AirAsia Phl to hike fare to Cebu, Kalibo

MANILA, Philippines - Low cost carrier AirAsia Inc. Philippines is seeking the green light from the Civil Aeronautics Board (CAB) to raise fares in two major domestic destinations amid the higher price of aviation fuel in the world market.

AirAsia has filed a petition for authority to impose a 33 percent upward adjustment of fuel surcharge to P400 from P300 for its Manila to Cebu and Manila to Kalibo routes.

The CAB allows airlines to impose fuel surcharge on international and domestic passengers as a temporary relief to help them recover losses arising from the increase in jet fuel prices in the world market.

Latest results of the Jet Fuel Price Monitor of the International Air Transportation Association (IATA) showed that the price of jet fuel average increased six percent to $123.7 per barrel from a year-ago exceeding the full year target of $123.4 per barrel set by IATA.

Earlier, budget airline AirAsia Zest – jointly owned by Zest Airways Inc. of businessman Alfredo Yao and AirAsia Inc. Philippines – sought the approval of the proposed increase in fuel surcharge on five domestic routes and eight international destinations.

AirAsia Zest is set to raise by P100 bringing to P400 from P300 the fuel surcharge imposed on passengers of Manila – Cebu, Manila – Kalibo, Manila Puerto Princesa, Manila – Tacloban, and Manila – Tagbilaran.

The low cost airline is also increasing the fuel surcharge imposed on passengers of eight international destinations between 30 percent and 189 percent.

The fuel surcharge for Manila – Kota Kinabalu would now cost P650 from P460; Manila – Kuala Lumpur to P900 from P680, Manila – Shanghai to P1,600 from P680, Manila – Macau to P600 from P460, Manila – Incheon to P2,600 from P900, Cebu – Incheon to P2,450 from P900, Kalibo – Incheon to P2,450 from P900, and Kalibo – Pusan to P2,450 from P900.

AirAsia Philippines and ZestAir entered into a strategic alliance agreement in March last year. AirAsia Philippines completed the acquisition of an 85 percent economic interest and 49 percent voting rights in ZestAir as well as a 100 percent interest in Yao ‘s Asiawide Airways Inc.