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Heavy passengers should pay more, suggests former Qantas finance chief
Jan 12th, 2012 by elisa

We’re all told that there is an obesity crisis and that we should lose weight for the good of our health. Now, according to some controversial comments made by a former Qantas group chief economist, our weight could cost us more as heavier people should pay more to fly on planes.

Tony Webber, now managing director of Webber Quantitative Consulting and Associate Professor at the University of Sydney Business School, said that although there are many factors which contribute towards fuel burnt by planes, the most important is the weight of the aircraft, so the heavier people on the plane are the more fuel will be burnt, thus raising the airlines costs significantly.

He made the comments in Business Day in Fairfax newspapers, adding that airlines will have to raise airfares to recover the additional costs, which should not be lumbered ”on those who are shedding a few kilos or keeping their weight stable”.

Between 1926 and 2008, the average weight of an Aussie female adult increased from 59 kilograms to 71 kilos and the average weight of an Aussie male adult increased from 72 to 85 kilos, according to Webber.

On a route like Sydney to London via Singapore, he said the extra passenger kilos meant around 3.72 extra barrels of jetfuel per flight is burnt, “which at current prices cost about $472″.

“This tally may not seem like a lot of money but when you add it up over all flights for a year the extra cost can all but wipe out an airline’s profits, such is the thinness of margins these days particularly on international routes.”

His comments may be contraversial, but he did concede that although he believes it to be a good idea to charge larger passengers more, that implementing it by needing to weigh each passenger at check-in, may not be quite so easy.

“As the obesity crisis worsens, however, and the price of jet fuel continues to spiral upward, such user-pay charge may be something the airlines can’t ignore for too much longer,” he said.

 

What do you think to these suggestions? If this were to be implemented, would it be a form of discrimination? Would being weighed at check-in be an unjust embarrassment?

 

2011 Round up
Jan 3rd, 2012 by elisa

Happy New Year to all our readers! Before we move on to this year’s news, here’s a round up of some of the biggest stories we covered on this blog in 2011, it certainly was an eventful year!

January started with the troubled BMI threatening to withdraw its Heathrow – Glasgow route after passenger charges at Heathrow were raised (this was confirmed a month later). Ryanair returned to Manchester with four new routes. And the political troubles in Egypt disrupted flights.

Spiraling conflict in Egypt caused complete cancellation of routes to popular holiday destinations in February. Meanwhile, Which? launched a super complaint on airline card fee charges,the cost of Qantas’ engine troubles were revealed, and airlines flying from the UK finally started to show clearer air fares.

March brought faster flight times under a deal signed by traffic controllers. But by far the biggest news of the month was the huge tsunami which hit Japan and led to re-routing of flights to avoid possible radiation risk, and advice to leave Tokyo.

A Skyscanner survey found Spain back in favour for British holidaymakers in April.

In May Belfast Airport started to charge for going for a cigarette break, and the ongoing battle between Unite and British Airways was finally settled!

More natural disasters happened in June with violent aftershocks in Christchurch, New Zealand and volcanic eruptions in Chile.

The News of the World phone-hacking scandal broke in July with airlines withdrawing their advertisements as a result.

In August research revealed the use of smartphones were ruining people’s holidays.

The Rugby World Cup was held in New Zealand in September, where Wales’ hopes were dashed.

The first biofuel passenger flight took place in October, however green campaigners claimed it wasn’t as environmentally friendly as everyone thought.

Europe announced a ban on body scanners at airports in November, but the UK decided to go against the decision.

Finally, December saw 150mph winds hit parts of Scotland, which is where we are now at the start of 2012 as tremendous winds continue to batter the UK once more.

 

So, what travel news is in store for 2012? Keep up to date here!

 

10% rise in APD tax
Nov 30th, 2011 by elisa

Chancellor George Osborne has announced the double inflationary rise of 10% to air passenger duty tax next April. He also confirmed that the tax will also be extended to business jets.

There will be a review of APD on 6th December, which could lead to changes in tax bands but will not affect the overall tax rise in April.

