A_flyer
6th August 2006, 17:05
Cebu Pacific, PAL seek adjustments in air fare
The Manila Times - August 07, 2006
By Darwin G. Amojelar, Reporter
AS oil prices climbed to a new record last month, Philippine and foreign airlines are seeking another increase in ticket fares to offset operational losses.
In a letter to the Civil Aeronautics Board (CAB), Inez F. Jose, Cebu Pacific manager for external affairs, asked the regulator for an increase in the fuel surcharge to defray the higher cost of fuel.
A fuel surcharge is a temporary relief granted to airlines to help them recover losses they incur from higher jet fuel prices.
“Unlike other airlines that are able to increase the regional surcharges to the level that these can partially subsidize the domestic sector, Cebu Pacific’s regional operations only comprise a small part of its operations,” Jose said.
She said the airline’s low-fare offerings for domestic travel leaves it with an insufficient buffer to accommodate higher fuel prices.
The Gokongwei family-led airline wants to increase the fuel surcharge imposed on Luzon-to-Mindanao flights by P140 to P990; on Luzon-to-Visayas flights by P620 to P720; on Visayas-to-Minadao flights to P610; within Luzon flights to P550; within Visayas flights to P460; and within Min*danao flights to P610.
Apart from Cebu Pacific, flag-carrier Philippine Airlines also sought an increase in the fuel surcharge for international flights, particularly the Manila-to-Guam haul, from $11 to $22.
Joining the two Philippine-based carriers was China Airlines Ltd., which is seeking to raise the fuel surcharge from $34 to $54 a passenger for international flights, particularly the Taipei-US-Canada haul.
Fuel, which accounts for a third of an airline’s operating cost per passenger, is the second-highest expense next to labor.
Jet fuel started going up in 2002 but local and foreign airlines began asking for increases in fuel surcharge in 2004.
The Manila Times - August 07, 2006
By Darwin G. Amojelar, Reporter
AS oil prices climbed to a new record last month, Philippine and foreign airlines are seeking another increase in ticket fares to offset operational losses.
In a letter to the Civil Aeronautics Board (CAB), Inez F. Jose, Cebu Pacific manager for external affairs, asked the regulator for an increase in the fuel surcharge to defray the higher cost of fuel.
A fuel surcharge is a temporary relief granted to airlines to help them recover losses they incur from higher jet fuel prices.
“Unlike other airlines that are able to increase the regional surcharges to the level that these can partially subsidize the domestic sector, Cebu Pacific’s regional operations only comprise a small part of its operations,” Jose said.
She said the airline’s low-fare offerings for domestic travel leaves it with an insufficient buffer to accommodate higher fuel prices.
The Gokongwei family-led airline wants to increase the fuel surcharge imposed on Luzon-to-Mindanao flights by P140 to P990; on Luzon-to-Visayas flights by P620 to P720; on Visayas-to-Minadao flights to P610; within Luzon flights to P550; within Visayas flights to P460; and within Min*danao flights to P610.
Apart from Cebu Pacific, flag-carrier Philippine Airlines also sought an increase in the fuel surcharge for international flights, particularly the Manila-to-Guam haul, from $11 to $22.
Joining the two Philippine-based carriers was China Airlines Ltd., which is seeking to raise the fuel surcharge from $34 to $54 a passenger for international flights, particularly the Taipei-US-Canada haul.
Fuel, which accounts for a third of an airline’s operating cost per passenger, is the second-highest expense next to labor.
Jet fuel started going up in 2002 but local and foreign airlines began asking for increases in fuel surcharge in 2004.