LAXintl
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UA Adds $10 LAX "Rent" Surcharge To Tickets

Thu Apr 12, 2007 2:03 am

Now I wonder what happens if airlines win their suit against the airport? People also get their money back, or UA simply pockets the extra cash?

Will be interesting to see if any other carriers follow.


United Airlines to add $10 surcharge on LA flights
Wednesday April 11,


NEW YORK (Reuters) - United Airlines said on Wednesday that passengers on its flights originating at Los Angeles International Airport will each pay a $10 surcharge to offset a rent increase, effective immediately.

In December, Los Angeles World Airports (LAWA) raised the rent for all LAX airlines to finance airport upgrades. United, the largest airline at LAX, said it would pay an additional $10 million annually and that it believed the increase was in clear violation of its long-term lease agreement with LAWA.

United, a unit of UAL Corp. said it had joined several other airlines in a lawsuit against LAWA. A spokesman for LAWA was not immediately available for comment.


Full story;
http://biz.yahoo.com/rb/070411/united_surcharge.html?.v=3

[Edited 2007-04-11 19:10:43]
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siromega
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RE: UA Adds $10 LAX "Rent" Surcharge To Tickets

Thu Apr 12, 2007 2:26 am

Quoting Laxintl (Thread starter):
Now I wonder what happens if airlines win their suit against the airport? People also get their money back, or UA simply pockets the extra cash?

Lawyers. They'll pocket the cash.
 
searpqx
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RE: UA Adds $10 LAX "Rent" Surcharge To Tickets

Thu Apr 12, 2007 2:28 am

Quoting Laxintl (Thread starter):
said it would pay an additional $10 million annually

Ok, so they'll recoup their cost at the millionth passenger. Considering they carried 4.9MM pax out of LAX last year, what are they going to do with extra $3.9MM?
"The two most common elements in the universe are Hydrogen and stupidity"
 
PolymerPlane
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RE: UA Adds $10 LAX "Rent" Surcharge To Tickets

Thu Apr 12, 2007 2:28 am

I thought it's illegal in the US to put "surcharges" for you cost of doing business. Anyway it might not matter. People will just choose other airlines that is cheaper overall.

Cheers,
PP
One day there will be 100% polymer plane
 
LAXintl
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RE: UA Adds $10 LAX "Rent" Surcharge To Tickets

Thu Apr 12, 2007 2:42 am

The best part about the whole thing is such a move plays right into LAWA's hands particularly if all airlines were to adopt such a similar surcharge.

The airport is hoping to curtail demand at the airport and has found economic disincentives as being the best method. Who knows maybe a $10 difference will mean someone will use other regional airports instead achieving exactly what LAWA wants.

A funny thing about this UA move is however is from my understanding the 28 or so carriers that are contesting the new rental rates are paying the fees into a trust fund till the case is decided. So its not like UA is quite yet out of the money, unless of they internally conceded they have lost and will be subject to the new rates anyhow.
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PanAm747
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RE: UA Adds $10 LAX "Rent" Surcharge To Tickets

Thu Apr 12, 2007 2:50 am

For travellers originating in southern California, the surcharge might not even be noticed - it is very rare indeed when an airfare is more expensive than SAN, SNA, or BFL, than it is from LAX.

As an example, I am considering flying to Halifax this summer. Cheapest price out of SAN - almost $800. Cheapest price (and more flights to choose from) out of LAX - $450.

As much as I LOATHE Los Angeles traffic, I can take Amtrak for $25 roundtrip and then a shuttle to LAX or drive up and leave my car at a friend's house.

So the price goes up to $460...I still come out ahead.
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Go3Team
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RE: UA Adds $10 LAX "Rent" Surcharge To Tickets

Thu Apr 12, 2007 2:52 am

Quoting PolymerPlane (Reply 3):
I thought it's illegal in the US to put "surcharges" for you cost of doing business.

