While oil is still comparably higher than it was two or three years ago, it has pulled back nearly 20% from its recent highs. Airline fuel surcharges haven’t all fallen to earth by the same measure.

Two notable exceptions are Air France-KLM and El Al. KLM reduced their surcharge by 5 euros each way, while El Al cut theirs by $14 each way. Other airlines have been resistant, and others have even raised their surcharges in the past two weeks, despite the drop in fuel prices.

The entire practice is a sham. If the cost of doing business has increased as a result of fuel expenses, then the change should be reflected in the base fare. Call it a fare hike – which is what it is.

But the airlines like to be able to quote “base fares.” They have been able to game the system by quoting prices with “taxes and fees” extra. And now we see that airlines are illegally colluding to use fuel surcharges to keep prices higher: Two British Airways executives resigned over an investigation into the company’s surcharge practices.

To see anyone actually reducing the surcharge is refreshing and welcome, so hats off to Air France-KLM and El Al. But we can do better. Let’s aim for greater price transparency. Let’s get rid of fuel surcharges.

(image: DrunkatNYU)

Safety first!
Flying from the United States to Korea or Japan? If you’re traveling with Asiana or Korean Air Lines, you’ll take a different flight path nowadays, thanks to North Korea’s recent missile tests coming dangerously close to existing air routes. Today Japan’s largest airlines, Japan Air Lines and ANA, announced their own re-routings. No word on American carriers’ flight paths. Yay.

Safety second!
British tourists file more travel insurance claims on trips to Thailand than any other country. Runners up: “…the Czech republic, which came out top for incidents of pick-pocketing, South Africa, top for violent robberies, and Mexico, which is the place to go for over-exposure to the sun, it seems.” By this measure, Ireland was the “safest” destination.

Impressive, but…
China recently completed the train to Tibet and began passenger service. It’s an ambitious and impressive engineering project to be sure (the train cars are pressurized, like a plane, due to the enormous altitudes), but also a highly controversial exercise in internal colonialism. A good overview of the cultural and political ramifications (and fears) can be found here. It’s not all gee-whiz-isn’t-it-neat-what-they-built.

The Denny’s of the Sky?
A new promo: If you fly Aloha Airlines on their birthday (July 26), and you keep the boarding pass stub, you can fly free on your birthday (return within 7 days). Inter-island flights only. But what the heck.

Fare sale to Europe
Air France kicks off their Bastille Day fare sale today (purchase by July 28). Some good late summer/fall fares.

More luxe to Europe
All-biz airline Eos looks to expand from the New York-London route to also serve New York-Paris.

Healthier airborne meals
Northwest Airlines had better keep up. Just a few weeks ago they announced that their Stalinist experiment in inflight dining was over, and that they would reintroduce a choice (gasp!) to the menu in domestic first class. At the same time, other carriers are redesigning their first and business class menus, too, with an eye for lighter gourmet fare. But take away the ice cream, and flyers revolt. (The sarcastic chorus of “boo hoo” is coming from the economy seats.) The article also plugs Peter Greenberg’s book The Traveler’s Diet: Eating Right and Staying Fit on the Road.

Predicting the next protectionist outrage
Chicago Midway under foreign management? It could happen, since the city is soliciting bids for long-terms leases on the airport. We’ll see if a (likely) winning bid from a foreign entity yields as much furor as the Dubai ports affair. If an international firm wins the bidding, it won’t be the first foreign-managed US airport. Indianapolis and Stewart-Newburgh, NY airports are already under British firms’ control. International bids for US assets should be no surprise, given the current account deficit; all those dollars flowing overseas need to be put to work somewhere…

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A number of peoples’ worst fears are coming true: Cellphones will be legal on selected Air France flights. Using technology from OnAir, AirFrance will outfit a single Airbus 318, set for delivery in March 2007, with equipment allowing customers to use their phones in flight.

In essence OnAir’s technology emulates a mobile network inside an aircraft. The specially designed pico-cell system, for instance, allows mobile devices to operate at lower transmission power and thus eliminate interference with other radio systems, according to the company’s website. The system also ensures that phones on board can’t attempt to log on to terrestrial networks.
[...]
To determine demand, the French airlines will ask all passengers using the service to complete a questionnaire. Depending on their response, the company will decide how many additional aircraft will offer the service. Details about pricing were not available.

Plans for the OnAir system are on deck to be retrofitted on existing aircraft for British carrier BMI and Portugal’s TAP.

In the U.S., public opposition to cellphones in flight is fairly strong, but Europe looks like it may go the other way.

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Air France joins its American counterparts in lowering summer business class fares to Europe. (Link may require you to scroll down to “65% off business class” link.) The prices are approximately 80-100% higher than the corresponding economy class fare, which is not as much of a discount as usual, but still a substantial discount to the usual business class fare.

Worth looking into nonetheless, especially if you can be assured of a new flat bed seat.