Swiss, Lufthansa rejig rate structure
Swiss WorldCargo and Lufthansa Cargo have announced a rejigging of their pricing structure which will see overall pricing remaining the same.
August 31, 2015
Swiss WorldCargo and Lufthansa Cargo have announced a rejigging of their pricing structure which will see overall pricing remaining the same. Opting not to take the all-in rate route that a number of airlines have moved to, Swiss and Lufthansa said that as of 25 October 2015 the pricing of both airlines will consist of two components: A net rate and an ‘Airfreight Surcharge’.
As a result, the different surcharges currently in place, i.e. for fuel and security, will be eliminated. As the new airfreight surcharge will be much lower than the total amount of the current surcharges, the net rates will be re-aligned so that overall prices of transportation will remain at current levels.
“The new pricing structure is uncomplicated and ensures that we are well-positioned for the future, given the changes that the markets have undergone,” said Alexis von Hoensbroech, Lufthansa Cargo board member product and sales.
“We have listened to our customers. The net rate will be considerably more important, and we will be able to significantly reduce special processes, such as negative rates, with the lower airfreight surcharge. That cuts down on complexity and makes us faster.”
Oliver Evans, chief cargo officer of SWISS stated: “The new airfreight surcharge reflects the volatility of external cost factors beyond the airlines’ control, such as fuel, currency rates, airport charges and fees. The Airfreight Surcharge will be adjusted whenever one of these external cost factors changes significantly and thus will display necessary price adjustments in a transparent way. This would not have been the case with an all-in rate, which both airlines reviewed in detail. An all-in rate would have been less transparent.” To accommodate customer requests for price stability with long-term contracts, it will be possible in the future to fix the overall price − subject to a risk add-on − across the entire term of certain contracts.