Budget airlines Consumer rights.

Jonlogical

WiseInvestor wrote: »

As explained above, airlines don't pay pump prices. In fact, jet aviation fuel is more expensive than vehicle fuel. Airlines use a process called "Hedging" (ie Hedge Your Bets) which involves signing contracts with fuel suppliers for 'x' litres/kgs/lbs at 'y' price. Most airlines rushed to sign in the early months of 2008 as fuel prices were going through the roof - often 6/12/18 months contracts. So even though you see the forecourt prices dropping, the cost to fuel an aeroplane remains unchanged, so the surcharges remain.

So if Kerosene is purchased months before as you state. Why is a surcharge made? They know the price they will pay a year ahead, ergo they know what to price the tickets at. I find it hard to believe that only I can think that the lack of tranparency should be examined. And is underhand.

alanf1314

No chance.

loftus

dealsearcher wrote: »

And Wiseinventor I have already pointed out the forward buying policy of most airlines. It might help if you read the thread first.

WiseInvester wrote:

As explained above, airlines don't pay pump prices

Might help if you read the posts you make sarcastic comments about.

PolishBigSpender

Jonlogical wrote: »

Probably not that is why I am here kicking this ball about with you professional players.
On the other hand to charge a large amount of money for a temporary situation regarding fuel surcharge is at least ethically wrong.

Right now, ethics is the last thing that airlines are worried about.

Ultimately, if you don't like the way that they choose to operate their business - then don't fly with them. You do have a choice, after all - you don't *need* to fly.

dacouch

WiseInvestor wrote: »

As explained above, airlines don't pay pump prices. In fact, jet aviation fuel is more expensive than vehicle fuel. Airlines use a process called "Hedging" (ie Hedge Your Bets) which involves signing contracts with fuel suppliers for 'x' litres/kgs/lbs at 'y' price. Most airlines rushed to sign in the early months of 2008 as fuel prices were going through the roof - often 6/12/18 months contracts. So even though you see the forecourt prices dropping, the cost to fuel an aeroplane remains unchanged, so the surcharges remain.

Aviation fuel is not more expensive than vehicle fuel as aviation fuel has very little tax.

A metric tonne of aviation fuel is around $650 based on a barrel of crude oil at $80 and a barrel is currently under $50.

A metric tonne of unleaded petrol at 90p a litre would cost around £1220 where as a metric tonne of aviation fuel at $50 a barrel would cost around $406 however when you change this into sterling it would be £295 for a metric tonne of aviation fuel.

So Aviation fuel is around a quarter of the price of vehicle fuel.

Your comments on the hedging of the fuel is spot on though.

dealsearcher

loftus wrote: »

Might help if you read the posts you make sarcastic comments about.

loftus,

I didn't mention pump prices. I did mention forward buying. There is a difference!

Maybe you should follow your own advice!

... and as dacouch says aviation fuel is cheaper than petrol. Maybe Wiseinventor was thinking of AVGAS. Jet-A1 is cheaper than petrol.

loftus

dealsearcher wrote: »

loftus,

I didn't mention pump prices. I did mention forward buying. There is a difference!

Maybe you should follow your own advice!

... and as dacouch says aviation fuel is cheaper than petrol. Maybe Wiseinventor was thinking of AVGAS. Jet-A1 is cheaper than petrol.

I do follow my own advice - I just quoted the opening of the post rather than paste the whole thing. Read it through - WiseInvestor talks about "hedging" or forward buying. I just thought your dig was unnecessary, rude and just plain wrong!

dalesman99

A few points:
Fuel surcharges - on the morning the winter schedule went on sale around June 08 they were adding fuel surcharges for flights in March 09. Which begs a couple of questions, if they know the price of fuel 9 months forward why have they not included it in the flight price they have just set, if they don't know the price how can they be setting a surcharge. It's just a chance to advertise a deceptive low price then bump it up. I chose easyjet instead.

Check-in charge - As jet2 had dropped the surcharges and were struggling for passengers I booked a flight advertised at 99p, it ended up at over £40 but still a bargain. Arrived at the airport to be told by a very rude "manager" I must pay £4 to check-in. I had a quick look at all the paperwork I had printed out, no mention of this charge as they had just introduced it. It came down to "pay the fee or don't get on the flight". Even better was to come, got on-board the steward slipped into the announcement that our manchester-geneva flight was going via Leeds to "reduce costs". Jet2 saved money, I was delayed resulting in missed connections, extra cost, loss of time using ski's and lift pass that I had paid for. But jet2 saved money.

On-board the early morning flight I was told "we don;t have the breakfast muffin on this flight" you would have thought an early morning flight was just the place for a breakfast muffin. Luckily the had the 15% more expensive toastie.

Seat selection - Look out for the web site trying to trick you into selecting a seat and charging for the previlge. There is no need to pre-book a seat.

easyjet seem to be the most honest budget airline