A small international airline, Air New Zealand, has announced the end of fuel surcharges in its pricing. After months of complaints from consumer advocates and recent rumblings in Congress about ticket price transparency, Air New Zealand’s move may be the beginning of the end for fuel surcharges.
According to a small piece tucked away in ATWworld,
Air New Zealand will incorporate fuel surcharges into all fares from March 30 as a lure for travel agents to book clients on the carrier. The practice of excluding surcharges, which have been substantial, has caused significant rifts between travel agents and airlines around the globe. ANZ GM-Australia John Harrison said he expects the decision to have a “positive effect” on sales. “Apart from the benefits of simplicity and transparency, Air New Zealand commissions will now be calculated using the fuel inclusive level, providing improved earnings ability when selling Air New Zealand,” he said. “This change will make Air New Zealand fares fully inclusive.”
Can this be the change the in ticket-pricing model that will lead to changes in the rest of the airline industry? What are your thoughts?
