Tue, Nov 11, 2008
But Curiously, Airfares Increase As A Result...
In explaining to consumers why all the new ala carte fees were
required, airlines pointed to market resistance to the higher fares
which would be necessary to cover their increased costs for fuel.
Now that fuel costs have fallen again, a curious thing is happening
to fuel surcharges.
Airlines in the US last week eliminated or significantly reduced
fuel surcharges on many domestic routes... but increased their base
fares by a comparable amount. An analysis by FareCompare.com for
USA Today shows many travelers are paying the same as before the
change.
American Airlines was among the first to eliminate fuel
surcharges on most domestic flights. As an example, a round-trip
flight on American from Dallas/Fort Worth to Washington, DC, booked
14 days in advance, had a base fare of $680 dollars, plus a $170
fuel surcharge, for a total of $850.
The surcharge has now been removed, but the base far has now
jumped to... you guessed it... $850 with no added surcharge.
Rick Seaney, CEO of FareCompare.com, says the change will
provide "a bit more transparency" in prices, and adds what may be
obvious -- that the fuel surcharges were not so much about fuel,
but "had everything to do with competition and the need to raise
ticket prices."
US Airways spokeswoman Valerie Wunder appears to concur. She
advises consumers that what really matters is the overall cost of a
flight, not whether part of it is called a "surcharge."
"We still need to be able to charge enough for our product to be
profitable, and we aren't there yet."
More News
Also: B-29 Superfortress Reunion, FAA Wants Controllers, Spirit Airlines Pulls Back, Gogo Galileo Van's Aircraft posted a short video recapping the goings-on around their reorganiz>[...]
Light Gun A handheld directional light signaling device which emits a brilliant narrow beam of white, green, or red light as selected by the tower controller. The color and type of>[...]
"The journey to this achievement started nearly a decade ago when a freshly commissioned Gentry, driven by a fascination with new technologies and a desire to contribute significan>[...]
"Our driven and innovative team of military and civilian Airmen delivers combat power daily, ensuring our nation is ready today and tomorrow." Source: General Duke Richardson, AFMC>[...]
Aircraft Conflict Predicted conflict, within EDST of two aircraft, or between aircraft and airspace. A Red alert is used for conflicts when the predicted minimum separation is 5 na>[...]