Saturday, May 10, 2008

Disaster in the making
Air Canada hikes airfares ahead of tourism season

Media release

Conception Bay South, NL, May 10, 2008- Air Canada raised fuel surcharges on all fares yesterday and that could prove a back-breaker for the Newfoundland and Labrador tourism sector this year.

“The move by Air Canada follows the major United States airlines that raised their airfares as a result of higher fuel costs. American, United and Delta airlines all raised their airfares by $20.00 US on all flights bringing total fuel surcharges to those companies that add up to near $130.00 US,” Murphy said. “That is far less than what Air Canada will be charging in total for flights that exceed 1600 kilometers. As far as I can tell, Air Canada will be charging close to $180.00 in fuel surcharges alone and the government, no doubt, will also get a piece of the price of the extra costs on the ticket. I think Air Canada overdid the surcharge.”

“The federal government, along with the provinces, is going to have to do something big here to prevent a disaster from falling on our tourism sectors in this country this year and it’s going to have to be done now. Here in Newfoundland and Labrador, we depended heavily on air traffic to bring visitors here and now they face the huge costs to get here as a result of being far away from most major centers. If I come from Toronto, I will be subject to the additional $120.00 in fuel surcharges that Air Canada brought in yesterday. Can the federal government address the tax on airfares?

“We’ve asked government here to address high road taxes. If our visitors cannot afford to fly, then perhaps with a little incentive like dropping some of the gasoline taxes, they could promote more drive-in traffic into the province. God knows the tourism sector could use the help now as Big Oil continues to reap the rewards of the high cost of oil.”

-30-

For more information, contact;

George Murphy
Consumer Group for Fair Gas Prices
gasprices@hotmail.com

I dunno people...I talked about this possibility just before Christmas this year and government still didn't act...I guess they'll be in panic mode now.Going to cost some flying back and forth
Ft. Mac a fortune now...I just hope a lot of you booked early like I recommended.

2 comments:

Anonymous said...

hello! Westjet announced a simmilar fuel surcharge today!! It's business.

Flying used to be for the rich only. Maybe it's returning to that way.

Anonymous said...

Maybe flying is for the rich.

Whimsical cross-continental travel will (rightfully) be one of the first casualties of a more environmentally sustainable lifestyle.

With 1 million new drivers in India last year, and several million already in China, the supply of fuel is not what's going to drive fuel prices - it's the demand.