New pricing structures at Lufthansa Cargo and Swiss WorldCargo
A new Airfreight Surcharge to be introduced as of winter schedule 2015/16
Lufthansa Cargo and Swiss WorldCargo are adapting their pricing structure with effect from the winter flight schedule 2015/16. As of October 25 the pricing of both airlines will consist of just 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 Dr 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.
The adjusted pricing structure will go into effect in most markets worldwide on October 25. For legal reasons, the current surcharge structure will remain in place only in those countries where pricing is subject to government regulation (e.g., Japan and Hong Kong).