As fuel prices continue to rise, the fuel surcharge on airfares is also increasing. What's your view on the issue?

Sunday 08th June, 05:31 AM JST

Latest 15 of 29 Total Comments Show All

Wakarimasen at 09:21 AM JST - 9th June

ANA and JAL are only announcing record profits because they are finally being run properly (i.e. they never used to make real money before). Fact is airlines globally are sufferring - some will go to the wall due to high fuel prices.
Wakarimasen at 09:22 AM JST - 9th June

If you surtax oil companies in the good times what incentive do they have to invest more? Socialism don't work.......
thundercat at 11:32 AM JST - 9th June

No problem with the increases... as long as you are aware of what you are paying for at the time of purchase.

I had an experience recently with No. 1 Travel. Booked a flight home and was quoted a certain price, invoice was sent, etc. The day I was to pay for the ticket I received a phone call from them saying that there had been a fuel surcharge increase and I would have to pay 2000Y more. Not a lot I know but after a few questions I realized that these increases could continue even AFTER I paid for the ticket in full. By phone I was told that the ticket would be issued at the airport on the day of departure and that I would be responsible for any further increases in price. I basically felt like they would hold my ticket ransom and demand whatever they wanted even after I had made my final payment. They even went so far as trying to convince me that this was common practice with travel agents in Japan. Anyway, the first Japanese travel agent I called told me that they had never heard of such an absurd policy and that it was 'basically' illegal for No. 1 Travel to increase the prices after a final payment had been made. Make sure to read the fine print before paying!!
Weasel at 11:44 AM JST - 9th June

I agree with a previous post, in that the total price of the ticket (including all of the nickel and dime fees that gets tacked on after the base price) should be what is advertised. This is like going to a car dealer, and the price of the car is $1000, but that's only for the tires, the rest of the car is priced ala carte.
capone at 11:46 AM JST - 9th June

patrick: never mind that the Federal Trade Commission has never found evidence of price-gouging when Congress has asked the FTC to investigate oil prices. Or that oil companies aren't more profitable than other manufacturing industries, except at times when the price of the product they sell is soaring. Or that taxing businesses' excess profits -- How much is excess? -- will lead to a decline in oil exploration and development. Or that taxing business usually means taxing consumers. Plus higher corporate tax will penalize the companies shareholders. It is, arguably, the darker side of capitalism, but its capitalism nonetheless.
nisegaijin at 02:41 PM JST - 9th June

I agree on transparency points. Airlines should be charging us exact amount calculated as litters of fuel used divided by number of passengers on the plane. Done.

At the same time the best government can do now is to remove all restrictions, regulations, taxes and duties from all energy related industries.
Farmboy at 02:58 PM JST - 9th June

I agree on the transparency points as well. I have noticed, for instance, that if I buy a discount ticket from the airline itself, the fuel surcharge is less than if I had bought from a discount travel agency. While perhaps the airlines can estimate the fuel costs more accurately, it would be a lot better for the consumer if the price were the price, even if the price had to be just a bit higher to cover the possibility of an increase.
Nessie at 03:10 PM JST - 9th June

so when oil companies are not making money, or breaking even, does that extra tax get refunded ?

Capone, this is a specious argument, since oil companies already get multi-million dollar tax breaks in good times and bad. So, there're already getting an undeserved refund.

If you surtax oil companies in the good times what incentive do they have to invest more? Socialism don't work.......

Wakari, it seems to be working for the oil companies, who get corporate welfare regardless of the economic circumstances or their own profitability. Taken your argument to its logical conclusion, there should be no tax on oil companies at all.
LFRAgain at 03:30 PM JST - 9th June

Can anyone explain to me how it is that oil companies are making record profits if they aren't as they claim, price gouging? Profit, as I understand it, relies on selling more of something at a set price. But with gas costs skyrocketing, I would assume consumers are not using more gas, but rather less gasoline, or at worst, the same amount of gas as before. So where do these record profits come from if the amount of product being purchased isn't actually increasing (in the US and Japan, at least)?

If anything, the oil companies should be operating at lower profits or a loss, as the cost of raw materials to produce their product increases. If they are passing those rising costs on to the consumer, then I can understand the rise in prices, obviously. But I can't understand the rise in profits.

At best, the profits in a price-wary economy shouldn't be rising at all. I mean, if airline aren't able to keep abreast and are facing bankrupcies due to the rising cost of resources to bring their product to market, leading to, of course, falling profits, then how is it that oil companies are getting richer?

Seriously, I'm no economics expert and would love for someone to explain how this works. Anyone?

