China will cut jet fuel surcharge on domestic flights from
January 21 because oil prices have fallen in the international
market.
This is the first drop in fuel surcharge since the General
Administration of Civil Aviation of China (CAAC) reintroduced the
surcharge in 2005 and lifted it twice in 2006 when oil prices rose
to record highs.
A passenger flying less than 800 kilometers will now pay a
surcharge of 50 yuan (US$6.4) instead of 60 yuan (US$7.7), a joint
release of the CAAC and the National Development and Reform
Commission said yesterday.
And those flying beyond 800 kilometers will pay 80 yuan
(US$10.3) as surcharge, 20 yuan (US$2.56) less than before. Babies,
as usual, are exempted, and children and disabled soldiers and
policemen will have to pay only half the surcharge.
Domestic airlines earned at least 7 billion yuan (US$900
million) from fuel surcharge in the first 11 months of last year,
Shanghai Securities News reported yesterday.
But with oil prices are falling now, the reform commission has
cut the aviation oil price twice this month. On January 1, the
commission reduced the price by 180 yuan (US$23) a ton, followed by
another 90 yuan (US$11.6) cut on January 14.
Aviation oil costs 6,040 yuan (US$777) a ton, 4.3 percent less
than before.
Most airlines cut their fuel surcharge on international flights
after oil prices fell, but passengers on domestic routes,
controlled by the CAAC, had to pay the same amount.
Some people had appealed on online forums that the commission
and CAAC reduce the surcharge.
But even after yesterday's announcement, some netizens seemed
disappointed, saying that the lowered surcharge was "still too
high".
Experts say aviation oil accounts for at least 40 percent of
airlines' operational costs for most domestic carriers.
(China Daily January 18, 2007)