When was the last time you bought a car, rented a car, etc.?
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Stitch
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RE: UA Adds $10 LAX "Rent" Surcharge To Tickets

Thu Apr 12, 2007 2:55 am

Quoting PolymerPlane (Reply 3):
I thought it's illegal in the US to put "surcharges" for you cost of doing business.

That hasn't stopped the airlines - or freight companies - from continuously adding "fuel surcharges" measuring in the scores of dollars to their fares and rates.
 
707lvr
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RE: UA Adds $10 LAX "Rent" Surcharge To Tickets

Thu Apr 12, 2007 3:05 am

If you want to bring as much ill-will as you possibly can down upon your company, while making a self-satifying point, this is definitely the way to go!! Still, I'm sure that thousands and thousands of PAX will come to United's defense and rush home to write stern letters to Los Angeles.
 
PolymerPlane
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RE: UA Adds $10 LAX "Rent" Surcharge To Tickets

Thu Apr 12, 2007 3:25 am

Quoting Stitch (Reply 7):

That hasn't stopped the airlines - or freight companies - from continuously adding "fuel surcharges" measuring in the scores of dollars to their fares and rates.

Sorry I did not make my self clear. What I tried to say is that you can't quote a price excluding the cost of doing business, unlike in Europe, where you can advertise 1 dollar fare, with $200 fuel surcharge, $50 FA surcharge, etc.

Quoting Go3Team (Reply 6):

When was the last time you bought a car, rented a car, etc.?

Last time I bought a car was 3 years ago and rented a car 1 year ago. I did not notice a car advertised at $100 price with $20,000 engine and seats surcharges. I know there is dealer's fee, but that is different since you're buying a car, and the dealer helps connecting you with the manufacturer. This is parallel with travel agency fees we see so often now.

Cheers,
PP
One day there will be 100% polymer plane
 
Go3Team
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RE: UA Adds $10 LAX "Rent" Surcharge To Tickets

Thu Apr 12, 2007 3:50 am

Quoting PolymerPlane (Reply 9):
Last time I bought a car was 3 years ago and rented a car 1 year ago. I did not notice a car advertised at $100 price with $20,000 engine and seats surcharges. I know there is dealer's fee, but that is different since you're buying a car, and the dealer helps connecting you with the manufacturer. This is parallel with travel agency fees we see so often now.

Look closely at your paperwork for your car, or rental. There are usually a few fees besides the dealers processing fee. Some rental agencies will add fees if it is a high demand area. A few weeks ago in Vegas, I had such a fee.

It's usually much easier to add a $10 fee, then it is to change all of the fares for LAX. Either way, surcharges get added all of the time, in the normal course of business. Not being able to charge for certain things, and lose money in the process isn't good business practice.
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ual777
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RE: UA Adds $10 LAX "Rent" Surcharge To Tickets

Thu Apr 12, 2007 3:56 am

Quoting Stitch (Reply 7):

That hasn't stopped the airlines - or freight companies - from continuously adding "fuel surcharges" measuring in the scores of dollars to their fares and rates.

LOL. That is because for every $1 per barrel oil prices go up, it costs the airlines $80-100 million (depending on the airline). Margins for airlines are VERY thin.
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D950
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RE: UA Adds $10 LAX "Rent" Surcharge To Tickets

Thu Apr 12, 2007 5:28 am

Quoting PolymerPlane (Reply 3):
I thought it's illegal in the US to put "surcharges" for you cost of doing business

Hell, Hertz has a surcharge just for the privelage of renting @ ONT.
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Stitch
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RE: UA Adds $10 LAX "Rent" Surcharge To Tickets

Thu Apr 12, 2007 5:32 am

Quoting PolymerPlane (Reply 9):

Sorry I did not make my self clear. What I tried to say is that you can't quote a price excluding the cost of doing business, unlike in Europe, where you can advertise 1 dollar fare, with $200 fuel surcharge, $50 FA surcharge, etc.

