mham001
Posts: 5650
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RE: Emirates Considers Reducing Ticket Prices

Fri Feb 20, 2015 7:33 pm

Quoting RogerMurdock (Reply 23):
I looked at the fare breakdown and it was $10 base fare each way plus $650 fuel surcharge plus other taxes and fees.

I wonder what kind of a tax rate Emirates has to pay on profits?
 
jetwet1
Posts: 2985
Joined: Thu Jun 14, 2007 4:42 am

RE: Emirates Considers Reducing Ticket Prices

Fri Feb 20, 2015 8:06 pm

Quoting par13del (Reply 42):
Be gratefull you are in the USA, the APD from the UK to the Caribbean is higher even though for many flights we are closer.

The APD is a whole different issue, I now over fly the UK is I can help it.

Which route is shorter from the UK than the US to the Caribbean ?

Quoting YTZ (Reply 48):
One thing often missed about ME3 service is the diversity of their crew. This particularly matters when flying pax to several destinations onwards. I was on an EK aircraft where the cabin crew spoke 11 languages. That meant most pax could be served in their first language.

Good point.
 
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yellowtail
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RE: Emirates Considers Reducing Ticket Prices

Fri Feb 20, 2015 8:23 pm

You all forgot one element too ...commissions. Agent commissions are USUALLY only paid on base fares so airlines have been using fuel surcharges as a way to keep commissions low. Removing the surcharge and rolling some of into the base drives up the commission costs.
When in doubt, hold on to your altitude. No-one has ever collided with the sky.
 
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RyanairGuru
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RE: Emirates Considers Reducing Ticket Prices

Fri Feb 20, 2015 10:53 pm

Generally correct on commissions, but some airlines do pay commissions on fuel. IIRC QF and MH do, can't remember others.

Probably the biggest windfall for the carriers is FF redemption where hundreds of dollars are added to the price of the "free" ticket.
Worked Hard, Flew Right
 
swallow
Posts: 182
Joined: Wed Jul 11, 2007 12:23 am

RE: Emirates Considers Reducing Ticket Prices

Sat Feb 21, 2015 4:14 am

Funny how the ME3 raise hackles on here.

US carriers receive an estimated $1 billion in jet fuel tax breaks from 37 States annually.

'A new report released on Tuesday found that the US airline industry receives nearly $1 billion in tax breaks annually from states for jet fuel.

In some states, airlines only pay tax on fuel used during takeoff, while other states exempt airlines’ fuel from environmental taxes or for multileg flights that originate domestically and continue abroad.

“If a plane goes from Los Angeles to New York, the airline pays sales tax on the Los Angeles to New York fuel. But if that plane then continues to London, the airline doesn’t pay sales tax on the Los Angeles to New York fuel”.

Commercial airlines received $384 million in fuel tax breaks from California in 2013, the highest of any state. The estimated number of gallons for which the airlines receive a tax break from the state was 2.26 billion.

The second-highest state was Washington, which offered airlines $123 million in tax breaks on fuel, followed by New York with $115.3 million, and Illinois and Ohio, both of which provided $85 million in tax breaks.

“This is a lot of money states are giving away in tax breaks … happening at the same time that airlines are saying they are actually overtaxed and are pushing for new tax breaks,” said Adam Yalowitz, a union research analyst focused on airline tax policy and author of the study'.


Detailed report here

Just saying

[Edited 2015-02-20 20:32:42]
The grass is greener where you water it
 
aviationaware
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RE: Emirates Considers Reducing Ticket Prices

Sat Feb 21, 2015 9:31 am

Topic missed, congratulations.
 
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PW100
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RE: Emirates Considers Reducing Ticket Prices

Sat Feb 21, 2015 9:36 am

Quoting MaverickM11 (Reply 46):
Airlines aren't mounting defenses because of their high fares stealing customers

I fail to see the relevance.. But, I get your point. You have really no answer. Again.

Thanks for clearing that up for us.
Immigration officer: "What's the purpose of your visit to the USA?" Spotter: "Shooting airliners with my Canon!"
 
Planesmart
Posts: 2891
Joined: Sun Dec 05, 2004 3:18 am

RE: Emirates Considers Reducing Ticket Prices

Sat Feb 21, 2015 9:39 am

Quoting azjubilee (Reply 18):
Hawaiian has already eliminated fuel surcharges in the Korea and Japan to Hawaii markets. Make no mistake... any airline that reduces or eliminates these charges will bring them back WHEN fuel rises again.

