Cathay Pacific introducing new fuel surcharge.

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This topic contains 7 replies, has 6 voices, and was last updated by  Gin&Tonic 7 Sep 2016
at 06:24
.

Viewing 8 posts - 1 through 8 (of 8 total)

  • openfly
    Participant

    Cathay Pacific to reintroduce fuel surcharge on inbound flights

    Unbelievable. The previous fuel surcharge set when oil was at $140 a barrel and is still included in the fare is now being increased on some inbound flights to HKG.
    With oil at $45 a barrel currently, how can CX possibly impose a further “fuel surcharge”? A desperate move such as this could suggest that CX may not be as financially well-off as we are led to believe.


    stevescoots
    Participant

    I agree, call it what it is, a fare hike. its nothing more than a way to hide the true cost , Ryanair Pacific.


    Flightlevel
    Participant

    Agree too,its a charge with hindsight on their bad hedging on fuel. Profits are down because of competition notably the ME3, all of whom operate A380s. CX are about to take their pax 747s out of service & should replace them on some routes with A380s not wait years for 777x on order. BA is very happy with their daily A380 to Hkg, I’m sure CX would be!


    TimFitzgeraldTC
    Participant

    Not quite as bad as BA/VS tickets from US to Europe where in Premium Economy they are nearly £400 round trip per person.

    That is ridiculous


    AMcWhirter
    Participant

    Flightlevel – Bear in mind that it’s only EK which operates the A380 into HKG. The other two major Gulf carriers utilise smaller aircraft (into HKG). Maybe the HKG authorities impose capacity restrictions ?


    Flightlevel
    Participant

    Good points,I should have said their A380s compete providing lower indirect fares to HKG,though numerous airlines compete directly with A380s & CX can see just looking out their HQ windows!


    stevescoots
    Participant

    with the exception of Dubai i think the most 380’s I have seen in one place at one time is at HKG. curiously I am on EK out of HKG tommorrow and i am on 777 on both legs to BHX, normally 380 flights. Was going to use up some points upgrading to first but as its not the 380 I wont bother


    Gin&Tonic
    Participant

    It’s important to note that it’s the Hong Kong Government who set and FSC outbound from Hong Kong.
    I don’t disagree this a price increase call it what you like, the surcharges have been a rip off now for a long time in comparison to aviation fuel costs but without regulatory authorities stepping in who’s going to stop it. FSC has now been a standard in passenger and cargo pricing for years and no longer has any bearing on reality. Even domestic distribution costs for delivery by road in the UK most haulier quote a price plus FSC set at their own discretion, there’s no guideline. So ultimately as we do on passenger costs it’s who has the most competitive collective price.

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