Don't know about that. I do know the fares advertised in the US papers do not include all those surcharges, but the "boilerplate legalese" in ultra fine print usually notes "taxes and other fees not included" so when you book the ticket and it comes out a lot higher, you can't cry "bait and switch".  Smile
 
Bicoastal
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RE: UA Adds $10 LAX "Rent" Surcharge To Tickets

Thu Apr 12, 2007 6:55 am

I'd love to have UA charge more at LAX and IAD in order to fund new/improved gate areas. United's gates at both of those airports are pathetic.
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PolymerPlane
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RE: UA Adds $10 LAX "Rent" Surcharge To Tickets

Thu Apr 12, 2007 7:11 am

Quoting Stitch (Reply 13):

Don't know about that. I do know the fares advertised in the US papers do not include all those surcharges, but the "boilerplate legalese" in ultra fine print usually notes "taxes and other fees not included" so when you book the ticket and it comes out a lot higher, you can't cry "bait and switch". Smile

For airfare the fees are usually government fees, not the airlines. If you see the price advertisement, it's actually higher than the quoted air fare in your final invoice. Tax is a different ball game.

Cheers,
PP
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LAXintl
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RE: UA Adds $10 LAX "Rent" Surcharge To Tickets

Thu Apr 12, 2007 8:23 am

Guys here is another funny point to this seeming bogus surcharge. I wonder what the additional $38 million is for?

From today's LAWA new release  Wink


STATEMENT FROM LOS ANGELES WORLD AIRPORTS (LAWA) REGARDING UNITED AIRLINES FARE INCREASE FOR LOS ANGELES PASSENGERS


United Airlines’ $10 increase in ticket prices for Los Angeles passengers wildly exceeds the airline’s full and fair share of the costs to maintain and operate its terminal facilities at LAX. United appears to be exploiting a justified increase in its maintenance and operations costs in order to dramatically increase profits on Los Angeles passengers.

In 2006, United reported more than 4,885,353 enplaned passengers at LAX. Assuming the same level of traffic this year, the airline’s $10 increase per passenger will generate more than $48 million in additional revenue. Yet, United claims the increase in ticket prices is necessary to pay higher maintenance and operations costs totaling $10 million.

Under the terms of their existing leases, United and other carriers are responsible for the full costs of maintaining and operating LAX facilities and LAWA has the right to pass along increases in its costs of operating the terminals, which it does for the benefit of the airlines. LAWA has discussed with the airlines their responsibility to pay fair and reasonable costs to maintain and operate their respective terminals and other facilities at LAX, particularly in the years following the 2001 terrorist attacks. Since then, LAWA has largely shouldered the increased security-related costs itself.

The subsidization of these costs on behalf of the air carriers has become onerous and unfair and LAWA is seeking to recover those costs associated with the terminals. For its part, however, United appears intent on exploiting the matter in order to boost profits, at the expense of its Los Angeles customers.


http://www.lawa.org/lax/newsDisplay.cfm?newsID=914
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Bicoastal
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RE: UA Adds $10 LAX "Rent" Surcharge To Tickets

Thu Apr 12, 2007 8:43 am

Quoting Laxintl (Reply 16):
I wonder what the additional $38 million is for

Hopefully to improve the shoddy terminal and other of its facilities at LAX. IAD needs the same surcharge.
Airliners.net has many forums. It has spell check and search functions. Use them before posting!
 
worldtraveler
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RE: UA Adds $10 LAX "Rent" Surcharge To Tickets

Thu Apr 12, 2007 9:17 am

obviously LAWA is not pleased although they can't stop UA from charging what they want for their services.

US airlines do have to disclose carrier imposed surcharges in any advertising. If they advertise fares to/from LAX, they will have to include this LAX surcharge in the advertised fare. Gov't fees do not have to be included in the advertised fare but have to be disclosed in the fine print.
 
