Top

Go Back   The Australian Frequent Flyer Online Community > Community Resources > Open Discussion

Reply

Registered Users have the option of removing this and all other advertisements.  More

 
LinkBack Thread Tools Display Modes
Old 19th November 2008, 10:47 PM   #1 (permalink)
Member
 
AlphaVictor's Avatar
 
Join Date: Dec 2005
Location: Sydney
Posts: 118
Question Back in Oct 2004 - Interesting article on QF Fuel surcharges.

I was pondering the other day if all the fuel surcharges were removed domestically what airfares would fall to, or would they fall at all? So trying to find exact amounts of QF fuel surcharges wasn't that easy as they are hidden in with insurance in the YQ box (there's a whole court case about this - but that's another post)

The funny thing is that you can access travel agents section of Qantas with no password to view all the details of the number and costs of fuel surcharges.

Qantas Industry Sales Site - Policies and Procedures - Qantas Fuel Surcharge

It states that the current common domestic fuel surcharge is USD$23 per sector, which hasn't changed since 2007 when it was USD$26 per sector.
If I had a day or two I'd go through them all.

That got me thinking - lets go back to the beginning or as close as I can to the beginning. Hence the SMH article from 2004.

Qantas raises fuel surcharge - Business - www.smh.com.au

I'm no expert, but when oil was at USD$55 in 2004 (and the AUD was at .72) and Qantas had "some" hedging. Surcharges were as follows

Domestic AUD$12 per sector (USD$8.60)
International AUD$29 per sector (USD$20.88)

(I know oil hasn't been that long at USD$55 in 2008, but continue reading)

Now compare this with the current fuel surcharges (Nov 14 2008) from the Qantas Travel Agents section. (Bearing in mind that this YQ surcharge does have a $2 - $3 USD insurance component)

Domestic USD$23 per sector (AUD$35.93)
To London / Frankfurt USD$180 per direction (AUD$281)
USA / Canada USD$150 per direction (AUD$234) -

ETC

When the journey is between AUS and India
- For travel between gateway cities in Australia and
BOM/DEL – online Qantas – for international sectors
- USD 150.00 per direction
USD 150.00 on all sectors between Australia and JNB
USD 100.00 on all sectors between SIN and India
USD 106.70 on all sectors into/out of HKG
USD 70.00 on all sectors between Australia and NZ
USD 115.00 on all other sectors

I may not have all the facts, but I do find it interesting and concerning at the same time. Read into it however you like. If there is something I've missed please fill me in

Thanks!


Last edited by AlphaVictor; 20th November 2008 at 08:54 AM. Reason: spelling
AlphaVictor is offline   Reply With Quote

Sponsored Links
Dell Discount Codes
Use these discount coupon codes to purchase Dell equipment and save!

Free Nokia E63
Free Nokia E63 Smartphone on a $29 Cap Plan + FREE FIRST 3 MONTHS

Rewards Central
Earn rewards for emailing, doing surveys, clicking links & shopping

Registered Users have the option of removing this and all other advertisements.  More

Old 19th November 2008, 11:09 PM   #2 (permalink)
Established Member
 
drron's Avatar
 
Join Date: Jul 2002
Location: Sunshine Coast
Member of: QC life,AA EX-Explat.,HH diamond,SPG plat,Iprefer
Posts: 1,628
Re: Back in Oct 2004 - Interesting article on QF Fuel surcharges.

Just like mortgage interest rates-quick to go up,slow to come down.
some economic forecasters are now predicting oil will fall below $40 a barrel-that will make justification of continuing surcharges interesting.My guess is the surcharge will go but fares go up approx the same amount.
drron is offline   Reply With Quote
Old 20th November 2008, 09:28 AM   #3 (permalink)
Established Member
 
dajop's Avatar
 
Join Date: Jul 2002
Location: SIN
Member of: QF-WP SQ-PPS Gold-NZ/HH/comp DJ
Posts: 1,769
Re: Back in Oct 2004 - Interesting article on QF Fuel surcharges.

