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   Vol. 14  No. 63
Thursday August 6, 2015

Less Complex Faster Rates

Less Complex Faster Rates

Dr. Alexis von HoensbroechOliver Evans   “The new pricing structure is uncomplicated and ensures that we are well-positioned for the future, given the changes the markets have undergone,” said Dr. Alexis von Hoensbroech, Lufthansa Cargo board member, Product and Sales.
   In a joint announcement this week, Lufthansa Cargo and Swiss WorldCargo said starting October 25, 2015 pricing for 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.
“We have listened to our customers,” Dr. Alexis said.
   “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.”
   “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,” said outgoing Chief Cargo Officer Oliver Evans.
   “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.”
   Ashwin Bhat has been named as SWISS’s new Head of Cargo, effective October 1. He succeeds Oliver Evans, who is stepping down from the post.


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