N1120A
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RE: UA Adds $10 LAX "Rent" Surcharge To Tickets

Thu Apr 12, 2007 4:09 pm

How f'ing ridiculous is this anyway? Why isn't UA tacking on $30 at ORD or DEN if this is the case?
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coa747
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RE: UA Adds $10 LAX "Rent" Surcharge To Tickets

Thu Apr 12, 2007 11:52 pm

LAWA is a joke. I'm not defending United here but when you neglect your infastructure for decaded then the cost of fixing or replacing said infastructure is bound to be astronomical! Terminal 6 is a great example it still retains the 1950's welcome to the jet age look. I doubt much has been done with that terminal for decades. Terminal 3 received only a cosmetic makeover recently but LAWA did nothing to improve the facility beyond adding pretty tile to the walls and some new paint. United should take care of its facilities at LAX which are rather worn and I don't support a 10 dollar surcharge by them. LAWA can't be blamed for United's poor management in recent years. There is enough blame to go around between LAWA and United. American's terminal at LAX is a good of example of an airline taking care of its space. US Airways wins the award for worst neglected terminal facilities hands down ever seen their junky terminal at PHL?
 
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yyz717
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RE: UA Adds $10 LAX "Rent" Surcharge To Tickets

Fri Apr 13, 2007 1:21 am

This is a good idea on UA's behalf, in theory. Pasengers need to realize that the cost of air travel includes airport rent to airlines to cover capital projects and operating costs. We all want to fly out of attractive airports but not at the cost of expensive air travel though. The greater the breakdown of ticket cost, the more informed the travelling public will be. Excessive airport rent or capital projects can be reigned in by airlines and/or the travelling public with this info. The latter is more effective as the true grass roots stakeholders.

As to the applicability or reasonableness of THIS specific $10 levy, I have no opinion though.
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N1120A
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RE: UA Adds $10 LAX "Rent" Surcharge To Tickets

Fri Apr 13, 2007 1:45 am

Quoting Coa747 (Reply 20):
LAWA is a joke.

What are you talking about? LAWA is an economically viable entity that keeps costs down while not being a blood sucking burden on the local and regional governments. That is saying something given what other airport authorities do, not to mention the outrageous actions of privatized airport consortiums in Europe.
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PolymerPlane
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RE: UA Adds $10 LAX "Rent" Surcharge To Tickets

Fri Apr 13, 2007 1:57 am

Quoting Yyz717 (Reply 21):


This is a good idea on UA's behalf, in theory. Pasengers need to realize that the cost of air travel includes airport rent to airlines to cover capital projects and operating costs. We all want to fly out of attractive airports but not at the cost of expensive air travel though. The greater the breakdown of ticket cost, the more informed the travelling public will be. Excessive airport rent or capital projects can be reigned in by airlines and/or the travelling public with this info. The latter is more effective as the true grass roots stakeholders.

Why? Cost has never been the factor in determining price, especially in a market as competitive as LAX. The only way to increase price is through reduction of supply.

If it is as simple as what you are saying, all airlines would not have cut their costs, as they can just put "surcharges" in their tickets. The fact is price is set regardless of the costs, rather the airlines adjust their costs to match the price.

Cheers,
PP
One day there will be 100% polymer plane
 
nyc2theworld
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RE: UA Adds $10 LAX "Rent" Surcharge To Tickets

Fri Apr 13, 2007 2:33 am

Quoting Yyz717 (Reply 21):
This is a good idea on UA's behalf, in theory. Pasengers need to realize that the cost of air travel includes airport rent to airlines to cover capital projects and operating costs. We all want to fly out of attractive airports but not at the cost of expensive air travel though. The greater the breakdown of ticket cost, the more informed the travelling public will be. Excessive airport rent or capital projects can be reigned in by airlines and/or the travelling public with this info. The latter is more effective as the true grass roots stakeholders.

As to the applicability or reasonableness of THIS specific $10 levy, I have no opinion though.

