Asia Times Online :: Southeast Asia news and business from Indonesia, Philippines, Thailand, Malaysia and Vietnam

Southeast Asia

May 18, 2005

Philippines ups airline fuel surcharge

MANILA - The Philippines' Civil Aeronautics Board (CAB) on May 9 gave approval to local carriers to collect an additional fuel surcharge for both foreign and domestic flights in light of the continuing increases of jet fuel prices.

Local airlines will now be able to collect an additional fuel surcharge of as much as P250 (US$4.60) for a one-way local flight and up to US$8 for a one-way overseas flight.

CAB executive director Tomas Manalac said the petitions of Philippine Airlines, Cebu Pacific and Air Philippines were granted. He said the approved fuel surcharge will be valid for three months, after which, the airlines would again have to submit their fuel surcharge computation for the CAB to review.

The local carriers cited the increasing price of aviation fuel as the main reason for seeking increases in the fuel surcharge.

In addition to the fuel surcharge, the airlines are also allowed to impose a P1 additional surcharge for every P100 worth of cargo.

The price of aviation fuel at the world market registered an increase to $45.71 per barrel from $28.25 in May 2003.

The International Air Transport Industry predicted that the aviation industry lost some $5 billion last year due to high fuel costs.

CAB said the fuel surcharge will be in effect for as long as the price of aviation fuel remains high, but the additional charges would have to be removed or reduced once oil prices decrease.

Philippine Airlines (PAL) currently collects a fuel surcharge of $14 per passenger traveling to and from the United States, Canada and Australia; $10 per passenger to and from the Middle East; and $8 per passenger to and from all other destinations.

In June 16 last year, PAL and Cebu Pacific filed a joint petition before CAB for a $6 increase in the overseas fare for each one-way trip per passenger.

The increase took effect immediately, imposing an additional charge for international flights to cover the high cost of using aviation fuel.

CAB said nine other foreign airlines also were allowed to impose a passenger fuel surcharge.

Among them were Malaysian Airlines at $6; and Royal Brunei Airlines, at $5 for its Manila-Bander Seri Begawan route, and $2.50 from Bander Seri Begawan and beyond.

Singapore Airlines was also allowed to impose an additional $5 surcharge as well as British Airways, $4; Vietnam Airlines, $5; China Airlines, $7; Asiana Airlines, $7; Qatar Airways, $5; and Cathay Pacific Airways, $5 for its short haul and $14 for longer flights.

(Asia Pulse/PNA)

Head Office: Rm 202, Hau Fook Mansion, No. 8 Hau Fook St., Kowloon, Hong Kong
Thailand Bureau: 11/13 Petchkasem Road, Hua Hin, Prachuab Kirikhan, Thailand 77110