Flight centre calls for fuel surcharge reform
Airlines must reconsider hefty fuel surcharges as global oil and jet fuel prices fall to their lowest levels in 12 months, Flight Centre has urged.
The retail chain's managing director, Graham Turner, argued that complicated fuel surcharge structures should be scrapped altogether with fuel to be incorporated into the base fare as with other operating expenses.
"At the very least, surcharges should be lowered immediately," he said. "I stress the word 'should' because history has shown that airlines have been much more likely to increase surcharges than they have been to decrease them in response to fluctuating oil prices."
The abolition of a fuel surcharge would particularly benefit members of airline frequent flyer programs, Turner continued, as they are often required to pay the fuel surcharge portion of a fare when redeeming points on flights.
"This can represent a significant expense, as in some instances, fuel surcharges are now higher than the airlines' base fares," he said.
Air New Zealand was held up as an example of an airlines which charges no fuel surcharge, while that of Emirates is "small" compared with other carriers which charge "hundreds of dollars" in extra charges.
Turner referred to the fuel surcharge on a Qantas return flight to London which is now $760, 12 times larger than its initial $60 charge, with no decreases seen since March 2009.
Singapore Airlines' charge has also rocketed, he added, rising from US$20 in June 2004 to US$520 – 26 times the initial amount.
Email the Travel Weekly team at traveldesk@travelweekly.com.au
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