By Staff writer
Dubai–based airline reportedly set to introduce a new pricing structure for passengers
The falling price of oil could soon mean cheaper fares for Emirates’ passengers, after the company’s president said the airline is reviewing its fare structure.
Speaking to The National newspaper, Sir Tim Clark said the review was initiated last November, spurred on by the falling price in oil.
“The oil price fall has given us the opportunity to review our whole pricing structure. We’ve been trying to get a better handle on what’s good for us and good for the passengers,” he told The National, speaking at the World Economic Forum annual meeting in Davos.
“We’re asking what we can pass on to the consumer, but at the same time maintain the margins we need for investment in expansion. We want to pass value through to the passenger, but we have to balance that with the need to meet our own key performance indicators, our profit and return levels,” he added.
Clark said the new pricing structure is expected to be implemented by April this year.
“The pricing system needs greater simplicity. It changes day by day and by time of day and that can be simplified,” he said.
International Air Transport Association has said oil prices will lead to 5.1 percent drop on average in airfares this year.For all the latest transport news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
If the cost of fuel represents 40%/50% of the costs of an airline and then that same fuel costs come down by 40%/50%, what is a reasonable % reduction in the cost of a ticket ?
I have just changed to BA after 10 years with Emirates most as a Gold member as their fare structure out of Riyadh to Europe is almost double that of BA in business class.
I believe Emirates is a better service but I cannot justify the difference. The premium on the Riyadh-Dubai leg is killing it due to demand. Cheaper fare are great but in my case we need more seats.
Oh don't make me laugh! The one thing in which EK remains consistently above average is its fare pricing. If customer need was a priority they would have adjusted accordingly already, given the magnitude of the fuel price drop. They are remarkably quick to adjust on the upside.
Their marketing is brilliant but why anyone with the remotest sense of value flies with them is beyond my understanding. Current ECONOMY fares to the UK booked 6 months in advance are STG 1000 (AED 5.8k) with EK!! Sir Tim knows very well what's good for him but I doubt very much he has the remotest concern for "getting a better handle on what's good for the passengers"
Love Emirates - don't love their pricing. Too many offers but the prices don't change on the routes that I fly.
Oil been dropping since mid-2014 yet ticket prices not moved down (no different with the surcharge on DEWA bills by the way!). #abouttime
Wow!!! I am impressed!! So you are still studying to reduce prices and yet you also don't know how much it will get reduced even!!! I stopped flying EK (Gold member) since couple of years due to their extremely high prices compared to similar high end Airlines. Sorry, the price differences are not justifiable to anyone if the ticket is paid by company or personal.
EK is very fast to upside the prices. Hope you are prompt as well to reduce. Travelers have no concern with the offset of the runway repair or the reduction of tourists from Russia.
I am very confident that many have already stopped flying EK due to their unacceptable prices. Good luck EK.
Let them reduce the fare and improve their service. crew wont give you water at one call.
Along with fare structure, More improvements requires on air staff . They should be more helping to old people, and even who don't know Arabian or English language. They are mostly need help to store their luggage, they have to go for toilets more than a normal ones and wish to have seats near any toilets. Then about the infants and children, every time I travel seen children constantly crying due to air pressure and pain in the ears. Always short of staff who serve meal or food, I mean a very strange situation creates. No doubt , the passenger response is also sometime not cooperating.
We travel from Pakistan , and huge business received to Emirates, but always feel the staff behavior . The airline might ignore these problems, and even our concerned authorities might not take interest, but by natural way passenger will shift to other airlines soon.
We love Emirates, that 's why I disclose my opinion towards the improvements and more business to Emirates.
My best wishes
It's not as simple as oil prices falling 40% to 50%. Most airlines hedge their fuel costs so the fall will not be reflected in what they're paying for jetfuel
If my grocery increase 1 dirham on a fruit or veg or meat during Ramadan or other demands, penalty. But tickets are rocket high even double on school vacation time year after year so called offer after offers... be fair and conscious even to report
I Don't know how this news item helps Emirates. Either they should already have reduced fares or don't say until they actually reduced fares. This news will have the effect of people wait and hold off their ticket purchase until Emirates Air actually reduces the fares.