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The country's top three airlines plan to appeal to the government to eliminate the tariff on jet fuel imports in a bid to reduce their operating costs, the 21st Century Herald reported.
Air China, China Eastern Airlines and China Southern Airlines are drafting a request to submit to the State Council, or Cabinet, the report said.
The airlines will also ask for a reduction in the value-added tax for jet fuel imports and sales, said the report.
China's jet fuel import tariff is currently 9 percent and the value-added tax for jet fuel imports and sales is 17 percent, according to the report. Domestic airlines are suffering from soaring fuel prices and high tariffs.
Domestic jet fuel prices rose 25 percent in 2005, pushing the three airlines' costs up by 7 billion yuan (US$875 million), said the report.
Jet fuel costs currently account for 40 percent of airlines’ overall costs from 25 percent in 2004, according to the report.
(Shenzhen Daily January 10, 2006)
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