So what is the passenger facility charge that I pay for whenever I fly? Whenever the PANYNJ do improvements I don't see airlines imposing a new fee to pay for the construction...when the Airtrains (both EWR and JFK) were built, when COs global gateway project was built, B6s new terminal, etc., etc. CO helped pay through its various funding sources (NOT AN EXTRA FEE(for the Global Gateway)) B6 paid some (for its terminal), PFC were used, PANYNJ bonds and such were used for construction costs. As for operating expenses, that's what my ticket is for. To pay the airline for its operating costs, which include, its rent and upkeep of its facilities at its various stations.
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bond007
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RE: UA Adds $10 LAX "Rent" Surcharge To Tickets

Fri Apr 13, 2007 2:50 am

Quoting PolymerPlane (Reply 23):
The fact is price is set regardless of the costs

Yes, which is why so many airlines lost so much money when their prices were lower than their costs!

Quoting NYC2theworld (Reply 24):
As for operating expenses, that's what my ticket is for. To pay the airline for its operating costs, which include, its rent and upkeep of its facilities at its various stations.

Yes, correct!

Quoting Yyz717 (Reply 21):
The greater the breakdown of ticket cost, the more informed the travelling public will be. Excessive airport rent or capital projects can be reigned in by airlines and/or the travelling public with this info.

Right, but their only reason for doing is, is purely to make a point (and make more money than they need).
They are in fact in danger of shooting themselves in the foot, since it's now been widely advertised that the 'surcharge' more than covers the rent, and therefore appears that the airline is blatantly lying to it's customers.

Personally I don't want to know the breakdown of my ticket price, and in fact it's impossible to do. I can look at the financial statements if I want to know that information. The 'fuel surcharge' was there for the same reason - to make a point.


Jimbo
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Jetblast25
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RE: UA Adds $10 LAX "Rent" Surcharge To Tickets

Fri Apr 13, 2007 2:57 am

These extra charges are done as surcharges rather than built into the fare so fares appear lower when listed on the internet. The internet ranks base fare, before surcharges. If UA built any of these ridiculous surcharges into their base fare, their fare would probably be uncompetitive. Personally, I hate surcharges, they are 1) a cost of doing business and 2) not optional for the consumer, so they should be disclosed up front. But I suspect most ppl make their purchase decisions based on the base fare listed, they're not going to take the time to compare who is including surcharges and for how much. So surcharges will prevail.
 
bond007
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RE: UA Adds $10 LAX "Rent" Surcharge To Tickets

Fri Apr 13, 2007 3:06 am

Quoting Jetblast25 (Reply 26):
These extra charges are done as surcharges rather than built into the fare so fares appear lower when listed on the internet. The internet ranks base fare, before surcharges.

Not true, or legal in the USA.

Quoting WorldTraveler (Reply 18):
US airlines do have to disclose carrier imposed surcharges in any advertising.

Correct....well actually not 'disclose' it clearly must be included.

From DOT:

"The DOT allows per-person, government-imposed taxes and fees to be listed separately from a fare,"
...
"Any airline-imposed surcharges, such as “fuel surcharges” and “insurance surcharges,” also must be included in the advertised fare."


Jimbo
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yyz717
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RE: UA Adds $10 LAX "Rent" Surcharge To Tickets

Fri Apr 13, 2007 3:22 am

Quoting PolymerPlane (Reply 23):
Why? Cost has never been the factor in determining price, especially in a market as competitive as LAX.

On the contrary, cost is the only primary and consistent factor in determining price, muddied by events such as seat sales, competitive pressures, pricing initiatives. These rarely last though.

Quoting NYC2theworld (Reply 24):
So what is the passenger facility charge that I pay for whenever I fly?

Dunno, You tell me. Finding out would help you get a better understanding of your ticket price.

Quoting NYC2theworld (Reply 24):
As for operating expenses, that's what my ticket is for. To pay the airline for its operating costs, which include, its rent and upkeep of its facilities at its various stations.

Correct. And when that operating price rises suddenly due to a rent increase, so should the ticket price (in a truly transparent pricing regimen).

Quoting Bond007 (Reply 25):
Right, but their only reason for doing is, is purely to make a point (and make more money than they need).

Oh I agree. But the underlying logic of the surcharge is very sound, IMHO.
I dumped at the gybe mark in strong winds when I looked up at a Porter Q400 on finals. Can't stop spotting.
 
