Air fare hike expected, too

Following the increase in land transport fares, the Civil Aeronautics Board (CAB) has approved an increase in fuel surcharges of about 11 local and foreign air carriers.

CAB deputy director Carmelo Arcilla said 35 airline companies have filed separate petitions to impose fuel surcharges on their international flights.

The petitions included those from Philippine Airlines (PAL) and Cebu Pacific Airlines calling for a $6 fuel surcharge.

Arcilla disclosed CAB is set to approve other petitions for additional surcharges in the next few weeks. "We have approved them," Arcilla said. "Eleven of the 30 or 35 airline companies have been granted and others will be acted upon soon."

On June 16, PAL and Cebu Pacific filed a joint petition before CAB for a $6 increase in their overseas fare per one-way trip.

The increase took effect immediately which imposes additional charge for international flights to cover the high cost of using aviation fuel in the long haul.

PAL said the increase in jet fuel prices raised its operating cost per passenger by $20.84, while Cebu Pacific claimed its operating expenses went up by $9 per passenger.

Both airline firms, however, failed to announced whether it would impose similar charges on their domestic flights.

Aviation fuel price at the world market has registered an increase of $45.71 per barrel from $28.25 in May 2003. CAB said the fuel surcharge will be in effect for as long as prices of aviation fuel remain high, but the additional charges would have to be removed or reduced accordingly once oil prices drop.

According to International Air Transport, the aviation industry stands to lose some $5 billion in 2004 because of high fuel costs.

Aside from PAL and Cebu Pacific, nine other foreign airlines were allowed to impose passenger fuel surcharges.

Among them are Malaysian Airlines at $6; Royal Brunei Airlines, $5 for its Manila-Bander Seri Begawan route and $2.50 from Bandar-Seri Begawan and routes beyond.

Singapore Airlines was also allowed to impose addition $5 along with British Airways, $4; Vietnam Airlines, $5; China Airlines, $7; Asiana Airlines, $7; Qatar Airways, $5; and Cathay Pacific Airways Ltd. at $5 for its short haul and $14 for longer flights.

Among the other airline firms awaiting the decision of the CAB on their similar petitions include the American carrier Northwest Airlines ($20), Papua New Guinea’s Air Niugini ($10.50), British Airways ($4), Taiwan’s Eva Air ($6), Australia’s Qantas Airways ($10.70), and Saudi Airlines at $5.