http://www.rex.com.au/MediaAndPressClippings/ShowNews.aspx?Site=IR&nid=211Rex Removes Fuel Levy
Tuesday, 30 June 2009
Regional Express (Rex) today announced that it will be incorporating the fuel levy into the base fare, effective for all new sales made from 1 July 2009.
Giving the rationale of the move, Rex General Manager, Network Strategy & Sales, Warrick Lodge said, “The fuel levy was introduced five years ago when it was felt necessary to be fully transparent to our customers about the significant impact of soaring fuel prices. Five years on, high fuel prices are here to stay and we believe it is time to retire the concept of fuel levy. Extreme volatility in fuel prices and just as extreme volatility of the exchange rate have now become part and parcel of the risks of an airline.”
“With the fuel levy incorporated into the fare structure, we will not see any change to the fully inclusive ticket price. Rex is proud to state that its current average fully inclusive ticket price is 5% lower than 6 years ago when Rex was founded, in spite of a more than doubling of the fuel price during the period.” said Mr Lodge.
Regional Express (Rex) is Australia’s largest independent regional airline operating a fleet of 40 Saab 340 aircraft on more than 1,300 flights weekly to 24 destinations from Sydney, Melbourne and Adelaide. The Rex Group comprises Regional Express, air freight and charter operator Pel-Air Aviation and Dubbo-based charter operator Air Link, as well as the Australian Airline Pilot Academy.
I wonder whether other airlines will also make a similar move.