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RYANAIRS STEALTH LEVY

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Old 17th Feb 2006, 13:27
  #21 (permalink)  
 
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Of course the fares advertised by the low fare carriers are [B]not[B]the fares you have to pay - it's as simple as that !

Let's face it, 99p or whatever simply has to be an impossible fare for any airline to stay in business, let alone generate the profits claimed/reported by these carriers.

However, a scenario -

What would be the public's reaction or the different Government Agencies' reactions if, say, Aldi or Carrefour or Tesco were to place huge adverts in the press announcing, say, televisions at £ 50....and then in the small print stating that each purchase was subject to £ 125 Handling Charge, £25 Packaging Charge, £ 45 Customer Service Charge, and the TVA on top of all that....

ie, you simply could not buy it for less than ( if I've done the sums correctly ) £245.

How long before this sort of blatant cheating would be stopped in the stores ?

Probably within days !!

Same with these carriers - you simply cannot pay the fares advertised, so how long will it be before one of the numerous muppets in the Euro Government gets off his a*se and stops these people

Having said all that, the all-in prices are still bloody good compared to the way the industry ripped off the public for decades....
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Old 17th Feb 2006, 16:55
  #22 (permalink)  
 
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A buddie of mine was checking a flight .... Luton to Gothenburg ...... Ticket price starts at 79 pence !!!! .... and a clear statement by Ryanair that .....

Fares are exclusive of taxes fees & charges which do not exceed £15.10
She seemed pleased with the offer .....
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Old 17th Feb 2006, 22:07
  #23 (permalink)  
 
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Originally Posted by Hussar 54
Of course the fares advertised by the low fare carriers are [B]not[B]the fares you have to pay - it's as simple as that !
Let's face it, 99p or whatever simply has to be an impossible fare for any airline to stay in business, let alone generate the profits claimed/reported by these carriers.
I would tend to agree but it would appear that Ryanair dont. In the Nov. 2005 complaints bulletin of the Irish Advertising Standards Authority (here is the link), a complaint was made (yet again) that Ryanair's advertising must quote taxes and charges as part of the total price...

"Ryanair stated that they do not include the charge levied for taxes and charges in their advertised prices on the basis that the costs are collected on behalf of third parties."

So, at least for the Irish market, if Ryanair claim 100,000 seats from €4.99, it would seem those quoted prices must cover all of their own costs. Then again, in the same ASAI bulletin, you may notice another complaint, which Ryanair refused to respond to, centered around an offer of "1 million seats for free..."

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Old 17th Feb 2006, 22:23
  #24 (permalink)  
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Originally Posted by Phileas Fogg
Just go to the world's favourite airline website and it will clearly state a sector far of perhaps GBP22.00, as with Ryanair, it gives an indication that this is the price you will pay, will you boIIocks!
If you're referring to BA, this is no longer true.

If you go to BA's UK website, all fares shown in the Fare Explorer are now displayed inclusive of an estimate (usually an over-estimate) of all the extras, estimated on a half round-trip basis (if you're booking a straightforward return trip). The final price is broken down into base fare and total paid, but the total is about the sum of the half round-trip fares displayed earlier in the process.

So, for example, looking at LHR-AMS-LHR for some random dates in March, if I pick a "£45" flight out and a "£45" flight back, I then find that the accurate total price is £34 base fare + £54.80 taxes and other extras = £88.80.
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Old 18th Feb 2006, 08:16
  #25 (permalink)  
 
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KEV

No doubt the low fare carriers will argue this case, that the money they collect on behalf of others should not be confused with their own income

But aren't these simply the costs of doing business and a neccessary part of their income and cost streams ?

In a similar vein, perhaps any Supermarket or Business which sells manufacturers' goods on a ' sale or return ' basis ( as many retailers and wholesalers are now beginning to do ) could perhaps advertise the television at a Special Price of £ 50, as this low price is equivalent to their gross income ( ie, the income which they will keep towards their own costs ) and then state in miniscule small print or on another page of their website that the following additional costs apply -

Manufacturers' Costs - £ 145 ( fairly obviously collected on behalf of someone else )

Local Property Taxes collected on behalf of the City - £ 25 ( could be argued that the Retailer has to pay approximately this amount per shopper directly to Government Agencies for the premises, irrespective of the number of shoppers )

Temporary Fuel Surcharge - £ 5 ( could be argued that in setting their own price of £ 50, thay had assumed that gas/electricity/diesel would each be £ xx per unit/litre and was currently £ zz )

Sales Tax - £ 20 ( fairly obviously collected on behalf of someone else )

And then, finally, add that if the customer makes use of a Shopping Trolley, there will be an additional fee of £ 35 ( again, could be argued that as the trolleys are a user-based cost and the customer has an option to use one or not, but has to pay for it if he/she does, then this need not be added to the base price of £ 50 )

Again, I wonder how long the Government Agencies would permit this sort of blatant deception in the original Advert ( as I said earlier whether in Print, on TV, or as banner headlines on their website) that the Televison's price is just £ 50.

Quite obviously in this scenario the full, actual price payable is NOT £ 50 and the buyer has no option or possibility to purchase the television for anything less than £ 245 ( again, if I've done the maths correctly ) which is basically what my issues are with the fares as currently advertised by the industry.
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Old 18th Feb 2006, 17:17
  #26 (permalink)  
 
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Let's face it, 99p or whatever simply has to be an impossible fare for any airline to stay in business, let alone generate the profits claimed/reported by these carriers.
Not if you receive subsidies from the airport to which you are flying.

if , for example, you miss a flight with Ryanair you would expect to lose just the ticket fare and credit card booking

However if you try and recover the PSC you will find Ryanair will make it v. difficult to do so
- you haven't passed through to Airside so haven't been through the check; why should you have to pay ...
I'm sure that this scenario generates a hefty profit for FR. When I worked for them, they were very fussy about having accurate records of NO-SHOWS for the purposes of recovering taxes fees and charges that were not required to be passed on to the "3rd party". Due to the fact that they also overbook by 4%, even if the flight was full, they would still be able to recover 7 lots of T,F,&C's per flight.

I've since heard that they are now happily selling 200 seats on some sectors, when the capacity is only 189. (But state quite clearly on-line that they are one of the only carriers that doesn't overbook!) I guess that's why they have a 40min check-in deadline.
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