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Airfares and the cost of fuel ...


gobbledonk

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Is it just me, or did airfares between Oz and Asia (Sillypore/KL/BKK) go up over the last couple of months ? I checked Air Asia, Thai and MAS back in April and then again yesterday - even Air Asia seems to have put their return fares up by $300 or so. At a time when our dollar has never been stronger, I have to assume that this is in line with fuel increases and warmer weather (more travellers) in the Northern Hemisphere. Anyone ?

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  • 2 weeks later...

3 main reasons, Gobble:

 

1. Airlines fucked up their fuel hedging and now WE have to pay more for their stupidity.

 

2. With the AUD so high, there are a LOT more people travelling. Not many spare seats these days. So, simple supply and demand. More demand, the more you pay for it.

 

3. Airlines have for a long time used "fuel surcharges" as a scam of sorts to they can lower the fare component of the total price, raise the fuel surcharge component of the total price, and then they don't have to pay as much commmission to travel agents. (eg. Average "fuel surcharge" on a return ticket to Europe from Oz now is about $1000.

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3 main reasons, Gobble:

 

1. Airlines fucked up their fuel hedging and now WE have to pay more for their stupidity.

 

2. With the AUD so high, there are a LOT more people travelling. Not many spare seats these days. So, simple supply and demand. More demand, the more you pay for it.

 

3. Airlines have for a long time used "fuel surcharges" as a scam of sorts to they can lower the fare component of the total price, raise the fuel surcharge component of the total price, and then they don't have to pay as much commmission to travel agents. (eg. Average "fuel surcharge" on a return ticket to Europe from Oz now is about $1000.

I am of the opinion that if some smart ass took them to court they would be smacked big time, especially with these frequent flyer programs ... as they advertise a flight my miles earned, and this surcharge is simply a gouging back of the giveaway :beer:

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I am of the opinion that if some smart ass took them to court they would be smacked big time, especially with these frequent flyer programs ... as they advertise a flight my miles earned, and this surcharge is simply a gouging back of the giveaway

 

Exactly. A mate of mine just booked a flight SYD - London - Sydney with Qantas using FF points.

 

Sure - "free flight", but the "charges" were over $1000. They are cunts.

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"The whole industry seems to be claiming that they are on their knees financially"

 

That worked for the banking industry, US auto industry and has worked for the airlines in the past.

 

rule 21... make business "too big to fail" then strip it of cash, go to taxpayer, get bail out, thank you very much :)

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rule 21... make business "too big to fail" then strip it of cash, go to taxpayer, get bail out, thank you very much :)

 

Seems like some exec's have taken a page out of the NYC mafia handbook. (Acquiring profitable and well-capitalized businesses was a favorite tactic; load them down with debt; launder the revenue/loan proceeds; then put the company in bankruptcy...leaving suppliers/holders of notes on the hook.)

 

HH

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