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Mr. Ishiyama of JATA Says Airlines' Understanding and Travel
Agencies' Efforts Essential for Implementation of New IT Fares
Mid-June 2008
Jun Ishiyama, leader of FSC team who works for the fuel surcharge
issue at Japan Association of Travel Agents (JATA), made a comment on
the introduction of new IT fares requested in the JATA's official
letter submitted to airlines last month, saying, "The majority of
airlines showed understanding to some degree, but they appear to be
cautious about taking risks."
He continues, "What is important in solving this problem is to
take different approaches to two different aspects of the issue: one
is high price of the surcharge, and the other is unclear pricing
mechanism from consumer's viewpoint. Everybody understands more or
less the severe impact the soaring oil prices give on the carriers,
but the airlines and travel agents are both required to cooperate for
presentation of a clear-cut price structure to consumers." So he
urges travel agencies to make more efforts in making airlines comply
with their request, and prompts airlines to step forward for the
settlement of the issue.
With regard to the surcharge on infants, some carriers have
decided to waive it but others have not. He is of the opinion that
the market mechanism will soon determine which should be the
mainstream, and speculates that they will stop charging it
ultimately.
Many airlines maintain, however, that it is difficult to
implement new IT fares under the circumstances where crude oil prices
surge as much as $10 a day per barrel.
Otto Benz, general manager for Japan at Lufthansa German
Airlines, and James Woodrow, general manager Japan at Cathay Pacific
Airways, expressed their view respectively that it is not realistic
to fix the surcharge amount over a six-month period, while they
emphasized the strategic importance of the Japanese market.
Mr. Benz said, "I understand European tours are lucrative
products. While working with the travel agencies, we will remain
flexible in following the changes of the market situation." Mr.
Woodrow said, "It is our policy to hold the surcharge amount lower
than others. As we have two most exciting destinations of Hong Kong
and Macau in our flight network just to be enjoyed on one trip, we
will spare no effort to assist travel agencies in marketing
attractive products."
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