+ Reply to Thread
Results 1 to 6 of 6

Thread: Back in Oct 2004 - Interesting article on QF Fuel surcharges.

  1. #1
    Member AlphaVictor's Avatar
    Join Date
    Dec 2005
    Location
    Sydney
    Posts
    149

    Question Back in Oct 2004 - Interesting article on QF Fuel surcharges.

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

    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

  2. #2
    Established Member drron's Avatar
    Join Date
    Jul 2002
    Location
    Sunshine Coast
    Posts
    2,894
    FF Prog
    QC life,AA EX-Exp.LTG,HH diamond,SPG plat,Iprefer

    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.

  3. #3
    Established Member dajop's Avatar
    Join Date
    Jul 2002
    Location
    SIN
    Posts
    2,538
    FF Prog
    QF-WP SQ-PPS Gold-NZ/HH/BD

    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.

  4.    Sponsored Links



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



  5. #4
    NM
    NM is online now
    Moderator NM's Avatar
    Join Date
    Aug 2004
    Posts
    12,553
    FF Prog
    AA Exec Plat; QF LTG; PC Plat; HHonors Gold

    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.

  6. #5
    Senior Member oz_mark's Avatar
    Join Date
    Jun 2002
    Location
    Melbourne
    Posts
    9,481
    FF Prog
    QF FF, SQ KF, DJ Velocity, MH enrich

    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: A|Club: Gold, PC Plat, Hyatt GP: Plat, HH: Silver, SPG: Gold
    Car: Avis preferred, Hertz #1 Club Gold

  7. #6
    Member BAM1748's Avatar
    Join Date
    Jul 2008
    Location
    Sydney
    Posts
    308

    Re: Back in Oct 2004 - Interesting article on QF Fuel surcharges.

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


    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.

+ Reply to Thread

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

     

Similar Threads

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

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts

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