LAXintl
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RE: UA Adds $10 LAX "Rent" Surcharge To Tickets

Fri Apr 13, 2007 3:27 am

UA adds the $10 in the base fare.

For example.. picked a random date of May 26th at united.com


LAX-SFO One-Way
Traveler Base fare Taxes & fees* Total
Adult 1 USD 50.23 USD 14.17 USD 64.40

SFO-LAX One-Way
Traveler Base fare Taxes & fees* Total
Adult 1 USD 40.93 USD 13.47 USD 54.40


While, AA on May 26th LAX-SFO is

Passenger Type Used in Pricing Fare per Person Additional Taxes and Fees per Person Total Price
1 Adult 44.00 USD 10.40 USD 54.40 USD


Lets see how long this sham over stated surcharge stays in place.  banghead 
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PolymerPlane
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RE: UA Adds $10 LAX "Rent" Surcharge To Tickets

Fri Apr 13, 2007 3:49 am

Quoting Yyz717 (Reply 28):

On the contrary, cost is the only primary and consistent factor in determining price, muddied by events such as seat sales, competitive pressures, pricing initiatives. These rarely last though.

Not true at all... don't tell the cost of providing a last minute ticket between say DFW and LAX for tomorrow 4/12 and coming back 4/13 is $869, on the other hand, the cost of providing the exact same service suddenly dip to $224 a month from now.

If you bother to open your basic economic text book and some other basic entrepreneur books, you'll find that cost is never on the equation of price.

Cheers,
PP
One day there will be 100% polymer plane
 
bond007
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RE: UA Adds $10 LAX "Rent" Surcharge To Tickets

Fri Apr 13, 2007 3:51 am

Quoting Yyz717 (Reply 28):
On the contrary, cost is the only primary and consistent factor in determining price

Well, this is negated by the next part of your sentence.

Quoting Yyz717 (Reply 28):
muddied by events such as seat sales, competitive pressures, pricing initiatives. These rarely last though.

Unfortunately they do last. If prices were determined purely by cost, then airlines would always be making money, since to make a profit you simply make revenue (prices) greater than expenses (costs). An airline would simply calculate the cost per passenger/flight and add a margin ... bingo.

What happens is that "seat sales, competitive pressures, pricing initiatives" do affect prices long-term, and often (as is evident in recent years), prices have not covered the costs.


Jimbo
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FATFlyer
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RE: UA Adds $10 LAX "Rent" Surcharge To Tickets

Fri Apr 13, 2007 4:18 am

It appears US and DL have also added the $10 surcharge at LAX. Other airlines are considering it.

A battle between Los Angeles International Airport and its tenant airlines escalated Wednesday when at least three major carriers slapped $10 surcharges on flights departing from LAX.

The move by United, Delta and US Airways for the first time brings travelers directly into the long-running dispute between LAX and the airlines that operate at the USA's No. 4 airport. The three airlines account for 32% of the seats departing LAX this month,

http://www.usatoday.com/travel/fligh...dds-surcharge-to-lax-flights_N.htm
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RDUDDJI
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RE: UA Adds $10 LAX "Rent" Surcharge To Tickets

Fri Apr 13, 2007 4:20 am

Quoting Laxintl (Reply 29):
Lets see how long this sham over stated surcharge stays in place. banghead

Well, since US and DL matched UA...hopefully it will stick and make LAWA look stupid. Hopefully the airlines will also win their suit against the airport.
Sometimes we don't realize the good times when we're in them
 
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yyz717
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RE: UA Adds $10 LAX "Rent" Surcharge To Tickets

Fri Apr 13, 2007 6:02 am

Quoting PolymerPlane (Reply 30):
Quoting Yyz717 (Reply 28):

On the contrary, cost is the only primary and consistent factor in determining price, muddied by events such as seat sales, competitive pressures, pricing initiatives. These rarely last though.

