[Mal]

http://www.qantas.com.au/agents/dyn/qf/news/200606/0675

"Effective for sales made and bookings ticketed on/ after 01 July 2006 adjustments will be made to domestic base fares and the way Qantas collects noise levies and baggage screening charges from passengers. These changes will ensure that the all-inclusive domestic one-way fares between two city pairs is the same regardless of the direction of travel (eg. the SYDMEL Red e-Deal fare will equal the MELSYD Red e-Deal fare) "
...
"New all-inclusive one way fares will not be greater than the higher price currently advertised for fares between those cities. For example, MEL-SYD is currently advertised at $121 while SYD-MEL is advertised at $118. The new all-inclusive price between SYD and MEL will be $121 in either direction."
...
"These changes will result in some all inclusive fare levels increasing, and others decreasing. On average, the fare change for a one-way fare is 54 cents or for a return fare $1.08. "

[DPG]

Originally Posted by Mal

...
"New all-inclusive one way fares will not be greater than the higher price currently advertised for fares between those cities. For example, MEL-SYD is currently advertised at $121 while SYD-MEL is advertised at $118. The new all-inclusive price between SYD and MEL will be $121 in either direction."

Got to love it... Fuel Surcharge Increase, Credit Card Fee Surcharge increase, then 'even out the fares' increase!

When will it end... Surely if Qantas was wanting to even out the fares, they could have picked the number in between rather than the higher of the two...

Little things like this are really starting to take the piss!

D P G

[JohnK]

Originally Posted by DPG

Little things like this are really starting to take the piss!

Don't forget that they are only posting a A$670 million profit this year.

They have to find another way of funding Geoff's bonus.

[DPG]

What frustrates me is that I am an ardent supporter of QF in an industry which has been completely kicked in the head by QF! I often have debates with my colleagues (who have not flown QF recently) as to the improvements that have occurred internationally.

But stupid price hikes like this make it more difficult for me to support QF. It is just petty changing the base fare as the taxes are different out of one port when compared to another.

Grrrr this just irritates me!

D P G

[JohnK]

Originally Posted by DPG

Grrrr this just irritates me!

You are not alone.

I just wish this penny pinching would just stop and QF to finally show some honesty to their loyal customer base. But unfortunately the arrogance shown by the current management continues to shine through.

[Kiwi Flyer]

If it was truly evening out the fares the average change would be zero. Grrrr.

I didn't think QF could levy taxes on its own so they're really making increases to selected base fares.

Let's see - in 6 months time if they dont try to even out the base fares (again at the highest level).

[jasonja3]

IMO, just another reason why we should have more competition both domestic and international.

[DPG]

Originally Posted by Kiwi Flyer

If it was truly evening out the fares the average change would be zero. Grrrr.

Kiwi Flyer you have hit the nail on the head... Another example of QF 'spin'...

You are right, evening out should equal zero!

D P G

[Mal]

BTW, the title of "Qantas to "even out" fares between city pairs" was my creation - not Qantas spin, although there is already enough in the press release to make up for it

I can't see this as revenue neutral. Not with an average change of +$0.54/sector. (remember to times that by the high number of QF domestic flights per year)... We won't know for sure until 1 July, but I don't foresee any cheaper fares from this change - at least not on the popular routes.

The article also discusses some "tax" changes happening:

"Domestic tax changes include:

* Noise levy (QK) of $1.35 applying per jet passenger on both arrival and departure in SYD and ADL airports
* Baggage Screening charges (WG) applying as a flat rate of $3 per domestic departure

These tax changes will not materially impact the total amount collected by Qantas to cover these charges. "

I think it's time for the ACCC to wield a big stick at Qantas. All I see from them are examples of them trying to gouge me in as many different ways as possible. I wouldn't be suprised if they're set for another "fuel fine" increase soon as well.

[NM]

I have no problem with a rise in airfares. The fares should reflect the cost of delivering the product, and if the cost goes up then so should the fares. But this theory should apply equally to aspects of the cost base, including fuel. So if the cost of fuel goes up, then so should the fare - the base fare, not add it as a surcharge.

The same thing should apply to all aspects of costs, including airport fees and noise levies etc. These should not be quoted separately, but just included in the air fare.

When my company charge me out to our clients, they don't charge them for my base cost and then add a surcharge for my superannuation costs, payroll tax, insurance surcharge, professional affiliation membership levy, laptop provision, mobile phone costs etc. There is an all-inclusive cost that then has a margin applied to obtain the selling price. The customer is not told exactly how that price was determined and industry competition plays a significant part in determining the selling price. The company needs to understand all the components that make up the cost to ensure the margin between cost and sell price is positive.