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Why Not? (way For Airlines To Cover Oil Costs)  
User currently offlineJoelfreak From United States of America, joined Nov 2005, 43 posts, RR: 0
Posted (6 years 5 months 3 weeks 4 days 10 hours ago) and read 3831 times:

Why not charge, at least for business travelers, a fixed cost for the flight, and then a percentage of the cost of a barrel of oil on the day of travel. That way they don't need to try to figure out how much oil will be on date of travel, and they can stop adding fees to everything on this side of the sun...I have not heard of many costs skyrocketing OTHER than oil...I know labor goes up, etc...but not more than it really used to. So lets just absorb that cost of oil on the day of flight, and be done with it...thoughts?

12 replies: All unread, jump to last
 
User currently offlineCadet57 From United States of America, joined Jul 2005, 9085 posts, RR: 30
Reply 1, posted (6 years 5 months 3 weeks 4 days 10 hours ago) and read 3818 times:



Quoting Joelfreak (Thread starter):
Why not charge, at least for business travelers,

Why drive off your largest source of revenue?



Doors open, right hand side, next stop is Springfield.
User currently offlineJkudall From United States of America, joined Mar 2004, 615 posts, RR: 1
Reply 2, posted (6 years 5 months 3 weeks 4 days 9 hours ago) and read 3734 times:

How would that work, people not knowing how much their ticket is going to cost until the day of travel??

Either I am misunderstanding you, or I don't think you understand how oil hedging/futures work.

[Edited 2008-06-30 17:09:50]

User currently offlineJoelfreak From United States of America, joined Nov 2005, 43 posts, RR: 0
Reply 3, posted (6 years 5 months 3 weeks 4 days 7 hours ago) and read 3623 times:

Well, people don't have the ability to know how much their ticket is until the day they fly, but, at least the airline knows that they are covered. And you, the passenger knows that you wont get charged 100 fees, and the service will be at a certain level. I am not saying its a GREAT idea, but it would allow you to get the service you feel you deserve, and that you are carrying the hedge...

User currently offlineBond007 From United States of America, joined Mar 2005, 5454 posts, RR: 8
Reply 4, posted (6 years 5 months 3 weeks 4 days 7 hours ago) and read 3601 times:



Quoting Joelfreak (Thread starter):
That way they don't need to try to figure out how much oil will be on date of travel,

They don't now. The price of oil on day of travel has nothing to do with the price that the airline paid for Jet-A for that flight.

Jimbo



I'd rather be on the ground wishing I was in the air, than in the air wishing I was on the ground!
User currently offlineJoelfreak From United States of America, joined Nov 2005, 43 posts, RR: 0
Reply 5, posted (6 years 5 months 3 weeks 4 days 6 hours ago) and read 3520 times:

It may not reflect that, but at least its SOMETHING that is related to the flights gas cost.

User currently offlineCO777ER From United States of America, joined Jun 2005, 691 posts, RR: 0
Reply 6, posted (6 years 5 months 3 weeks 4 days 6 hours ago) and read 3510 times:

Business travelers couldn't give a ____ what the price of their ticket is. As long as it gets them from point A to point B on their preferred airline in the shortest amount of time.

Now if it's a bean counter...  duck   eek 


User currently offlineFlybyguy From United States of America, joined Jun 2004, 1801 posts, RR: 1
Reply 7, posted (6 years 5 months 3 weeks 4 days 6 hours ago) and read 3470 times:



Quoting Cadet57 (Reply 1):
Why drive off your largest source of revenue?

Business travelers will pay regardless of the fees. Business will be done at just about any cost. It's leisure travelers that will stay home with increasing fees. I guess if airlines want to fly around an empty Y, it's really up to them, but then again, I guess Y doesn't matter anymore.



"Are you a pretender... or a thoroughbred?!" - Professor Matt Miller
User currently offlineSirOmega From United States of America, joined Sep 2005, 735 posts, RR: 0
Reply 8, posted (6 years 5 months 3 weeks 4 days 5 hours ago) and read 3420 times:

So if GW decided to bomb Iran and the price of oil goes to $250/bbl, you're on the hook for twice as much as you thought? I dont think so...

Its a pay-as-you-go system. The people buying tickets now are paying for the fuel of today's flights. More or less.


User currently offlineFrmrCAPCADET From United States of America, joined May 2008, 1743 posts, RR: 1
Reply 9, posted (6 years 5 months 3 weeks 4 days 4 hours ago) and read 3368 times:

The airline gets funds from the credit card as you book. If they have any sense they buy fuel for that flight the day you book it. This does not mean in fact that they do so.


Buffet: the airline business...has eaten up capital...like..no other (business)
User currently offlinePlatinumfoota From United States of America, joined Jan 2006, 556 posts, RR: 0
Reply 10, posted (6 years 5 months 3 weeks 4 days 3 hours ago) and read 3308 times:

Well since we are at it, why not charge passengers when they get off the plane according to how much fuel was use on the trip  biggrin   duck 


Never forget United 93
User currently offlineEA CO AS From United States of America, joined Nov 2001, 13752 posts, RR: 61
Reply 11, posted (6 years 5 months 3 weeks 4 days 1 hour ago) and read 3212 times:
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Quoting FrmrCAPCADET (Reply 9):
The airline gets funds from the credit card as you book.

 redflag 

Not all of it - and depending on the carrier, most of it may be held back by the credit card company until travel has occurred.



"In this present crisis, government is not the solution to our problem - government IS the problem." - Ronald Reagan
User currently offlineFrmrCAPCADET From United States of America, joined May 2008, 1743 posts, RR: 1
Reply 12, posted (6 years 5 months 3 weeks 3 days 14 hours ago) and read 2968 times:



Quoting EA CO AS (Reply 11):
Not all of it - and depending on the carrier, most of it may be held back by the credit card company until travel has occurred.

What credit card companies are worrying about is that airlnes using funds for next months (next 6 months) flights to pay for today's operations, or even worse, last months. Funds used to buy fuel futures woulld be largely safe for the credit card folks. And I said 'funds', not all the funds.



Buffet: the airline business...has eaten up capital...like..no other (business)
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