Cut fuel surcharges call | LAX terminal move by Air NZ | Air NZ boosts flights north | Indian Dreamliner resumption plans | Tahiti upgrades cabins | Singapore builds Virgin Australia stake
Agent calls for cut in fuel surcharges
Flight Centre chief executive Graham Turner has called for airlines to cut the fuel surcharges on tickets, which can add more than 40% to the cost of some international fares. He’s told the Australia media that jet fuel prices have hit the lowest levels in 12 months and has accused the airlines of being slow to pass on the benefit.
"At the very least, fuel surcharges should be lowered immediately," he says. "A more sensible approach would be to remove these complicated surcharges entirely." He says airlines should treat fuel in the same way as other expenses and add it to the base fare for a simpler pricing structure.
Airlines says the surcharges and any increases are necessary to offset rising fuel costs. When major airlines first introduced surcharges in 2004, they were typically well under $100. The price of fuel has tripled since then but surcharges have soared at a much faster rate. Airlines charge different fuel surcharges, ranging from $A500 to $A760 per round trip between Australia and Europe on airlines such as Singapore and Qantas..
Air NZ signals LAX terminal move mid-2014
Next year, Air New Zealand, riding high with a rising share price and a doubling of profit expected in its current year, says it will relocate from Terminal 2 to the Tom Bradley International Terminal at Los Angeles Airport (LAX) in the middle of next year. The airport is undergoing a $US1.7 billion makeover, which will culminate in an 180,000sq ft food and retail area as well as faster boarding and disembarking systems.
Eligible passengers will also be able to use a brand new Star Alliance Lounge, which Air New Zealand will both design and manage. It will be three times larger than the existing Koru Lounge and will feature a unique open air terrace overlooking the run way. “We are immensely proud of the lounge project and look forward to it opening later this year for Star Alliance members, with Air New Zealand customers able to enjoy it once the terminal move is complete,” deputy chief executive Norm Thompson says.
Air NZ boosts northern winter season flights
Air New Zealand has added an extra flight to Honolulu in the northern winter 2013/14 season, boosting the service to four times a week from December 19 to January 16. Additions to capacity and services to other North American destinations were announced earlier this week. In other changes just announced, the daily service to Shanghai will use Boeing 777-200ERs instead of 767-300ERs on up to three flights from the end of October until the end of March, while the Tokyo service will move to daily from fives times weekly starting in the northern winter season 2013/24. It will drop back to six times a week from April 2014.
Air India plans Dreamliner resumption
Air India could be one of the first to get some of its six Boeing 787s back into the air, starting with domestic routes from the middle of May and long-haul international flights to Paris and Frankfurt soon after. Dreamliner airlines expect to receive an Airworthiness Directive from US civil aviation authorities in the next few days.
Air India says the tools for installing the new batteries have arrived and the new batteries are due. “We hope to work on two aircraft at a time,” the spokesman says. It is likely to take up to a week to finish work on each aircraft and the airline plans to wait until at least two are in a position to fly before restarting services.
Tahiti upgrades A340-300 cabins, drops first class
Air Tahiti Nui is introducing its refurbished Airbus A340-300 aircraft to its operation from late next month. The changes will elimination the first class cabin, while business and economy will get an upgrade. The first flight using the refurbished aircraft to Auckland will be on June 5.
SIA boosts stake in Virgin Australia
Singapore Airlines (SIA) is spending $US125.8 million to nearly double its stake in Virgin Australia Holdings with the purchase of shares from Richard Branson's Virgin Group. The deal will raise the SIA's stake to 19.9%, just below the takeover threshold, and the same as held by Air New Zealand. A further shareholder is Etihad Airways while Virgin Group's holdings in Virgin Australia reduces to 12.5% from 22.4%. Virgin Australia, which has also added to its domestic airlines base with the addition of SkyWest and Tiger, now has a “virtual” international network that will enable it to compete better with the Qantas-Jetstar-Emirates combo.
