the great rip off

jimbo1979

Anybody got information about the great rip off in aviation and general public travel as of late.if anyone has noticed the price of oil has fallen to 50% of what it was in the good times.yet prices have stayed the same in travel.but as soon as oil rises they are all jumping on the bandwagon jacking there prices up

racso1975

In some cases they pre negotiate a price for a set period so that fluctuations in price do not affect profit forecasts

the groutch

what about the great reality that crude oil price is not the same as petrol price, and that petrol is only one of several costs of providing any travel service.

delahuntv

jimbo1979 wrote: »

Anybody got information about the great rip off in aviation and general public travel as of late.if anyone has noticed the price of oil has fallen to 50% of what it was in the good times.yet prices have stayed the same in travel.but as soon as oil rises they are all jumping on the bandwagon jacking there prices up

oil fallen 50% - please show where?


In June oil was $107 per barell and the dollar was $1.38/€1 - that's €77.50

Today, oil is $57 and the dollar is $1.20/€1 - that's €47.50 a 38% drop.

But planes don't run on oil - they run on aviation fuel which is manufactured from oil. - Currently just 30c of any fule rice represents the actual oil price. If oil jumped to $114 tomorrow, and the dollar stayed the same, then the pump price would rise by 30c (+vat), not by €1.30 (average petrol price)

Furthermore, planes don't pull up at a local fuel station and pay a pump price, all airlines will forward purchase their requirements 6-12 months in advance as will most transport providers.

And fianlly, whilst its a cost, the cost of buying a multi million dollar airplane + staff + systems management are as important

animaal

I do think it's a bit rich to be charging a "fuel surcharge".

delahuntv

animaal wrote: »

I do think it's a bit rich to be charging a "fuel surcharge".

most fuel charges follow a mathematical equation and are usually 2 months or 3 months out.

At current levels, fuel surcharges should drop considerably (I know DPD and UPS charges for January have dropped substantially)



Standard Service Fuel Surcharge
The Standard Service Fuel Surcharge applies to all UPS Standard shipments and is based on the last week of the month average fuel consumer prices of diesel fuel set by the European Commission Directorate General (ECDG), inclusive of duties and taxes from two months prior, rounded up or down to the nearest cent. Weekly updates are published by the European Commission Directorate General (ECDG) for Energy and Transport in the Oil Bulletin.
http://ec.europa.eu/energy/observatory/oil/bulletin_en.htm

jimbo1979

delahuntv wrote: »

oil fallen 50% - please show where?


In June oil was $107 per barell and the dollar was $1.38/€1 - that's €77.50

Today, oil is $57 and the dollar is $1.20/€1 - that's €47.50 a 38% drop.

But planes don't run on oil - they run on aviation fuel which is manufactured from oil. - Currently just 30c of any fule rice represents the actual oil price. If oil jumped to $114 tomorrow, and the dollar stayed the same, then the pump price would rise by 30c (+vat), not by €1.30 (average petrol price)

Furthermore, planes don't pull up at a local fuel station and pay a pump price, all airlines will forward purchase their requirements 6-12 months in advance as will most transport providers.

And fianlly, whilst its a cost, the cost of buying a multi million dollar airplane + staff + systems management are as important

Oil in July 2008 was $140 per barrel.today its $50 per barrel.in today's journal.ie aer Lingus states its not passing any savings onto its passengers anytime soon and that airline alone is to make €52 million of this great robbery.consumer agencies in Ireland are about as useful as an ash tray on a motorbike

delahuntv

jimbo1979 wrote: »

Oil in July 2008 was $140 per barrel.today its $50 per barrel.in today's journal.ie aer Lingus states its not passing any savings onto its passengers anytime soon and that airline alone is to make €52 million of this great robbery.consumer agencies in Ireland are about as useful as an ash tray on a motorbike

In 2008 you got $1.58 for a euro. Today you get $1.18.

Please try understanding currency differences.

Also the $140 price was very short lived - the highest 30 day average was $131.

Also, whilst fuel makes up a part of an airline fare, there are many many many other costs. On average fuel is less than 20% of the ticket cost.

As for profit, €52m profit on turnover of about 2 BILLION is not excessive - in fact its quite poor.

ScouseMouse

52 million profit sounds big, but how much is an aeroplane to buy?

delahuntv

ScouseMouse wrote: »

52 million profit sounds big, but how much is an aeroplane to buy?

Here's the pricelist, just in case you want to buy one

http://www.boeing.com/boeing/commercial/prices/

The cheapy 737-700 is a mere $78m (that's average price paid in 2014 - not list price)

A nicer 777 will be over $300million.





On the profit - it represents about 2.4% of turnover - a well run compnay should be able to attain profits of 6-8% of turnover. Apple achieve 22% NET margin after all expense and taxes.

whiterebel

ScouseMouse wrote: »

52 million profit sounds big, but how much is an aeroplane to buy?

And how long do you get out of them? 15, 20 years?

L1011

whiterebel wrote: »

And how long do you get out of them? 15, 20 years?

Barring a few 16 year old craft, 12 is normal for Aer Lingus. Maintenance isn't cheap either. Airlines are extremely koe margin businesses

whiterebel

L1011 wrote: »

Barring a few 16 year old craft, 12 is normal for Aer Lingus. Maintenance isn't cheap either. Airlines are extremely koe margin businesses

And they sell them on when they are finished with them.

L1011

whiterebel wrote: »

And they sell them on when they are finished with them.

Hugely depreciated

whiterebel

L1011 wrote: »

Hugely depreciated

Not surprising after 12 years, they're not Ferrari's:pac:
I'm sure they get a good return on their investments.

Calahonda52

Grocery price inflation soars to new record of 16.3%

https://www.rte.ie/news/business/2023/0207/1354228-kantar-supermarket-figures/

New figures today from Kantar show that grocery price inflation hit 16.3% in the 12 weeks to January 23 - the highest level seen since the consultants started tracking grocery inflation.

We are being gouged big time

One thing I notice in Tesco is that most items that go on club card for a while come back higher than before they went on club card

Hope the KYI is on Clubcard points

Dial Hard

https://www.boards.ie/discussion/comment/120211516#Comment_120211516

What's this got to do with an 8-years-dormant thread about aviation fuel prices???