rchonburi99 - 06/06/2008 02:19 GMT
The recent poll triggered one of my hot buttons: should airlines charge extra to recoup the high cost of fuel.
For me, the answer is quite simply YES. What is not acceptable in my mind is the trend to lump various charges into the "Taxes and Fees" added onto the base fare. Air fares are now worse than telephone bills in adding dozens of "fees" and no one is quite sure what they are.
If a flight used to be $100 and now, due to airport charges, security charges, and especially fuel increases, then the cost of the flight is now $200, not $100 fare and $100 "taxes and fees".
I have found many, many fares of $XXX, with what equates to 130% or even more in taxes and fees. BULL - raise the fare and quit hiding things
Many airlines are in the position they are now due to ridiculous pricing games, competing at any cost, regardless of how much they lose, etc. Testosterone management got them in the mess they are in.
It's time to price realistically, pass on increased costs, but make the FARE reflect the cost, not pop in ove 100% taxes and fees at the end of the transaction.
I agree. If I went to buy a car they would not have a rubber surcharge if the cost of tyres went up or a steel surcharge if the costs of the chassis went up. They would just charge a price. It seems weakness on the part of airlines to hide behind such a crazy fare structure.
Agreed, it is annoying having to go through most of the booking process to find out what the full total cost is going to be, before deciding if you want to travel at that price.
Airlines with frequently flyer programmes make more money by increasing the taxes and charges. When a passenger pays for their flight with Air Miles that now only covers the base fare, as taxes and charges still need to be purchased. This has a double affect, devalues the Air Miles as they don't reduce the miles required. Plus they receive a finical return.
British Airways provides Shareholders with 200 or more shares on a date in November, with a 10% discount off most fares. Yes, you have guessed it, the discount only applies to the base fare not the additional taxes and charges.
Due to a UK advertisement ruling, prices should be advertised inclusive of all taxes and charges. So airlines don't gain much of an advantage in not increasing the base fare in that respect. But they still charge extra, on top of the advertised price, for booking with a credit card.
However, it does not always work in the airlines favour. In some limited circumstances when a passenger cancels their journey, some airlines will refund the taxes and charges. When that does apply the passenger receives a larger refund than if the additional cost was on the base fare. As more passengers travel than cancel overall the airlines still gain financially.
AussieM - 10/06/2008 23:16 GMT
I agree with the comments made.
It appears many airlines are just making extra revenue from these unspecified or hidden charges. Perhaps they would be better to be open & justify their hedged fuel costs, Calulate & show us what levels = what charges...but they DONT reduce fares when the prices fall?!!!
There have been times when it has...
Much like the Fuel companies for petrol...
On the subject of taxes & security charges, I understand we are entitled to these to be refunded. As a Gold card holder with KLM, the few times i had to cancel they always refunded the fees security charges & really make a point "You are entitled for the refund of these amounts" then they are either based & cultured in Amsterdam & Dutch Customer Service.
They are honest & open, & a pretty openly informative green airline. Perhaps being decent & responsible is a great part of Dutch culture...it certainly isnt reflected in the UK!
BA WONT refund the charges by phone on cancellation, nor other UK carries...BMI put in an "Admin Charge" to do so...
So, thats fine,;simple choice for me.
They dont operate in a honest decent way I dont use them , the Airlines that do, have taken & will retain my business.
I vote with my feet, & loyalty, & my business.
In these tough times, they will regret their loss of loyalty in the medium term....