Not true at all... don't tell the cost of providing a last minute ticket between say DFW and LAX for tomorrow 4/12 and coming back 4/13 is $869, on the other hand, the cost of providing the exact same service suddenly dip to $224 a month from now.

You've just contradicted yourself. The common element here is the base price $645 ($869-$224) which likely covers the cost (more or less) and represents the PRIMARY (I said PRIMARY) input to price. The incremental $224 represents the seat sales and competitive pressures etc. If it was "not true at all", the price would vary from $0 to $869, not $645 to $869.

Quoting PolymerPlane (Reply 30):
If you bother to open your basic economic text book and some other basic entrepreneur books, you'll find that cost is never on the equation of price.

Cost will always be the primary determinant in price.

Quoting Bond007 (Reply 31):
Quoting Yyz717 (Reply 28):
muddied by events such as seat sales, competitive pressures, pricing initiatives. These rarely last though.

Unfortunately they do last.

No, they don't last. Seat sales last a few weeks at most.
I dumped at the gybe mark in strong winds when I looked up at a Porter Q400 on finals. Can't stop spotting.
 
PolymerPlane
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RE: UA Adds $10 LAX "Rent" Surcharge To Tickets

Fri Apr 13, 2007 6:10 am

Quoting Yyz717 (Reply 34):

You've just contradicted yourself. The common element here is the base price $645 ($869-$224) which likely covers the cost (more or less) and represents the PRIMARY (I said PRIMARY) input to price. The incremental $224 represents the seat sales and competitive pressures etc. If it was "not true at all", the price would vary from $0 to $869, not $645 to $869.

Read again my post. You misunderstood me. We can agree that the cost of providing a service from DFW to LAX r/t is roughly the same at any given day. Why is the price of the ticket tomorrow $869, while a month from now it is $224?

If cost is the primary driving force behind price, then why did the airlines cut costs to adjust to market price? Why did airlines make losses at all?

Cheers,
PP
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FATFlyer
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RE: UA Adds $10 LAX "Rent" Surcharge To Tickets

Fri Apr 13, 2007 6:47 am

Quoting FATFlyer (Reply 32):
It appears US and DL have also added the $10 surcharge at LAX. Other airlines are considering it.

The list grows, there is a report that NW will also add a $10 surcharge.

But supposedly CO will NOT impose the charge.
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LAXintl
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RE: UA Adds $10 LAX "Rent" Surcharge To Tickets

Fri Apr 13, 2007 7:11 am

Quoting RDUDDJI (Reply 33):
Well, since US and DL matched UA...hopefully it will stick and make LAWA look stupid. Hopefully the airlines will also win their suit against the airport.

If that is the case, then you the consumer is the one that looses. You end paying for a fee the airlines dont have to pass on to LAWA.

And if the airlines loose their case, you the consumer again loose as the surcharge is not even close to the actual dollar amount the new rental charges actual impact the carriers.
From the desert to the sea, to all of Southern California
 
LAXintl
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RE: UA Adds $10 LAX "Rent" Surcharge To Tickets

Fri Apr 13, 2007 8:20 am

Looks like SWA also says no to the surcharge


LAX: United 'exploiting' dispute to boost profits with $10 fee

US Airways "quickly matched" a $10 surcharge for all passengers departing from Los Angeles International, The Arizona Republic reports. Yesterday, United became the first carrier to add the fee for LAX fliers. USA TODAY reports that Delta also has matched the $10 charge, adding that the fee "for the first time brings travelers directly into the long-running dispute between LAX and the airlines that operate at the USA's No. 4 airport. The three airlines account for 32% of the seats departing LAX this month, according to schedule information from Back Aviation Solutions." Most other airlines say they're considering surcharges of their own, according to various media sources.One exception –- so far -– is Southwest, which tells the Republic that it has no plans to adopt a similar surcharge.


http://blogs.usatoday.com/sky/
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rafflesking
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RE: UA Adds $10 LAX "Rent" Surcharge To Tickets

Fri Apr 13, 2007 10:52 am

Hmmm...why is it that in addition to the surcharges, I'm finding flights pricier for the same dates?

