Is the fuel surcharge a rip-off?
Thread Starter
Is the fuel surcharge a rip-off?
As the cost of oil is reducing day by day to a point where it's below US$50 per barrell, is it time for airlines to really reduce or even eliminate their various fuel surcharges? With such a drop from its peak price, reductions of more than the token few dollars have to be in order. If the airlines are really out of pocket, because of past costs, surely they should increase the basic cost of their product: in other words, increase fares? No wonder there has been a slump in forward demand!
Join Date: May 2001
Location: Back again.
Posts: 1,140
Likes: 0
Received 0 Likes
on
0 Posts
Fuel surcharge? Any novice reading "fuel surcharge" could be pardoned for thinking that the airlines introduced the surcharge to cover rising fuel prices. Any cynics among us would suspect it was introduced to increase ticket prices while trying to convince the consumer that ticket prices were still a bargain as advertised.
If it walks like a duck, quacks like a duck and smells like a duck; it's a duck.
If it walks like a duck, quacks like a duck and smells like a duck; it's a duck.
Join Date: Dec 2007
Location: Sydney, Australia
Posts: 86
Likes: 0
Received 0 Likes
on
0 Posts
Some Airlines were slow to add a Fuel Surcharge eachtime the price spiked so give them a few months to recoop their losses but after a few months they should decease the surcharge!
Join Date: Apr 2008
Location: down south
Posts: 71
Likes: 0
Received 0 Likes
on
0 Posts
Fuel surcharge is a con! Full stop!
How many other industries are able to maintain profit margins by adding a surcharge to cover an additional cost to the business.
Could understand if the company was going backwards but these airlines are turning over massive profits (especially the oz darling QANTAS) and able to add a surcharge to make sure the return to sharholders is maintained.
Put it this way does your local corner store add a divorce surcharge because the wife left and took half the cash so he now is unable to mainatin his viability? Not the same you say....well its an unforseen cost that is threatining the company. Would you buy it? No of course not!
Why do we buy the airline surcharge....cos they all do it what choice do we have?
How many other industries are able to maintain profit margins by adding a surcharge to cover an additional cost to the business.
Could understand if the company was going backwards but these airlines are turning over massive profits (especially the oz darling QANTAS) and able to add a surcharge to make sure the return to sharholders is maintained.
Put it this way does your local corner store add a divorce surcharge because the wife left and took half the cash so he now is unable to mainatin his viability? Not the same you say....well its an unforseen cost that is threatining the company. Would you buy it? No of course not!
Why do we buy the airline surcharge....cos they all do it what choice do we have?
