Virgin Blue to increase fuel surcharge
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Virgin Blue to increase fuel surcharge
Here we go again..
As DJ "has held off increasing its surcharge for nearly three years" is it reasonable to imply that they've been ripping off some of their so-called guests? Like, is any airline or other business that charitable?
Now, a litre of aviation fuel is around a dollar. (according to IATA, the average in the Pacific region a couple of weeks ago was about 257 cents a gallon - presumably both US types.). This works out at around a dollar Aust a litre. As a B737 burns 3100kgs or thereabouts (or 3900 litres) Sydney/Melbourne, the cost would be around say AU$4000. If they carry 150 punters, that's a surcharge income of AU$3600. Is this a rip off or are the shorthaul "guests" subsidising the "guests" whar have longer journeys?
It's high time the media and the ACCC started to have a good look at this impost. As they spend plenty of time scrutinising the fuel companies over the price of petrol without much joy, they may find fuel surcharge investigations offer more fertile pickings.
Virgin Blue to increase fuel surcharge
December 27, 2007 - 2:41PM
Virgin Blue Holdings Ltd has announced that it will increase its fuel surcharge from February 2008 due to continued increases in fuel prices.
The surcharge on Virgin Blue domestic flights will increase from $19.00 to $24.00 per person per sector, it said.
On outbound international flights operated by Pacific Blue and Polynesian Blue, the surcharge will rise from $35 to $45 per person per sector.
"The airline has held off increasing its surcharge for nearly three years. The last increase was in April 2005," it said.
"Since then, the price of jet fuel has risen from $US66.33 per barrel in April 2005 to $US112.60 per barrel today."
Virgin Blue said the new surcharge would come into effect after midnight on February 1, 2008, giving travellers time to make bookings at current surcharge levels.
Qantas last lifted its surcharges in early August when jet fuel prices were around $US85 a barrel.
Its domestic surcharge is currently $52 on a return ticket. It charges a range of prices on its international routes, such as a $370 surcharge on a return ticket to Europe and $290 return to the US mainland.
At 1340 AEDT, Virgin Blue shares had lifted seven cents, or 3.54 per cent, to $2.05
December 27, 2007 - 2:41PM
Virgin Blue Holdings Ltd has announced that it will increase its fuel surcharge from February 2008 due to continued increases in fuel prices.
The surcharge on Virgin Blue domestic flights will increase from $19.00 to $24.00 per person per sector, it said.
On outbound international flights operated by Pacific Blue and Polynesian Blue, the surcharge will rise from $35 to $45 per person per sector.
"The airline has held off increasing its surcharge for nearly three years. The last increase was in April 2005," it said.
"Since then, the price of jet fuel has risen from $US66.33 per barrel in April 2005 to $US112.60 per barrel today."
Virgin Blue said the new surcharge would come into effect after midnight on February 1, 2008, giving travellers time to make bookings at current surcharge levels.
Qantas last lifted its surcharges in early August when jet fuel prices were around $US85 a barrel.
Its domestic surcharge is currently $52 on a return ticket. It charges a range of prices on its international routes, such as a $370 surcharge on a return ticket to Europe and $290 return to the US mainland.
At 1340 AEDT, Virgin Blue shares had lifted seven cents, or 3.54 per cent, to $2.05
Now, a litre of aviation fuel is around a dollar. (according to IATA, the average in the Pacific region a couple of weeks ago was about 257 cents a gallon - presumably both US types.). This works out at around a dollar Aust a litre. As a B737 burns 3100kgs or thereabouts (or 3900 litres) Sydney/Melbourne, the cost would be around say AU$4000. If they carry 150 punters, that's a surcharge income of AU$3600. Is this a rip off or are the shorthaul "guests" subsidising the "guests" whar have longer journeys?
It's high time the media and the ACCC started to have a good look at this impost. As they spend plenty of time scrutinising the fuel companies over the price of petrol without much joy, they may find fuel surcharge investigations offer more fertile pickings.