I.e. PHL-LAX and BWI-LAX June 10th-16th is $100 pricier than when I booked my flights the day before this surcharge was announced. Flights to SFO and SAN for these dates remained the same price.
 
sparklehorse12
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RE: UA Adds $10 LAX "Rent" Surcharge To Tickets

Fri Apr 13, 2007 10:56 am

This is QF behaviour.......the notion of charging a surcharge becuase of the increase cost of doing business is utterly inexcusable..........
Airlines Flown : QF,NW,AA, CX, AC, MH, SQ, DJ, NZ, TG, PG,US, FJ, J8, AN, DD, JQ
 
RDUDDJI
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RE: UA Adds $10 LAX "Rent" Surcharge To Tickets

Fri Apr 13, 2007 11:29 am

Quoting Laxintl (Reply 37):
If that is the case, then you the consumer is the one that looses. You end paying for a fee the airlines dont have to pass on to LAWA.

And if the airlines loose their case, you the consumer again loose as the surcharge is not even close to the actual dollar amount the new rental charges actual impact the carriers.

not true, I don't fly to LAX so it won't affect me at all.

I'm fine with an airport raising the rent...but LAX broke the contract with the carriers and now they are liable. If the airlines make some money in the interim, I'm cool with that too. When 1Q reports start coming out next week, we're all going to be disappointed at revenues in the 1Q (however it appears March was a good month for everyone).

$54 or $64 from LAX to SFO...they're both about $100 too low.
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bond007
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RE: UA Adds $10 LAX "Rent" Surcharge To Tickets

Sat Apr 14, 2007 12:41 am

Quoting Yyz717 (Reply 34):
No, they don't last. Seat sales last a few weeks at most.

Sometimes, but that wasn't the only factor you mentioned!

Quoting Yyz717 (Reply 28):
seat sales, competitive pressures, pricing initiatives.

The other 2 factors last indefinitely, otherwise we'd always have the same prices between the same cities, they would always cover the costs, and airlines would never lose money .... they lose money purely because cost is NOT the primary factor. When cost IS the primary factor in pricing - and it is in some industries, then the formula is often a simple cost + n% margin = price .... this isn't the way it works for airline pricing.


Jimbo
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WN230
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RE: UA Adds $10 LAX "Rent" Surcharge To Tickets

Sat Apr 14, 2007 1:14 am

Quoting Laxintl (Thread starter):
In December, Los Angeles World Airports (LAWA) raised the rent for all LAX airlines to finance airport upgrades.

But based on that quote, can we look at the positive side of this as it looks like LAWA (and most likely UA) wants to revamp the airport to better serve their passengers?

WN230
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MEACEDAR
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RE: UA Adds $10 LAX "Rent" Surcharge To Tickets

Sat Apr 14, 2007 1:28 am

My uncle just booked LAX-MCO with UA in the summer and he said the samething occcured.

Wonder what will happen...
 
isitsafenow
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RE: UA Adds $10 LAX "Rent" Surcharge To Tickets

Sat Apr 14, 2007 10:57 am

Quoting D950 (Reply 12):
Hell, Hertz has a surcharge just for the privelage of renting @ ONT.

The rent-a-car guys have some stupid surcharge on just about any airport in the USA. I rented a car at MCI in March.
The weekend rate was$ 20.99 day but the add-on fees and taxes were an extra $13.50 a day .
The three day total over $100.......remember, the rate was $20.99 a day.
I rent a car at an airport over 20 times a year and its no dif anyplace. The add-on taxes and fees are murder.

safe
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LAXintl
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RE: UA Adds $10 LAX "Rent" Surcharge To Tickets

Sat Apr 14, 2007 11:39 pm

UA as of late Friday has dropped the inflated "surcharge".

Suppose it did not help UA's perceived cause that other major airlines at LAX including AA and SWA along with every foreign carrier ignored the surcharge.

 white 
From the desert to the sea, to all of Southern California