Oil Price and airlines

[Friendstar]

Singapore Airlines & SilkAir are raising their fuel surcharges again - to between US$4 and US$38 for return flights. This will take effect for tickets issued on or after Tuesday. The last increase took place on Oct 24.

 

http://www.straitstimes.com/Free/Story/STIStory_181868.html

 

[Yaloryalor]

[Typhoonz]

Already earning so much money liao still want to pass on more cost to their customers? They think they are the only airline in Singapore ah?

[Odex]

think tryin 2 match civl service bonus!!!!

[Neutrino]

When the oil price shot up years ago the cost of air tickets rose even more.

 

At that time I read that the price of an air ticket was based more than 70% on the cost of oil.

 

OK I thought bit lopsided but typical spin from the airlines.

 

Anyway, just watched an interview with the CEO of Emirates and in the interview he spun and spun the fact that it wasn't the price of an airticket which customers were concerned about but the overall experience blah de blah de blah.

 

Sounded like someone who just didn't want to answer the important question clearly and fairly.

 

I suppose it's the same with the price of petrol at the pumps.

[Picnic06-Biante15]

Which companies who were able to make use of the situation to raise prices of their products due to "external" factors would want to reduce the prices when the "factors" are arrested.

 

Maybe we could ask Income Tax Dept this question. Would they reduce goods taxes as since petrol had come down to average US32/- per barrel ?   

 

First to reduce is our 'petrol' tax (pump price) ....

 

It was reduced once when the price of crude oil drops to below US$70/-  but they step in with additional 20c per litre tax ...

[Kb27]

are airlines still charging fuel surcharge ?

 

but of cuz why reduce price when you can make more money ?

[Vid]

The answer to your question is hedging.

 

Airlines secure their oil contracts at a much higher price to protect against rise in costs.  It is the hedging companies who are benefiting the most.

[Toothiewabbit]

perhaps the Emirates CEO could exprain why a typical business class ticket to Houston imposes a fuel surcharge of approximately SGD 1300.00 

[Forte3737]

perhaps the Emirates CEO could exprain why a typical business class ticket to Houston imposes a fuel surcharge of approximately SGD 1300.00

As long as customers are Willing to pay,I doubt they will explain anything

[Jman888]

When the oil price shot up years ago the cost of air tickets rose even more.

 

At that time I read that the price of an air ticket was based more than 70% on the cost of oil.

 

OK I thought bit lopsided but typical spin from the airlines.

 

Anyway, just watched an interview with the CEO of Emirates and in the interview he spun and spun the fact that it wasn't the price of an airticket which customers were concerned about but the overall experience blah de blah de blah.

 

Sounded like someone who just didn't want to answer the important question clearly and fairly.

 

I suppose it's the same with the price of petrol at the pumps.

 

 

 

you watch the wrong program, you should watch the interview with the CEO of those budget airline and not the top tie airlines.

[Myxilplix]

What's wrong with making more money, yo?