Friday, June 14, 2024
Lufthansa Cargo and Swiss WorldCargo to change pricing structures

Lufthansa Cargo and Swiss WorldCargo to change pricing structures

Lufthansa Cargo and Swiss WorldCargo are to change their pricing structures for the winter schedule in 2015/16 to include a new ‘airfreight surcharge’.

As of 25 October, the pricing of both airlines will consist of just two components: a net rate and the airfreight surcharge. This will see the surcharges now in place for fuel and security scrapped.

The carriers’ say 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 overall prices of transportation will remain at current levels.

Lufthansa Cargo board member for product and sales, Alexis von Hoensbroech, says: “The new pricing structure is uncomplicated and ensures that we are well positioned for the future, given the changes that the markets have undergone.

“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.”

Swiss International Air Lines chief cargo officer, Oliver Evans, says the new airfreight surcharge reflects the volatility of external cost factors beyond its 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,” Evans adds.

The carriers’ say 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 25 October. For legal reasons, the current surcharge structure will remain in place only in countries where pricing is subject to government regulation, such as in Japan and Hong Kong.

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James Graham

James Graham is an award-winning transport media journalist with a long background in the commercial freight sector, including commercial aviation and the aviation supply chain. He was the initial Air Cargo Week journalist and retuned later for a stint as editor. He continues his association as editor of the monthly supplements. He has reported for the newspaper from global locations as well as the UK.


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