Media Releases

Flight Centre MD Calls for Fuel Surcharge Action

Aug 18, 2006

Flight Centre Limited managing director Graham Turner today described airlines’ fuel surcharge policies as outdated and inappropriate.

Mr Turner said rather than applying these additional surcharges, airlines should simply incorporate fuel expenses into upfront ticket prices, as was the case in every other business in the world.

“Historically, surcharges were introduced only as an initial cost recovery method after oil prices started to increase,” Mr Turner said.

“Then, when it was clear prices were not going to decrease significantly, they were to be incorporated into ticket prices.

This made it less confusing and misleading for customers and showed clearly what the fares actually were.

“Already, airlines such as Emirates and Jetstar have done exactly this. Others have not and it is hard to see why.

“While we understand the pressures airlines face, the reality is that rising fuel prices and costs affect everyone and every business.

“In other industries, legitimate expenses like fuel are built into the product price, not treated as extras. It should be no different in air transport.”

Travellers The Winners From Increased Competition

Jul 10, 2006

Australian travellers will be the big winners from the latest wave of airfare discounting sparked by Jetstar International’s arrival, according to Flight Centre Limited.

Flight Centre Limited marketing general manager Colin Bowman said the introductory fares had already proved popular with the company’s customers and would open the door to further savings on package holidays and possibly other airlines.

He said the Jetstar airfares and a range of exclusive Flight Centre holiday packages were promoted today in advertising campaigns, in the company’s shops throughout the country and through special electronic news bulletins to coincide with the launch.

“We have been working closely with Jetstar to ensure our customers can take advantage of these special airfare offers,” Mr Bowman said.

“In addition, we have been able to create some exclusive package holiday bargains for our customers by combining Jetstar’s new international fares with our own accommodation specials.”

Mr Bowman predicted that Jetstar International’s arrival could also lead to increased price competition on international routes, thus delivering greater savings to travellers and growing the overall tourism market.
“As we have seen historically, established carriers are very keen to compete on price and will typically respond with special offers of their own.

“That was certainly the case in the Australian domestic market when Virgin Blue and Jetstar launched.

“The end result was some fantastic deals for the Australian travelling public and a windfall for tourism operators in general because the new carriers effectively grew the market by encouraging more people to fly.”

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