CAB to sanction airlines imposing fuel surcharge

MANILA, Philippines - The Civil Aeronautics Board (CAB) warned yesterday that the government would not hesitate to impose sanctions on domestic and foreign airlines that would continue to impose fuel surcharge on passengers.

CAB executive director Carmelo Arcilla said the regulator has already issued a memorandum that called for the implementation of the lifting of all authority to impose fuel surcharge on international and domestic flights effective Jan. 8.

 “All fuel surcharge imposition approved by CAB are deemed revoked, hence no fuel surcharge shall be collected from tickets sold from January 8 onwards,” Arcilla said. 

Likewise, he added that all CAB-approved cargo fuel surcharge were also revoked.

According to him, airlines that would violate the regulation would face sanctions including fines under RA 776 or the act that reorganized the CAB. 

“Continued imposition of fuel surcharge on tickets sold beginning Jan. 8, shall be subject to sanctions in accordance with RA 776,” Arcilla warned.

In accordance with prevailing international practice, fuel surcharge may be reduced or remove as it is not part of the basic fare depending on the price of jet fuel in the world market.

 Citing data from the Department of Energy (DOE), the CAB said fuel prices have declined by more or less 25.51 percent from January to November last year.

Data from the International Air Transport Association (IATA) showed price of jet fuel in the world market plunged 43.2 percent to $71.7 per barrel as of Jan. 2 compared to a year ago.

As early as Dec. 5, CAB summoned domestic and foreign airlines to explain why they have not reduced or lifted the fuel surcharge imposed on airline passengers.