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How Much More Do They Want to Make?

Posted on the 14th of May 2008 by Christopher Goddard, Managing Director

And they say that the airline transportation industry is tough business!

Well I would like to know who “they” are because everywhere I look, airlines are making enormous profits. Singapore Airlines today announced a pre-tax profit of 1.4 Billion dollars for their financial year. Qantas recorded a record pre-tax profit for the half year of 905 Million putting them on target for a bumper year again.

Who then is actually assisting them with their over flowing coffers?

Yep – you guessed it – US.

Now I am sure that no-one begrudges a company making money, I mean after all, that would be one of the reasons they are in business in the first place BUT, surely these airlines need to be accountable to the general public for the amounts of money that they are ripping out of our pockets.

The general perception is that the banks are the biggest thieves in the consumer world but seriously, can we actually accept that increase upon increase in transportation costs must automatically be passed on to the consumer? The answer to that is an emphatic NO based on the amounts of money these airlines are making.

There have been no less than 4 “fuel surcharges” imposed over the last twelve months all in the aid of reducing the impact of world oil prices that airlines have to bear.

Well – excuse me!

Wouldn’t that fall under the department of risk management? And apart from that, why do we have to pay for your inability to forecast your own company’s expenditure? Maybe you should spend a bit more money in that department, hire some people that may actually know what they are doing and then we won’t get “knocked for a six” every time the airlines get it wrong.

I am willing to share the load a little bit but hey Mr Airline Manager, you need me to be sitting on your airplane. You keep slugging me with charge after charge and I am going to think twice about sitting on your particular brand of seat – particularly when I know you are making over One Billion Dollars per year.

And they wonder why low fare carriers are doing so well?

The “they” I refer to are the out of touch, only sit in First Class bunch of airline board members who wouldn’t even know what a fuel surcharge is – primarily because they never pay for a ticket!

The cost of progress they say!

It’s abundantly clear that progress is expensive now days.