Virgin Blue May Consider to Cut Surcharge
AAP | Oct. 23, 2006
Virgin Blue Holdings chief executive Brett Godfrey says the airline could reduce the fuel surcharge on its airfares if world oil prices fall more.
Speaking after the company's annual general meeting on October 23, Mr Godfrey said Virgin Blue had not increased its fuel surcharge since April 2005, despite rising fuel prices.
But he said if oil and jet fuel prices continued to fall, the airline would consider a cut.
"If we see (plane) fuel continue to decline and it has come off the highs of the nineties ($US a barrel) to be in the seventies, if we see it in the high fifties we will be happy to start cutting, because we think it will stimulate to actually lower that surcharge," he told reporters. "It's AU$19 at the moment but get it (the jet price) into the fifties and we will certainly be taking a fair whack of that off."
Virgin blue's surcharge on domestic flights is AU$19 per sector while the surcharge on flights operated by its international carrier Pacific Blue are AU$35 per sector.
Rival Qantas last week said it lowered the fuel surcharge on international routes effective from this week.