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Airline companies want fuel surcharges back

By Hou Lei (chinadaily.com.cn)
Updated: 2009-07-02 11:38

Chinese airline companies are urging the industry regulator to resume the levy of fuel surcharges after the country raised jet fuel prices Tuesday.

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Many Chinese carriers including China Southern Airlines have requested the General Administration of Civil Aviation of China (CAAC) to levy jet fuel surcharges since they have undergone big pressure after the rise of fuel prices, Guangzhou Daily reported Wednesday.

Jet fuel price per ton was raised by 1,030 yuan (US$151) to 5,050 yuan (US$740) on June 30, an increase of up to 25.6 percent.

"Ticket prices are already very low now. Since fuel prices were lifted again, we hope the authorities will levy fuel surcharges again," said Si Xianmin, President of China Southern Airlines, to Guangzhou Daily.

China suspended fuel surcharges on June 15 of this year.

It is reported that the proposed surcharges of those airlines will be 20 yuan (US$2.9) for each passenger flying less than 800 kilometers and 40 yuan (US$5.9) for each flying more than 800 kilometers.

However, Li Lei, an analyst from China Securities Research, predicted that the new surcharges will be as much as the ones levied in November 2007, when the international crude oil price was US$80 a barrel.

At that time, surcharges in China were 60 yuan (US$8.8) per passenger for short-haul flights and 100 yuan (US$14.7) for long-haul flights.