Virgin Blue Follows Qantas And Air New Zealand In Hiking Card Surcharge Fees

A third airline in Australia has decided to increase the surcharge it levies on credit card bookings, attracting the ire of consumer groups in the country.

On Dec. 21, Virgin Blue, part of Brisbane-based Virgin Blue Holdings Ltd., announced it was raising the surcharge on domestic bookings initiated with credit cards to AU$4.50 (US$4.5 or 3.4 euros) from AU$3.50 per passenger, effective immediately. It also raised the surcharge on international flights to AU$7 from AU$6. The fees apply to both the destination and return portions of customers’ flights.

The airline defended the surcharge increases, calling them modest and appropriate to the current economic environment, according to a statement issued Dec. 31.

However, consumer groups such as Choice noted that a 30% spike in the surcharge was not modest and that airlines have no reason to be raising its surcharges.

Earlier in December, Air New Zealand Ltd. increased the surcharge it applies to bookings initiated with certain payment cards (see story).  According to the airline, consumers who use a payment card will pay surcharges totaling NZ$2 for each one-way domestic flight, NZ$5 for each short-haul Tasman or Pacific Island flight, and NZ$10 for each long-haul international flight.

That announcement followed Qantas’ decision to increase its surcharge to AU$30 from AU$25 per passenger starting Dec. 1 for bookings of international flights made with credit, debit or charge cards (see story).

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