On January 18, the Civil Aviation Department Hong Kong approved the adjustments to the passenger fuel surcharges levied by six airlines from the present levels of $113 per passenger (for short haul flights) and $466 (for long haul flights) to $106 and $438 respectively. These represent a decrease of about 6%. The six airlines were Cathay Pacific Airways, Air China, China Eastern Airlines, China Southern Airlines, Hong Kong Dragon Airlines and Xiamen Airlines.

At the same time, the Civil Aviation Department Hong Kong also approved another four airlines, namely, Jetstar Asia, Pakistan International Airlines, Royal Nepal Airlines and Saudi Arabian Airlines, to maintain their existing levels of fuel surcharges at $40 (for short haul flights) and $117 to $240 (for long haul flights). The newly approved surcharges will take effect from February 1.

Fuel surcharge is a type of aviation tariff which requires the approval of the relevant aeronautical authorities before it could be levied. When approving applications for levying fuel surcharges, the Civil Aviation Department Hong Kong would take into account changes in the prices of aviation fuel, the justifications provided by the airline operators and other relevant factors such as the charges levied by the other airlines.

"When approving fuel surcharges, the Civil Aviation Department Hong Kong would ensure that the revenue so generated would not exceed the additional costs borne by the airline operators due to increased oil prices during the corresponding period," a spokesman said.

Given the fluctuation in oil prices, the Civil Aviation Department Hong Kong has only approved fuel surcharges to be levied on a short term basis. The newly approved charges will only be valid till March 31.

At present, the average fuel surcharges between major international destinations are at the levels of about $260 per passenger (short haul) and $560 (long haul), whereas the charges by the major Mainland operators to international destinations (other than Hong Kong) are about $310 per passenger (short haul) and $470 (long haul).

"When compared with the general amounts of surcharge at the international level as well as those levied by Mainland operators, the surcharges on local routes are already set at a reasonable level," said the spokesman. (Hong Kong dollar is the currency used in this report unless otherwise stated)