CAA allows local airlines to hike fuel surcharges

The China Post news staff

The Civil Aeronautics Administration (CAA) under the Ministry of Transportation and Communications has agreed for domestic airline companies to raise their fuel surcharge to partially reflect the ever-rising international oil prices, starting on March 8. Domestic airlines operating flights between Taiwan and Hong Kong will be allowed to raise their fuel surcharge to US$21.2 from existing US$18.3 per trip, effective March 8. Airlines operating other short-range flights are permitted to increase their aviation fuel surcharge to US$24 from US$22.5 per trip, starting March 15.

Also effective March 15, domestic airlines flying long-haul routes can boost their oil surcharge to US$64 from US$58.5 per trip.

Based on the CAA decision, local airlines can only hike their fuel surcharge by 11 to 15 percent, although the international oil prices have shot up 25 percent in the latest round of oil price surge.

Nevertheless, the hike on fuel surcharge can more or less help China Airlines, EVA Airways, and other local air carriers cut their operating costs.

As long the fuel surcharge increase does not affect passenger loading rate, the increase can help air liners cushion the impact of the ongoing oil price rises.