Osborne tells airlines to pass on fuel cost savings

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  • Anonymous
    Guest

    BA744fan
    Participant

    So says the DM.

    Will it have any effect? Probably not as the airlines will no doubt cite fuel price hedging.


    SimonS1
    Participant

    Electioneering at its finest.


    HarryMonk
    Participant

    Looks like the stars are aligning for the airlines in 2015 with a couple of nice little earners

    As well as being slow to reduce fuel surcharges (or whatever alternative term they use) , unless they are 100% hedged, the cynic in me says that when they do the ‘base fare’ will rise to compensate.

    The cynical me also thinks they will be slow to pass on, if at all, the reduction in APD particularly for ultra-long haul fares except for those already pre-booked for travel after the change date for which they are legally obligated to do.
    Additionally no doubt the refunds of overpaid APD could be defered until the date of travel plus a few weeks processing time thus earning a bit of interest


    SimonS1
    Participant

    Where there is profit to be made the airlines will always drag their feet.

    There are of course other reasons why the ‘airline surcharge’ will come down slowly if at all which is all to do with the way in which they skim off a nice income from ‘reward’ flights.

    If Osborne had any balls had would look at whether charges like this which go directly to the airline should be rolled into the headline fare. All this guff about watching like a hawk etc is just populist politics.


    LuganoPirate
    Participant

    No different to other businesses such as gas or electricity companies really.


    Tom Otley
    Keymaster

    Hi,

    I’m sorry our forum software doesn’t allow us to merge threads, but can we carry this on here?

    http://www.businesstraveller.com/discussion/topic/George-Osborne-to-act-against-fuel-surcharges.

    Thank you

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