Many think that this will be a huge blow to the aviation industry. Mike Carrivick, chief executive of BAR (Board of Airline Representatives) UK said “Air travellers are being milked yet again and used as a soft target to prop up Treasury coffers. This announcement is completely at odds with the Chancellor’s wish to invest in the transport infrastructure. No increase is justified, this action demonstrates the continued discrimination against air travellers.

“In the interests of the economy, we urge him to listen to A Fair Tax on Flying campaign, of which BAR UK is a member, and immediately reverse his plans and not impose this double inflationary increase in the next Budget.”

Multicom MD John Howell, whose e-petition for a freeze on the tax attracted 550 signatures,also expressed his dissatisfaction with the announcement: “I am disappointed our voice appears to have been ignored by the Chancellor and the opportunity to keep APD levels at their current rate for another twelve months has been lost.”

 

No more pre-ticked extras
Oct 12th, 2011 by elisa

Every time I book a flight I find that there has been a box pre-ticked opting me into buying insurance and other extras, at a cost of course. I often find myself having to view each page during the booking process with extreme care in order to un-tick just such boxes to ensure I won’t unwittingly be paying for something I don’t want. Many other travellers must feel the same as a new legislation has been introduced to stop airlines from pre-ticking boxes for extras.

EU ministers meeting in Luxembourg have passed a set of rules aimed at strengthening consumer rights, which the EU parliament backed in June. Online traders will have to disclose the total cost of a product – including fees – and customers will have to actively opt-in to extras, making it a clearer process for all.

Customers will also have a 14 day ‘cooling off’ period and will be exempt from costs if they were not properly informed before the purchase.

Travel firms will not be allowed to make a profit from the charge levied on customers for using a credit card, and will only be permitted to charge customers basic call rates. They will however have two years to implement the rules; so, a slow but welcome transition. What do you think? Please let us know your comments below.

 

FSCS warns of lack of protection of pre-paid cards
Sep 29th, 2011 by elisa

The Financial Services Compensation Scheme (FSCS) is warning consumers using pre-paid cards that they are not protected by the financial compensation scheme if the card provider goes bust.

Ryanair announced last week that it was launching its own MasterCard, which will be the only way for customers to avoid paying an administration fee when they book flights, however this card is also not protected.

There is a trend for holiday-makers to use pre-paid cards as an alternative to credit cards and travellers cheques overseas. They can load them with the amount of local currency they want, making it easier for them to budget for their holiday.

FSCS chief executive Mark Neale told The Times: “Those people who already have a card, or are considering getting one, should be aware that they are not covered by the FSCS.

“This means that if the provider goes bust then cardholders will lose all of the money on their card and will not be eligible for protection.”

Do you budget for your holiday spends?
Aug 9th, 2011 by elisa

Euros picture by Flickr User jeffedoe

When you go on holiday, do you properly plan a budget for while you are away? People tend to think about the initial cost of booking flights and accommodation, but according to a Thomson Holidays survey, over half don’t budget their spending money while abroad. Despite the economic climate, 57% said they spend whatever they like, and over a third also said they didn’t save for their holiday spending money.

Over 65% said meals and days out were the main activities they spent their cash on while away, followed by wine and beer. The most expensive souvenir British tourists buy is jewellery, with some of the most popular items being diamond rings and watches. Ornaments, furniture and handbags were also among the most popular.

The research also found that 41% of holidaymakers return with around £50 worth of unused currency. I wonder whether they exchange the money back or leave it for another time? What do you do?

Card charges through agents
Aug 8th, 2011 by elisa

British Airways‘ decision to levy a charge for credit card bookings through agents has set the ball rolling for other airlines to follow suit. Lufthansa and Swiss now plan to introduce a £4.50 fee on all card payments (credit and debit) made through travel agents for economy seats.

BA only make charges on credit cards whereas these will also charge for debit cards as they say their system cannot distinguish between the two for UK cards.

A spokesman for Lufthansa said: “The costs we receive from credit card bookings are considerable, so we have to pass on a certain amount to those booking.”

