China to lower fuel oil surcharge of domestic airlines

16:42, April 01, 2010      

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China will reduce the per-passenger fuel surcharge rate for its domestic airlines by 3 percent from April 1, 2010 to March 31, 2011, according to a release from the National Development and Reform Commission (NDRC) and the Civil Aviation Administration of China (CAAC) on April 1.

According to the actual aviation kerosene consumption and the total passenger amount of China's domestic airlines in 2009, as well as the view that airline companies should pay at least 20 percent of the incremental cost of the oil they consume, the fuel oil surcharge should not surpass 0.0028 yuan per kilometer for each passenger if the comprehensive purchase cost of the domestic aviation kerosene exceeds the benchmark price by 100 yuan per ton.

The NDRC and CAAC will require airline companies to independently fix whether, how and when they will collect the fuel oil surcharge. They should also go on record by making the results public as well as reporting it to the NDRC and CAAC.

By People's Daily Online


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