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Ba Raises Fuel Surcharge

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http://www.ft.com/cms/s/0/5caa65c2-5fb2-11e0-a718-00144feab49a.html#ixzz1Ih15KThg

BA raises fuel surcharge

By Pilita Clark, Aerospace Correspondent

Published: April 5 2011 19:42 | Last updated: April 5 2011 19:42

British Airways has lifted the fuel surcharge on its business class flights to as much as £290 for a return ticket, its highest level in seven years, as it increases the fee for the third time in less than four months.

.....

The company raised the surcharge four times in early 2008 to cope with that year’s record oil prices, before lowering it twice in October and December of that year.

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fuel surcharge my ar$e... BA has raised their ticket prices, they just feel too ashamed to say it directly.

Fortunately there are other airlines that compete with BA.

What is much worse is the ridiculously high UK government passenger tax which is orders of magnitude higher in tyhe UK than anywhere else in Europe.

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This is fascinating to watch.

The UK economy is melting and companies are responding by raising prices. The BOE low rates are causing enormous pain here in the UK but the BOE appears to have done a Faustian pact with the Fed not to raise IRs until the Fed does.

At some point in the coming months, if this continues, many of us are going to be unable to afford food or fuel.

Thank goodness house prices are not falling.

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This is fascinating to watch.

The UK economy is melting and companies are responding by raising prices. T

Its a typical response, years ago in an economics class we were given an exercise about such a company. The typical responses were to raise prices to cover short falls. Which was the wrong answer as raising prices crushed demand and made the company finances worse. Prices were cut slightly to increase demand and minimise losses.

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Its a typical response, years ago in an economics class we were given an exercise about such a company. The typical responses were to raise prices to cover short falls. Which was the wrong answer as raising prices crushed demand and made the company finances worse. Prices were cut slightly to increase demand and minimise losses.

It is actually quite a good response. Raise prices, cut production. The smaller amount that you do sell is more profitable.

Take BA as an example. Do you have 100 planes operating and fly on razor thin margins, constantly worrying about load factor - or do you fly 80 planes, take a 20% reduction in operating costs, close to 100% utilisation and double your margin? You could fly 20% fewer flights and make more than twice as much money.

If you think there is little chance of the economy expanding in the short term, cutting production is sensible. You only run excess capacity if you are convinced that an upturn in demand is just round the corner.

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I havent received my £20 per flight per head for the last time them and Virgin were found to have overcharged..

They are appealing this now.....

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This is fascinating to watch.

The UK economy is melting and companies are responding by raising prices. The BOE low rates are causing enormous pain here in the UK but the BOE appears to have done a Faustian pact with the Fed not to raise IRs until the Fed does.

At some point in the coming months, if this continues, many of us are going to be unable to afford food or fuel.

Thank goodness house prices are not falling.

yeah, but flights are not in the inflation CPI....???

of course, cost squeeze is on against private sector margins.

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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