Govt Unlikely to Allow Fuel Surcharge Soon
By Zhu Yu, China Securities Journal | Jun. 05, 2006
With the declaration of National Development and Reform Commission that the aviation oil price of leaving the factory increased 500 yuan each ton on 24th May, the ever-rising fuel cost problem of airlines has became the hot spot again. Moreover, the voice that the airlines wanted to increase aviation fuel surcharge became higher and higher.
Recently, it has been rumoured that China Southern, China Eastern, Air China had reached the agreement wishing the overall price of aviation oil surcharge to be increased by 2/3 as hoping the aviation oil surcharge for flights distanced below 800 km to be increased from 30 yuan currently to 50 yuan, the aviation oil surcharge for flights distanced above 800 km to be increased from 60 yuan currently to 100 yuan.
The reporter wanted to confirm this piece of news towards General Administration of Civil Aviation of China (CAAC), the person in charge of public relations in CAAC shared they have no knowledge about it, even if the price was adjusted, the notice would be sent away by the National Development and Reform Commission. But the person concerned with National Development and Reform Commission denied that they had received the application from airlines concerned with the current aviation oil surcharge.
"Price Alliance" Will Probably Appear
Since the aviation oil surcharge has not been granted, all airlines have planned to become reconciled through a well known secret in the industry - 'price alliance' - in order to lessen the pressure of high oil price. (Translation: CARNOC - Tao Mengping)
Original URL: http://news.carnoc.com/list/69/69841.html