sure they get a better return on their investment from day one," he said. On the competition for connecting flights, Iyar said there will still be demand. "There are people who don’t like to travel the whole distance in one stretch."
Emirates increases A380 fares sharply
Dubai (agencies)
Dubai-based Emirates Airlines has increased fares drastically for its first A380 flight from Dubai to New York. The service is scheduled to begin on August 1.
Currently, a business class return fare on the plane is priced at Dh23,310, while earlier this year it was about Dh15,570.
"The prices that Emirates charges for its tickets are continually reviewed and adjusted whenever necessary, to reflect changes in the industry’s environment and enable us to invest in top-quality service and products," a spokesperson from the airline said in an e-mailed statement.
Hussain Tehrani, general manager of Al Rais Travel, said: "At the time Emirates launched the A380 flight, we didn’t expect the fares to go so high." He said the main reason for the price increase was a rise in operational costs.
"It’s not just the cost of fuel. There are a lot of other costs that will increase such as those related to operations, staff and investment," he said.
Tehrani called this a "chain reaction", adding that everything will now have to be re-evaluated, as all other airlines will also reconsider their fares.
"The product - A380 - is not exclusive," said Tehrani, adding that Singapore Airlines’ A380 fares had also gone up.
Jayram Iyar, general manager of Sharaf Travel, said high oil prices were specifically to blame for Emirates’ decision. "Normal fares have not gone up; only the surcharge has."
The Emirates spokesperson said, "The staggering increase in fuel prices has had an inflationary effect on all our operational costs." He added that the airline is working towards minimising the effect on its customers.
Iyar said that in times such as these, airlines will try to maximise their revenues. "They know it’s a superior product [the A380] and there is no competition on this route. They want to make sure they get a better return on their investment from day one," he said. On the competition for connecting flights, Iyar said there will still be demand. "There are people who don’t like to travel the whole distance in one stretch."