While SAA’s announcement of a reduction in fuel levies comes as a
welcome relief for its passengers, other airlines are keeping mum about
whether the drop in the oil price will see them following suit.
The oil price has dipped below $90 a barrel, with many analysts
predicting a further slide, some even expecting it to drop all the way
to $50 a barrel. This has been attributed to slowing economic growth in
Europe, the US and China, as well as increased production and the global
stockpiling of oil.
SAA passengers flying between Johannesburg and a number of African
destinations will see fuel levy reductions of $15 (R127) per segment, $7
(R59) on long-haul flights and $5 (R42) on domestic flights.
SAA ceo, Siza Mzimela, says: “We
are delighted to be able to pass on to our passengers the current
savings we are able to make as a result of falling global oil prices.”
She adds that SAA will continue to manage its fuel and other costs to
the maximum benefit of its passengers and the economy.
BidTravel md, Allan Lunz,
commends SAA for the reduction, saying it is a temporary relief for some
travellers. He says the move is an unusual one for airlines and that he
does not expect the same from other carriers. “Airlines are all in
trouble. Without a doubt, if the oil price goes up I expect them to push
the levies up again.”
This sentiment is shared by Jonathan Gerber,
director of TAG Travel. “Airlines globally are battling. I do not see
surcharges being dropped regardless of what happens with the fuel
price.” Jonathan’s view is that most fuel surcharges are just fare
increases in another guise. “Hence my call to put the entire cost as one
on the ticket as some carriers already do, rather than all of these
‘other’ charges, which, quite frankly, just confuse everybody.
“I personally think that air travel is under-priced in many respects,
and has not kept pace with the cost of running an airline, asIata’s
figures of another tough year for the airline industry reflect. I would
think that many airlines will try and hold onto the excess ‘fuel’
surcharge for as long as they can get away with it.”
While some airlines contacted by TNW refused to comment, Axel Simon,
director for Southern Africa of Lufthansa and SWISS,says the airline
continually monitors oil prices and will make any future adjustments to
the fuel surcharge, dependent on further trends in the price of jet fuel
and its resulting procurement as well as on the cost of the
EU EmissionsTradingScheme. “At the moment, Lufthansa has no concrete
plans to adjust its fuel surcharge. In its current forecast for fuel
cost, Lufthansa will have higher fuel cost than 2011,” he adds.
See this weeks issue of TNW for the full story
