PAL, other airlines seek higher fuel surcharge

MANILA, Philippines - Flag carrier Philippine Airlines Inc. (PAL) and other airlines are seeking the green light from the Civil Aeronautics Board (CAB) to increase the fuel surcharge on international and local flights amid the rising price of aviation fuel in the world market.

PAL, jointly owned by taipan Lucio Tan and diversified conglomerate San Miguel Corp. (SMC), has sought to adjust upwards by P50 the fuel surcharge imposed on its remaining domestic routes.

PAL is raising the fuel surcharge imposed on passengers going to Kalibo and Cebu from Manila to P400 from P350 as well as passengers going to Davao and Gen. Santos from Manila to P500 from P450.

PAL affiliate PAL Express (formerly Airphil Express), on the other hand, has also asked CAB to allow the airline to impose a P50-P150 increase in the fuel surcharge imposed on passengers on 44 domestic routes from Manila, Cebu, Iloilo, Puerto Princesa, Davao and Zamboanga.

From Manila, PAL Express would impose a P550 fuel surcharge for flights to Dipolog and Gen.Santos; P500 for flights to Butuan, Cagayan de Oro, Cotabato, Ozamiz, Surigao and Zamboanga; P450 for flights to Roxas; and P400 for flights to Basco, Busuanga, Masbate, Puerto Princesa, Bacolod, Calbayog, Catarman, Caticlan, Dumaguete, Iloilo, Kalibo, Tacloban and Tagbilaran,

The PAL budget unit would also charge P380 for Laoag flights; P350 for flights to Legazpi and Tuguegarao; and P300 for flights to Naga.

For flights emerging from Cebu, PAL Express would now charge P400 for flights to Busuanga; P350 for flights to Butuan and Davao; P300 for flights to Caticlan, Iloilo, Tacloban, Cagayan de Oro, Puerto Princesa, Ozamiz and Zamboanga; and P250 for flights to Bacolod.

PAL Express would be charging P300 from Davao and Zamboanga going to Cagayan de Oro, Zamboanga, Jolo and Tawi-tawi, P400 for flights to Gen. Santos and P350 for Puerto Princesa from Iloilo.

The airline has also asked the CAB to allow it to impose a $30 fuel surcharge for new flights to Bangkok from Manila as well as to Shanghai and Hangzhou from Kalibo.

PAL has streamlines its operations to focus on international routes particularly to the US and Europe as it transferred all its domestic flights except Cebu, Davao, and Kalibo to PAL Express last Aug. 1.

Last March, PAL has dropped the Airphil Express brand and revived the PAL Express brand as part of efforts to help the low cost carrier (LCC) improve and align its service standards and product offerings with PAL.

Likewise, Eva Airways Corp. is set to raise the fuel surcharge imposed on international passengers to Taipei from Manila to $32 from $30 while Qatar Airways is seeking permission to impose a $154 fuel surcharge on business class passengers and $120 for economy class passengers for outbound flights from Manila and Clark.

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 price of jet fuel averaged $123.8 per barrel nearing the full year target of $124.5 per barrel set by IATA.