Mentors Posted June 4, 2008 Report Share Posted June 4, 2008 Rising international airfares, mainly due to escalating fuel prices, are forcing big businesses to cut down on executive travel and small ones to cancel all overseas trips. Lang Junxiong, owner of a small manufacturing company in Jinhua, Zhejiang province, said he used to fly to Europe five or six times a year to meet buyers or attend trade fairs. "However, since the beginning of this year, I have been talking to my customers mainly on the phone to save money," Lang, boss of Langshi Industry and Trade, said. His customers understand. "They, too, are feeling the impact of rising airfares," Lang said. "It's a global phenomenon." American Express Business Travel predicted that corporations will continue to be challenged to find new ways to keep travel budgets in check. It has seen corporations beginning to focus internally, implementing cost containing strategies to soften the blow of external pricing pressures. What is more, companies are also starting to centralise business travel under procurement departments. A recent report by American Express said oil price hikes was one of the main factors hitting business travel. Oil prices have smashed through the US$130 per barrel mark. http://www.asianewsnet.net/news.php?aid=17197 so, no good idea when the airlines still think about cut their meal service and water on board with more expensive tickets and poor service, who wants to fly? :smirk: Link to comment Share on other sites More sharing options...
cavanami Posted June 4, 2008 Report Share Posted June 4, 2008 I checked prices, BKK <>Chicago and they added a 12,000 Baht "fuel surcharge" on top of the ticket price (total price: 60,000 Baht). Link to comment Share on other sites More sharing options...
Mentors Posted June 4, 2008 Author Report Share Posted June 4, 2008 I checked prices, BKK <>Chicago and they added a 12,000 Baht "fuel surcharge" on top of the ticket price (total price: 60,000 Baht). this is crazy. Here in Europe Budget Airlines coming in trouble now, passengers start to cancel weekend trips. Link to comment Share on other sites More sharing options...
Bangkoktraveler Posted June 4, 2008 Report Share Posted June 4, 2008 "12,000 Baht "fuel surcharge" on top of the ticket price" is almost $400.00 per person. Let's say the plane was a 747-400. Let's say this is a cattle plane and can seat the maximum of 524 people. For simplicity, round the number down to 500 people. The plane holds 57,000 gallons of fuel. Running the numbers, the fuel surcharge brings in over $3.50 per gallon of fuel. Jet fuel cost now about $5.00 per gallon. Are they saying fuel surcharge is based upon $1.50 fuel or are they crying poverty while stealing from our pockets? Link to comment Share on other sites More sharing options...
tree187 Posted June 4, 2008 Report Share Posted June 4, 2008 Here in Europe Budget Airlines coming in trouble now, passengers start to cancel weekend trips. I would put at least 50% of that down to the fact that they ain't got much excess cash so can't afford it when they're there. For example, for any UK citizen heading to Europe this summer your costs will have gone up by around 25%, combination of shit Sterling and inflation. The airfare is most probably the cheapest part of the equation. People who have no grasp of simple economics or FX rates are going to have the shock of their lives I can tell you. Mind you, continental supermarkets selling cheap booze should do a roaring trade as the English WON'T be without their booze when on holiday Link to comment Share on other sites More sharing options...
tree187 Posted June 4, 2008 Report Share Posted June 4, 2008 Are they saying fuel surcharge is based upon $1.50 fuel or are they crying poverty while stealing from our pockets? This is big business, the greediest bunch of fucks on the planet we're talking about so you can bet on the latter....... Link to comment Share on other sites More sharing options...
cavanami Posted June 5, 2008 Report Share Posted June 5, 2008 The flight from BKK to Chicago is a total of 18 hours (max) air time. The plane burns 30 gal/min of fuel (max). So for the total flight they use: 32,400 gal of fuel. Do the math...500 passengers, paying 12,000 baht extra = 6,000,000 baht... The farkin surcharge paid for ALL the fuel for the trip with some pocket change extra even at $5/gal!!! WTF...who's BS'ing who Link to comment Share on other sites More sharing options...
USVirgin Posted June 5, 2008 Report Share Posted June 5, 2008 The fuel figures you mention are based on one-way, whereas the fuel surcharges are round-trip. I'm guessing your passenger figure of 500 is based on 747 travel, one-way. Considering it round-trip on any aircraft might be more fair, so maybe we should cut it in half. PS. I'm not a big believer in surcharges, because I think they're collusive. I'd rather the airlines just raise fares, if they have to. Link to comment Share on other sites More sharing options...
USVirgin Posted June 5, 2008 Report Share Posted June 5, 2008 Effing double post. Link to comment Share on other sites More sharing options...
MooNoi Posted June 5, 2008 Report Share Posted June 5, 2008 Let's say an airfare is $2000 If they pay 10% commission to a travel agent on that, it's $200 commission and the airline keeps $1800 Now.. if they introduce a "fuel surcharge", and the fare compnent is reduced to $1500, but the fuel surcharge is $500, then the commission to the agent is $150, and the airline gets $1850. Doesn't sound like a huge difference, but when you multiply it by thousands of people every day, then it is. Yes, fuel bills have gone up for airlines, undoubtedly, but with hedging on prices etc, they aren't as badly affected as you would think. They're just another way for the airlines to increase profit. And remember, fuel surcharge is seperate to taxes, to these have to be added to an airfare as well. Link to comment Share on other sites More sharing options...
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