AirAsia Ends ALL Fuel Surcharges Because of Low Oil Prices

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CEOCambodiaNews
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AirAsia Ends ALL Fuel Surcharges Because of Low Oil Prices

Post by CEOCambodiaNews »

AirAsia is getting rid of fuel surcharges following the decline in global oil prices.

AirAsia, the biggest low-cost carrier in Southeast Asia, is cutting fuel charges on its tickets as global oil prices continue to plummet. The Selangor, Malaysia-based airline company said Sunday that the latest move would also apply to flights operated by its long-haul subsidiary, AirAsia X.

According to AirAsia CEO Tony Fernandes, the decision to scrap the fuel charge from tickets is expected to help reduce travel costs while stimulating demand and boosting tourism in the region, The Associated Press (AP) reported Monday. Oil is now priced at below $50 a barrel after six months of decline. Although AirAsia dominates budget travel in Southeast Asia, of late it has been facing increasing competition from other low-cost airlines in the region, the AP report noted.

Last week, Virgin Australia reduced ticket prices for flights from Australia to the U.S. in response to lower oil prices. The company reportedly cut fuel charges for economy and premium economy fares by about $32 while business class fares were reduced by $40.

Cebu Pacific, the Philippines-based carrier which flies to Asia, Australia and the Middle East, also dumped all fuel charges across the board as global oil prices continued to stay down, ABC News reported.

On Friday, U.S. oil prices fell to their lowest level in six years as investors bet that Saudi Arabia’s new king Salman Bin Abdulaziz, who took over after the death of King Abdullah last week, will not change the country’s policy of continuing to supply crude without cutting back on production, despite falling prices.

“Crude production needs to slow down first to decelerate the speed of stockpiling, which is seen to be even faster than during the 2008 financial crisis,” Hong Sung Ki, an analyst at Samsung Futures Inc. in Seoul told Bloomberg. “With Saudi Arabia, the market hardly reacted last week and will remain unchanged as King Salman is known to be very conservative.”

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wackyjacky
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Re: AirAsia Ends ALL Fuel Surcharges Because of Low Oil Pric

Post by wackyjacky »

Maybe now they can stop charging you to pay them. While they're at it, they should stop making their completely worthless Trip Insurance harder to get rid of than Herpes. ps: All seat selection costs $$ now, but I just booked a RT to DMK for $103 all in.
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Re: AirAsia Ends ALL Fuel Surcharges Because of Low Oil Pric

Post by flying chicken »

wackyjacky wrote:Maybe now they can stop charging you to pay them. While they're at it, they should stop making their completely worthless Trip Insurance harder to get rid of than Herpes. ps: All seat selection costs $$ now, but I just booked a RT to DMK for $103 all in.
Maybe a mathematical nerd they hired figure there's a likely chance another one of their archaic planes might do a detour.
EVERYONE BOW DOWN AND PAY EXTREME HOMAGE TO HIS MAJESTIES flying chicken©
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Re: AirAsia Ends ALL Fuel Surcharges Because of Low Oil Pric

Post by StroppyChops »

wackyjacky wrote:Maybe now they can stop charging you to pay them. While they're at it, they should stop making their completely worthless Trip Insurance harder to get rid of than Herpes. ps: All seat selection costs $$ now, but I just booked a RT to DMK for $103 all in.
Forgot to exclude this a while back, sent AA an email starting that costs such as insurance cannot be an "opt-out" (as opposed to the, well, opposite of that) expense. Got a full refund and an apology. They do hide it well now.

Personally I hate the per person per leg charge for using a credit card - what an absolute scam. There'd have to be a class action in that in the future for gouging.
Bodge: This ain't Kansas, and the neighbours ate Toto!
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Re: AirAsia Ends ALL Fuel Surcharges Because of Low Oil Pric

Post by Sailorman »

Airasia's Fly-Thru option cannot be bought separately and even though they built a new giant terminal in KL you still have to go through customs to get a connecting international flight. On their Tune Hotel connected to their new terminal in KL, you can no longer book 6hrs blocks of time when you have a layover, can't check your bags after having to go though customs because the baggage check-in is only open two hours before the flight (three for business class), thus can't get back into transit to use the transit hotel that does book 6hr blocks of time. Very, very poor planning.

A cheap airlines and in some ways it really shows. I wonder if they are having their aircraft maintenance done in the mega/low price/cut-rate aircraft facilities in China?
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Re: AirAsia Ends ALL Fuel Surcharges Because of Low Oil Pric

Post by wackyjacky »

Oh yeah, I forgot to mention that they brought back the early flights to/from DMK.
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