Oh, yeah. Rising fuel-surcharges on airfares? It sucks, but it's just going to get worse since we're running out of oil rapidly. Time to find alternative fuel sources fast.
sf2k at 03:56 PM JST - 9th June

It's called Peak Oil.
Here's a primer on Peak Oil from http://www.energybulletin.net/primer.php . I would also recommend the documentary called "End of Suburbia" which is probably on bittorrent by now, to help you put this into context. I wonder if they ever translated that one into Japanese?

With more than 90% of the energy in Japan imported, this is a serious issue being weirdly ignored by media. The above sources will help any reader here get a grip on the issues. Since supply has been in plateau since 2005 or so, as demand exceeds supply, so prices increase.

Some may be thinking it's just speculation; that with a depreciating US Dollar, the oil is worth more in the ground everyday than selling. Although this is true, the fact of the matter is that under Peak Oil, there is no more slack in the system. The world can no longer increase and exceed current production levels. We've been at 85 mil/barrels per day for over 3 years now. Our allowance is not increasing. What happens when it starts decreasing? The world is not prepared.

Also checkout http://www.theoildrum.com for more detailed analysis and timely cogent discussions. (June 8th topic "Why oil costs over $130 per barrel: the decline of North Sea Oil" here: http://europe.theoildrum.com/node/4112 )

Don't take my word for it. Take the IEA excel spreadsheet information and make nice graphs. The data updates every 3-5 months.

For 150 years, we went up. You can follow the progress of the world with the production of oil. All our technology and society, even our delusion of entitlement due to previous investment is all due to this amazing period in humanity. However, now we are in plateau, and these delusions of continuing in the same business-as-usual manner of continuous endless growth are in question. Some day soon we'll be heading down the curve, and reality will finally hit us as we go back to living like the 1940's or earlier in terms of energy usage.

It will be more local. More interesting, more neighbourly. Not bad, just different than today.

As it happens, I believe that of all nations, Japan has the possibility to ride out the wave of energy recession better than others. More electricity, more solar panels, more gardening, more local living.

Make your time
sf2k at 04:01 PM JST - 9th June

However, come winter time in Japan with all those kerosene heaters, the pinch will be on.
Sarge at 04:08 PM JST - 9th June

"Time to find alternative fuel sources fast"

Give me a few more years - my warp-drive engine design looks promising!

Seriously, I'm afraid awl is going to be our mainstay energy source for the next few decades. There simply aren't any serious alternative energy sources that can compete with awl, even at awl's record high prices.

It's all supply and demand - I'm going to demand less myself this year - I'm foregoing a planned trip to the States. If a bunch of people do what I'm doing, the airlines will have to cancel/reduce flights, in turn buying less jet fuel, in turn REDUCING DEMAND FOR AWL!
sf2k at 04:54 AM JST - 10th June

Seriously, I'm afraid awl is going to be our mainstay energy source for the next few decades. There simply aren't any serious alternative energy sources that can compete with awl, even at awl's record high prices.

This isn't going to work. Unfortunately oil is most certainly not going to be available in the next 5 years let alone the next few decades. Not that there won't be oil mind you, just that the demand for it increasingly overcomes supply. Divide what's left with an increasing population means less to use, no matter what the price. Then do that again as oil drops by another 3% a year, every year. This is called 'demand destruction' or recession, take your pick.

Our economic system is predicated on continuous growth, which is slightly insane. We seems to have failed to understand the ramifications of subtraction as a global society. I was no different. However after I saw "End of Suburbia" and found the above links, and read a lot!, this helped my understanding. For some people this is very depressing, but that passes.

Now that we are expecting continuous albeit slow decline, now is the time to adapt. If we wait until we really are in a crisis, then we have failed ourselves.

We'll be fine, we can adjust after all, but don't expect to be driving in 5 or 7 years. Get out of your condo/apartment, get land if you can, learn to garden and ride/fix a bike, would be simple examples anyone can do. As energy availability continues to drop by 15%, (3% * 5years) then you have to use 15% less energy. It's pretty simple. Better to start now, while you have choices, and not when you have to suddenly make a 15% subtraction.

Lifestyle changes are important ways to reduce your burden as well as a means of personal protection. Asking to look into ways of being self reliant are good exercises. ie: try to find a bike repair course in your city. Do you even have one?
LFRAgain at 02:32 PM JST - 10th June

sf2k,

Thanks for that link. I have some reading to do tonight.
dennis0bauer at 03:47 PM JST - 13th June

the only option will be mailing myself home if the prices keep rising