Qantas Considering Another Lift In Fuel Surcharges

[peter991]

Qantas considering another lift in fuel surcharges

Wednesday, 27 February 2008

Australia's national carrier is said to be once again considering a lift in fuel surcharges as global oil prices continue to lift to record numbers.

Qantas is reported to be evaluating the need for another lift in fuel surcharges after Qantas heads, Geoff Dixon and Peter Gregg refused to rule out another lift in the near future at the airline’s interim report.

“We’ll continue to look at it,” said Mr Gregg, Qantas CFO. “Fuel price rises have been going [up] for a long time now.”

Also not committing to a definite answer, Mr Dixon, Qantas CEO said that they would have to “take into account” the record prices.

Peter

Comment: Fuel surcharges really annoy me. They are a part of the cost of doing business. They also annoy travel agents as the agent only gets a commission on the ticket price (minus the fuel surcharge and taxes and charges). Imagine going to have dinner at a MK restaurant. You finish the meal and the waiter gives you a bill of 200 baht. Quite reasonable you think. When you go to pay the 200 baht bill, the cashier tells you the complete bill is 800 baht. he cashier tells you the extra is for supplying cutlery and crockery, cooking the food, transport costs, electricity and ambiance. How would you feel?

[lazeeboy]

these surcharges are getting way out of hand

[peter991]

Question: Don't most airlines hedge the cost of fuel by ordering in advance at a set price? I know a lot of heavy vehicle companies put their fuel out to tender every 12 months and lock in the price so they have a win-win situation. If the pump price is below their agreed price, they pay the pump price. If the pump price is above the agreed price, they pay the agreed price.

Peter