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Cheaper flights on cut to fees

(Shanghai Daily)

08:36, January 05, 2012

Flying will become cheaper as Chinese airlines begin to trim fuel surcharges on domestic routes from today as jet fuel prices decline.

The fuel surcharge on domestic routes longer than 800 kilometers will be cut to 130 yuan (US$20.64) per passenger from the previous 140 yuan, while the fee on other routes will remain at 70 yuan, Air China and Shandong Airlines announced on their websites yesterday.

The price of domestic jet fuel may drop by 300 yuan per ton to 7,350 yuan this month with the decline in the benchmark price of Singapore jet kerosene, said Han Jingyuan, a domestic civil aviation researcher.

On November 1, the NDRC and the CAAC issued rules which revised the system for fuel surcharges so that airlines can adjust them only when the ex-factory price fluctuates more than 250 yuan a ton.

The new system allows domestic airlines to increase fuel surcharges only from the sixth day of a month but they should cut them after the fall in the jet fuel price. The airlines previously could adjust surcharges every month when jet fuel prices moved.

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