Seair to impose higher fuel surcharge

MANILA, Philippines - Low-cost carrier Southeast Asian Airlines (Seair), a unit of Tiger Airways Holdings Ltd. of Singapore, is set to impose higher fuel surcharge for all its international and domestic passengers on the back of the continued rise in the price of aviation fuel in the world market.

Seair has filed a petition with the Civil Aeronautics Board (CAB) seeking to impose a fuel surcharge of P500 for all its international passengers and P300 for all its domestic passengers flying within the Philippines except Davao.

The budget airline is also set to impose a fuel surcharge of P400 for the passengers of its Manila to Davao flights.

The CAB allows airlines to impose fuel surcharge on international and domestic passengers as a temporary relief to help them recover losses arising from the increase in jet fuel prices in the world market.

Latest results of the jet fuel price monitor of the International Air Transportation Association (IATA) showed that average price of jet fuel rose 3.8 percent to $132.4 per barrel from a month ago level or higher than the full year target of $130.3 per barrel set by IATA.

Seair flies from Manila to Cebu, Davao, Tacloban, Iloilo, Puerto Princesa, Bacolod, and Boracay via the Ninoy Aquino International Airport (NAIA). Its international destinations include Hong Kong, Singapore, Bangkok, and Kota Kinabalu via the Clark International Airport in Pampanga.

In August last year, Tiger Airways through wholly-owned subsidiary Roar Aviation II Pte Ltd. acquired a 40-percent stake in Seair for a total consideration of $2.5 million.

The investment in Seair is Tiger’s second joint venture after it acquired a 33 percent stake in Mandala Airlines in Indonesia last January.

Tiger said the acquisitions are part of its strategy for expansion in the region and that Seair would be adopting the Tiger business model that includes offering value fares for domestic and international destinations within a five-hour flying radius of Manila and Clark, its current hubs.

Seair operates two Airbus A319s and three A320s and more aircraft are expected to arrive to beef up its fleet. It has been in operating in the Philippines for 17 years and now flies to four regional and nine domestic destinations.

Tiger was established in 2004. Its major shareholders include Singapore Airlines Ltd. with 32.84 percent and Dahlia Investments Pte Ltd. with 7.37 percent. It operates a fleet of 34 aircraft mostly Airbus A319s and A320s located in Singapore, Australia, Indonesia and the Philippines.