Fuel Surcharges. Flight Centre.
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Fuel Surcharges. Flight Centre.
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FLIGHT Centre Limited managing director Graham Turner today described airlines' fuel surcharge policies as outdated and inappropriate.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."
FLIGHT Centre Limited managing director Graham Turner today described airlines' fuel surcharge policies as outdated and inappropriate.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.
Join Date: May 2001
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Tell the customer what all those anonymous taxes and charges are actually for?? - and worse still have to pay the agents commission on at least some them??
Rediculous suggestion!
Rediculous suggestion!
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How about a surcharge to cover the CEO's outrageous salary. Call it the Dixon Surcharge.
While at it they could introduce baggage handling surcharge, catering surcharge, security surcharge, etc. The possibilities are enormous. Then we could have $59 tickets to London.
While at it they could introduce baggage handling surcharge, catering surcharge, security surcharge, etc. The possibilities are enormous. Then we could have $59 tickets to London.
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Two issues here: 1. Commission on the ticket. I'm sure that East West Loco will remind us as to what's that's worth, if anything; and secondly, I agree that the consumer should have transparency. I don't see the Sydney Cab Drivers adding a fuel surcharge everytime there is a change in fuel price, and they don't get to benefit from hedging!
On this occasion I agree with Mr Turner.
On this occasion I agree with Mr Turner.