 

Clarity of air fares…finally!
Mar 1st, 2011 by elisa

A sigh of relief from millions of passengers as most airlines flying from the UK, according to the Civil Aviation Authority, are now displaying final fares clearly. This allows consumers to compare prices more easily.

The organisation has been working with airlines to ensure their websites list prices that include taxes and fees and says British Airways, Virgin, Bmi and other traditional airlines now comply with this procedure. Easyjet apparently complied early as have Monarch, Bmibaby and Flybe which have all taken steps to make their pricing more transparent.

The CAA said Ryanair and Jet2.com had also formally agreed to display full prices up front on their sites by 28th April and 1st June respectively.

The CAA has also published Top Tips for Tickets to also help consumers to get the best air fare, some of which include:

1. Because there are many excellent prices on offer, always shop around for the best deal and check you are comparing like with like before you book.

2. Check whether the prices on the screen are the final prices before committing yourself.

3. When booking your ticket, make sure you are only paying for things you want – travel insurance, reserving a seat, or hold baggage are common optional extras.

4. Before you confirm your booking, double-check all the details, especially travellers’ names and flight dates, as many airlines charge to change them later.

CAA Group Director of Regulatory Policy Iain Osborne said: “The difference between the price holidaymakers might see when they first search for a flight and the lowest price actually available can be £100 or more for a family of four.

“Consumers should be presented with clear information about the price of their flight throughout the booking process, so they can make fair comparisons between different airlines. Most airlines have changed their websites and adverts to include all unavoidable charges, and Ryanair and Jet2.com are committed to doing so by summer. In the meantime holidaymakers should follow our Top Tips for Tickets and be aware that headline prices may not include unavoidable costs in some cases.”

The next target for the CAA to improve are the charges for changing passenger details, the clarity of optional extras pricing and credit card fees.

Cost of Qantas A380 engine troubles
Feb 18th, 2011 by elisa

Last year an explosion of one of the Rolls-Royce engines on a Qantas A380 flight meant that the airline had to ground its fleet for some considerable time while it undertook tests on the safety of the aircraft and engines.

Qantas say the problems cost AU$55 million (£34.2m) in the first half and warned there would be another AU $25 million (£15.5m) charge in the second half results. Qantas is still in talks with Rolls-Royce over compensation, however, it says it has not ruled out taking legal action however.

Despite the disruption, Qantas reported that its first half net profits had risen four-fold to AU$241 million (£150m). Underlying profit before tax rose 56% to AU$417 million, as sales grew 10% to AU$7.59 billion over the second half of last year.

Which? Launch super complaint on card fee charges
Feb 14th, 2011 by elisa

Consumer rights charity, Which? is to submit a super complaint to the Office of Fair Trading (OFT) over credit and debit card charges. The biggest culprits are discount airlines which often charge huge amounts right at the point of sale for using a debit or credit card, some charge per person or per leg of the flight despite only having to process one transaction.

For example, a family of four booking a return flight with Ryanair would be charged £40 to pay by card when the cost to the airline is only around 20 pence to process a debit card and no more than 2% of the transaction value for a credit card. The same family would be charged £36 by Flybe. Flying with EasyJet would cost £5.50 for paying for return flights by debit card or £5.50 plus 2.5% of the transaction if paying by credit card.

Which? chief executive, Peter Vicary-Smith, says: ‘There’s simply no justification for excessive card charges – paying by card should cost the consumer the same amount that it costs the retailer. Companies shouldn’t be using card processing costs as an excuse for boosting their profits.

‘Low-cost airlines are some of the worst offenders when it comes to excessive card surcharges but this murky practice is becoming ever more widespread, from cinemas to hotels and even some local authorities.’

Which? wants its super complaint to result in:

  • Companies to tell consumers upfront if they have surcharges and how much they are – this needs to be in plain language in their advertising and promotions
  • Fair charges – the costs to the consumer should be the same as the cost to the company – this should not be a hidden way of making money
  • For debit cards, as the cost to the retailer is so small, we think it’s more reasonable for the retailer to absorb the cost and not pass it on to their customers

Which? will be submitting its super-complaint in March and is today launching a petition, which it will hand to the OFT at the same time.

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