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Yomiuri: Japan’s travelers up in arms over new fuel surcharges

December 29, 2007
By Ken Worsley


Back in November, it was reported that although Japan Airlines had decided to raise its fuel surcharges on international flights for the winter months, rival All Nippon Airways declared that it would not increase its prices. This was the first time that the two firms have not moved in accord with regard to fuel surcharges on international flights.

Now, we’ve been told by the Yomiuri that JAL’s surcharge on flights to Hawaii has jumped from 5,000 yen per person to about 19,800 yen, and will be boosted to 25,000 yen in January. While it may have seemed as though ANA was missing out on some easy profit taking, it now appears as though they have made the better move from a PR standpoint.

According to the Yomiuri’s story, JAL and travel agents selling its tickets are receiving a “flood” of complaints over the higher fuel surcharges and that they have been poorly explained in the company’s brochures. In addition, complaints have been lodged with the National Consumer Affairs Center of Japan and the Japan Association of Travel Agents. As the paper points out, “Because the surcharges are as much for children as adults, a family of four will pay 100,000 yen in addition to airfare for a round-trip to Hawaii in early 2008.”

We’re not sure that there are so many families of four left in Japan these days, but even for a family of three, that’s quite a price increase.

At any rate, it’s worth noting that travel agents say they are not to blame due to the fact that brochures are often printed up months in advance of ticket sales. The Aviation Industries Division of the Construction and Transport Ministry has announced that surcharges should not exceed the level set for January.

Finally, we should note that the Construction and Transport Ministry says that it intends to examine foreign carriers to see how they deal with the implementation of fuel surcharges.

As we pointed out earlier this week, the number of Japanese traveling abroad in 2007 declined by 1.1 percent, for the first decline in four years. The risk of this number dipping further could be increased by JAL’s own inability to conduct proper corporate communications.

Filed Under Airlines, Business 

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Comments

One Response to “Yomiuri: Japan’s travelers up in arms over new fuel surcharges”

  1. John S on December 29th, 2007 1:31 pm

    Finally, we should note that the Construction and Transport Ministry says that it intends to examine foreign carriers to see how they deal with the implementation of fuel surcharges.

    That’s in the article? This is exactly the kind of thing I don’t get…Are these guys actually so unaware of the concept of competition that they sit around wondering how foreign airlines manage to raise prices (or cut inefficiencies) without causing customers to hate them?

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