Fears over Airline fuel surcharges

FEARS are growing that other airlines will follow British Airways and slap another fuel surcharge on airline fares.
This follows a decision by the UK flag carrier airline to increase its fuel surcharge for the fifth time on long haul flights following the esclating
cost of oil.
Already award-winning Far East based Singapore Airlines has also raised its surcharge.
From this Monday, British Airways will charge £30 per sector - £60 for a return trip - up from £24 per sector. Short haul flights will remain
unchanged at £8 per sector, £16 on a return journey.British Airways Commercial Director Martin George insisted the airline had no choice but to pass the rising cost of fuel onto customers after the price of oil hit $70 a barrel in the aftermath of Hurricane Katrina.
"Our fuel costs remain a real burden," he said. "Our fuel bill of around £1.6 billion is now our second largest costs after employee costs.
"The latest fuel surcharge is regrettable but we have little choice but to pass some of our extra costs onto our customers. It now costs 400 per cent
more than it did in December 2001 to fill a plane."
The BA executive argued that it was better to be upfront about the charges rather than hiding the costs by raising fares behind the scenes "like some
other airlines do."
A travel industry spokesman said there was now a danger that some of BA's competitors would follow suit.
However, some of the main budget or so called low-cost airlines have consistently used BA's fuel surcharges as a stick to beat the airline with,
and are unlikely to be influenced by BA's decision.
BA first introduced fuel surcharges in May 2004 when a £5 levy was introduced for short and long haul flights. In August it increased to £12
for a return flight, in October to £20, in March this year to £32 and Juneto £48.
Singapore Airlines meanwhile said it is increasing its surcharge by $10 to $100 for a return flight.

Latest pages

    Archives :: 2005 :: 2004 :: 2006 :: 1999 :: 2007 :: 2008 
    Content Management with U DO from Libertas Solutions Northern Ireland Web Design