And so they should. But the enthusiasm to impose fuel surcharges, and increase them where warranted, should be matched by an equal enthusiasm to reduce or remove them. They should currently be zero. Hedging has nothing do with the surcharges, because hedging or not, all airlines were quick off the mark to pass on surcharges.
 
MaverickM11
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Joined: Thu Apr 06, 2000 1:59 pm

RE: Emirates Considers Reducing Ticket Prices

Sat Feb 21, 2015 2:16 pm

Quoting PW100 (Reply 56):

I fail to see the relevance.. But, I get your point. You have really no answer. Again.

Pretty simple concept--people are paying a discount for the better product.
E pur si muove -Galileo
 
dtw2hyd
Posts: 7505
Joined: Wed Jan 09, 2013 12:11 pm

RE: Emirates Considers Reducing Ticket Prices

Sat Feb 21, 2015 7:00 pm

Quoting YTZ (Reply 48):
One thing often missed about ME3 service is the diversity of their crew.

Diversity is a necessary requirement, because word gets around about working conditions and no one from that neighborhood will be ready to join. You can hire crews to sanitize social media, but you cannot sanitize word of mouth publicity.
 
Viscount724
Posts: 19316
Joined: Thu Oct 12, 2006 7:32 pm

RE: Emirates Considers Reducing Ticket Prices

Sat Feb 21, 2015 11:00 pm

Quoting tomcbaker (Reply 45):
Actually, when DL and EK cost the same (never happened so far, but let's just say hypothetically), from the US to DXB, I'd still fly EK over DL. Not because I'm 'unpatriotic' but because EK offers a better coach service/product, period.

DL's 9-abreast Y class configuration on their 777s vs 10-abreast on EK would be enough to make me choose DL.

Quoting yellowtail (Reply 52):
You all forgot one element too ...commissions. Agent commissions are USUALLY only paid on base fares so airlines have been using fuel surcharges as a way to keep commissions low. Removing the surcharge and rolling some of into the base drives up the commission costs.

In many, probably most, of the world s major markets, airlines stopped paying travel agent commissions quite a few years ago.
 
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RJ321
Topic Author
Posts: 305
Joined: Fri Dec 05, 2014 5:57 am

RE: Emirates Considers Reducing Ticket Prices

Sat Feb 21, 2015 11:06 pm

Quoting 32andBelow (Reply 47):

Do not forget that there is a pricing mechanism/strategy that is based on costs; Cost Based Pricing.
 
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DocLightning
Posts: 21634
Joined: Wed Nov 16, 2005 8:51 am

RE: Emirates Considers Reducing Ticket Prices

Sat Feb 21, 2015 11:14 pm

Quoting ProphetDE (Reply 5):
Most of the major US and EU airlines already stated that they would rather use the low fuel prices to increase profit margin than lowering ticket prices - which seems reasonable - but opens another easy possibility for the ME3 to dump prices and increase pressure on EU/US airlines.

I thought about that, too. But for the US carriers, EK and friends can only affect traffic to the Middle East and to the Indian Subcontinent. They have very little influence over traffic from the US to Europe, Asia, S. America, much of Africa, or Austalia/NZ. For the EU carriers, they compete on flights to Australia and Asia (although most major asian cities have nonstops to most major EU cities).

Certainly on the routes that the ME3 fly, there will be a downward pressure on prices, but I doubt it will hurt the US/EU carriers that much. It will probably be painful for AI, though...
-Doc Lightning-

"The sky calls to us. If we do not destroy ourselves, we will one day venture to the stars."
-Carl Sagan
 
Viscount724
Posts: 19316
Joined: Thu Oct 12, 2006 7:32 pm

RE: Emirates Considers Reducing Ticket Prices

Sun Feb 22, 2015 1:27 am

Quoting DocLightning (Reply 62):
They have very little influence over traffic from the US to Europe, Asia, S. America, much of Africa, or Australia/NZ.

The Gulf carriers often have very competitive fares to many points in Africa (and elsewhere), regardless of the indirect routing. Just checked a few random dates in April JFK-JNB and EY is cheaper than AF/LH/BA, and EK only a few dollars higher.

Same thing to points where routing via the Gulf is extremely roundabout, for example for the same April dates JFK-LOS, EY and EK are also cheaper than almost all European carriers although they're flying you about 60% (around 4,000 miles) further each way than via Europe.

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