Brussels Airlines adopts ‘consolidated’ surcharge

Brussels-big_0Following its sister airlines, Lufthansa Cargo and Swiss World Cargo, Brussels Airlines Cargo (BAC) has adopted a similar “single consolidated airfreight surcharge” model in an effort to simplify the process of charging cargo rates.

Under the pricing structure, BAC will charge a two-tier freight rate: a fixed net sum, plus an airfreight surcharge (ASC), which wil replace all other supplemental charges. The ASC, the carrier said, “includes all the external costs that are beyond Brussels Airlines’ control, such as fuel, airport taxes, security surcharges, etc. As these external costs can fluctuate, the sum of the Airfreight Surcharge is subject to changes.”

Lufthansa and Swiss had already announced that they would adopt this system by the coming winter season. BAC said it would begin the pricing system on Oct. 25. BAC’s two-tiered system is different from the single “all-in” cargo rate model that was introduced earlier this year by Emirates, Qatar Airways and IAG.

BAC made the change, it said, in response to freight forwarders and shippers that had demanded more simplicity and transparency in the rates systems. “Instead of charging various surcharges on freight prices, as is the case today, there will only be one consolidated airfreight surcharge in the future,” BAC said in a statement.

While the new structure is supposed to be less volatile that the old surcharge system, BAC did warn that the ASC is not a fixed rate. “As these external costs can fluctuate, the sum of the airfreight surcharge is subject to changes,” the carrier said. “The introduction of this new pricing method will not lead to higher or lower rates for the customers. In comparison to the old pricing model the net rates will be adjusted so the effect remains price-neutral.”

Get more air cargo insights at the 2015 Cargo Facts Symposium, Oct. 26-28 in Miami. Click here for details.

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