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Domestic Fuel Surcharge Remains High Despite International Oil Price Drop
October 20, 2006 |
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| Category: Industry News
International fuel price have gone down by 25% in the past three months, and while many international airlines such as Air France and Singapore Airlines have already announced reductions on their fuel surcharges, airlines companies in China have still not made comments on their plans.
The price rules made by China's National Development and Reform Commission a few months ago only mentioned the new fuel surcharge would begin in September, but did not mention when they would end.
In order to save Chinese airlines from mounting financial losses, the Civil Aviation Administration of China approved them to increase the fuel surcharge for domestic lines from September 1. The new fuel surcharge standard levies RMB60 per passenger for distances below 800 kilometers and RMB100 per passenger distance at or above 800 kilometers. Before this change, the fuel surcharges were RMB30 and RMB60, respectively.
Since April, when international oil prices started to spike, China had raised fuel prices three times. However local media report that the NDRC and Civil Aviation Administration of China are soon planning to connect the Chinese fuel surcharge with international oil prices so fuel surcharges for domestic lines can change without being influenced by NDRC directives.
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