Few commodities are viewed more differently across the Atlantic than petrol (gas). In Britain, I suppose uniquely, it's priced in garages (filling stations/on the forecourt/gas stations) in pennies per litre. The way the maths (math) works, we've recently been heading for the incredible figure of 100p - ｣1 - per litre for the first time ever. At the last second it swerved off - reached maybe 98p - and I can now get it at 88.9p.
(Anecdotally, the price went straight through ｣1 and kept going on a filling station in Mayfair, in London's moneyed heartland, - and people actually paid it.)
After the recent drop, it wasn't a surprise when those masters of marketing at Virgin Atlantic Airways took the opportunity to announce that they were cutting their 'fare surcharge' - so taking ｣5 or $6 off one-way fares. Nice publicity (although they didn't push it too hard - after all they still have a ｣25 surcharge in place.)
This is interesting. The equally marketing-obsessed Ryanair (which doesn't compete with Virgin but does with British Airways) makes a huge deal of the fact that it doesn't and "never will" impose fuel surcharges.
What great guys Ryanair must be! Well, not really, Ryanair has to pay for its fuel like everyone else (although they're past-masters of hedging) and one way or another those costs filter through into their ticket prices, same as everyone else. They can call it what they like.
As long as Ryanair gets away with the marketing message it's great propaganda. But, by highlighting their surcharge in the first place, people like Virgin and BA are in a great position subsequently to 'cut' fares.
Which is smarter? Damned if I know - but I know which airline is making most money.
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