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LUFTHANSA AND SWISS TO SIMPLIFY AIR FREIGHT PRICING
August 6, 2015

Lufthansa Cargo and Swiss WorldCargo will be adjusting their pricing structure from October 25, 2015, so that the pricing will consist of only a net rate and an air freight surcharge.

 

“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 Alexis von Hoensbroech, board member for product and sales at Lufthansa Cargo. “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 air freight surcharge. That cuts down on complexity and makes us faster.”

 

Self Photos / Files - LH77FThe various surcharges for fuel and security that are currently imposed on customers will be eliminated, according to a statement. Although the new air freight surcharge will be lower than the total amount charged as part of the current surcharges, the overall price will remain unchanged since the net rate will be adjusted.

 

“The new air freight surcharge reflects the volatility of external cost factors beyond the airlines’ control, such as fuel, currency rates, airport charges and fees,” said Oliver Evans, chief cargo officer at Swiss. “The air freight surcharge will be adjusted whenever one of these external cost factors changes significantly and this 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.”

 

While the new structure will apply to most of the two airlines’ markets around the world on October 25, 2015 for the winter season, places such as Hong Kong and Japan, where pricing is subject to government regulation, will continue with the current pricing structure, according to the statement.

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