Two sides of the coin

Reduction in fuel prices; does it translate to benefit to customers?




The low-cost carrier Ryanair had urged UK consumers last week not to  pay unnecessary charges by avoiding high fare airlines.
Chief marketing officer, Kenny Jacobs, had said: “It’s grossly unfair on consumers that high fare airlines such as BA and Virgin continue to charge fuel surcharges, squeezing customers for every last drop.

Virgin Atlantic responds to this criticism of fuel surcharges on its fares by insisting it has cut the charges twice in the past two
months. The carrier had the knocked £20 off its fuel surcharges on return flights on January 28 after making a £10 cut in December last year.

A Virgin Atlantic spokeperson told to Travel weekly, that they buy their fuel months and years in advance, which means recent falls in
the price of oil will not impact their costs. Despite that Virgin Atlantic moved to reduce their fuel surchages shortly before Christmas
and again in January.

The spokeperson told that: “Fuel is the biggest element of the fare. But it is one of several things we break out. The benefit of breaking out the costs is that you can show what is outside the airline’s control. The surcharge does not fully recover the cost of fuel. There isn’t a strong correlation between the reduction in the cost of fuel
and the reduction in our costs. We’ve done this in spite of that to be ahead of the industry. We are not feeling much benefit from the change  in the oil price, but we are doing what we can.”

Large carriers added fuel surcharges to the fares as the oil prices touched record highs during the mid of the last decade. For long haul flight, fuel can cost upto 50% of the price.Airline association Iata has noted that no airline’s surcharges cover the full costs of fuel – they only recover part of it – and all must be included in the fare.

As oil prices fall, these savings should be passed on to customers. Ryanair guarantees no fuel surcharges.However, Ryanair has made clear in the past that its customers do pay the full price of fuel in the
carrier’s fares.

Er Jigna Shah  [BE, MBA]
Sub Editor
www.UK-Aviation-News.blogspot.com
jigna.aerosoft@gmail.com
aerosoft.jigna@gmail.com

Call 9977513452 for Best Airport Car Taxi Indore

Call 9977513452 for Best Airport Car Taxi  Indore


Indore Best Cab / Car Car Taxi  Rental Rates

Cab / Car Taxi       Rate Per Km Local FD Local HD 

Tata Indica  AC  Rs 9.00      Rs 1300   Rs 900

Tata Indigo  AC  Rs 9.50      Rs 1400   Rs 950

Swift Dzire  AC  Rs 10.00     Rs 1495   Rs 1050

Toyota Etios AC  Rs 11.00     Rs 1595   Rs 1250

Tavera       AC  Rs 11.50     Rs 2000    Rs 1500

Innova       AC Rs 12.50      Rs 2300    Rs 1700



Asiatic Cabs Car Car Taxi  Indore 
Hotel Linear Inn,
  Behind C-21 Mall,  
  Plot No 93 PUH, A.B. Road  
  Indore - 452001 (M.P.) 
  Mobile : 9300080070 / 9300084888
           9977513452 / 9893118503 
www.Asiatic-Cabs.blogspot.com