Quote:
Originally Posted by drron View Post
.My guess is the surcharge will go but fares go up approx the same amount.
Which would be fine, and i admire your optimism.

My guess (much more cynical) would be that base fares will fall, but surcharges will fall very slowly, just because of the revenue they bring in from award and RTW bookings.
dajop is offline   Reply With Quote
Old 20th November 2008, 11:11 AM   #4 (permalink)
NM
Moderator
 
NM's Avatar
 
Join Date: Aug 2004
Member of: AA Exec Plat; QF LTG; PC Plat; HHonors Gold
Posts: 11,440
Re: Back in Oct 2004 - Interesting article on QF Fuel surcharges.

Quote:
Originally Posted by drron View Post
Just like mortgage interest rates-quick to go up,slow to come down.
some economic forecasters are now predicting oil will fall below $40 a barrel-that will make justification of continuing surcharges interesting.My guess is the surcharge will go but fares go up approx the same amount.
I have no problem with that happening. It would be interesting to compare some fares now to what they were in 2004. I suspect the base fare component is lower (in real terms) and the fuel surcharge is higher. So just remove the farce called a fuel surcharge and include it in the fare just like almost every other business does.
__________________
NM aka Nelly Mobbs
NM is offline   Reply With Quote
Old 20th November 2008, 11:37 AM   #5 (permalink)
Senior Member
 
oz_mark's Avatar
 
Join Date: Jun 2002
Location: Melbourne
Member of: QF FF, SQ KF, DJ Velocity, MH enrich
Posts: 8,196
Re: Back in Oct 2004 - Interesting article on QF Fuel surcharges.

While Crude Oil and Jet Fuel prices are highy correlated, the gap between the price of the two has spread over the last few years, and while crude prices are back down to the ~2004 , the same is not true of Jet Fuel, which still needs to come down a bit more.

IATA publish some interesting graphs (Price Development).

Having said that, there really is not much excuse for the slowness in reducing fuel surcharges, and indeed the current situation is a farce.
__________________
Air: QFF Gold (LTS)
Hotel: PC Plat, Hyatt GP: Plat, HH: Silver, SPG: Gold
Car: Avis preferred, Hertz #1 Club Gold
oz_mark is offline   Reply With Quote
Old 20th November 2008, 05:10 PM   #6 (permalink)
Member
 
BAM1748's Avatar
 
Join Date: Jul 2008
Posts: 103
Re: Back in Oct 2004 - Interesting article on QF Fuel surcharges.

Don't forget, crude prices that effect us are generally the Singapore price, but often you here the price of West Texas quoted on news broadcasts.

Other but less quoted is Brent. (there are many as I think back to by days at Exxon)

So you sometimes see other locations which are selling for less, but the Singapore price is usually more expensive.

BAM1748 is offline   Reply With Quote

Sponsored Links
Dell Discount Codes
Use these discount coupon codes to purchase Dell equipment and save!

Rewards Central
Earn rewards for emailing, doing surveys, clicking links & shopping

Looking for Flatmates?
Post Your Room for FREE on EasyRoommate! 1000's of profiles with pics.

Registered Users have the option of removing this and all other advertisements.  More

Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On


Similar Threads
Thread Thread Starter Forum Replies Last Post
Airline fuel surcharges reach $1000 Mal Travel News 11 10th October 2008 09:02 AM
I survived a RTW trip on (mainly) QF in economy... kpc Trip Reports and Trip Photos 18 29th May 2008 05:25 PM
QF Getting back to Platinum - a Challenge file51 Your Questions 30 9th February 2008 06:48 PM
To London & Back - QF J v BA CW with a twist Tooner Trip Reports and Trip Photos 50 16th December 2007 09:25 PM
Fuel Surcharges and Fuel Costs NM Open Discussion 16 23rd January 2007 06:18 PM


All times are GMT +10. The time now is 11:46 AM.


Powered by vBulletin Version 3.8.1. Copyright ©2000 - 2009, Jelsoft Enterprises Ltd.
SEO by vBSEO 3.3.0 RC2 ©2009, Crawlability, Inc.
Bottom

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98