China Financial Daily

July 2, 2009

Domestic fuel oil prices or re-entry

Filed under: Financial News — Tags: — lily @ 11:01 am -0700

Domestic fuel oil prices or re-entry
Since yesterday, Shanghai Airlines, Southern China and Japan to suspend collection of fuel surcharges on flights. However, with the international routes of different cut fuel surcharges, with the National Development and Reform Commission announced the increase in kerosene prices, domestic airlines are facing renewed pressure from a heavy cost, a six-month suspension of the fuel surcharge on domestic flights may be re-imposed.

Since July 1st (to the date on which the vote), the Shanghai Airlines, China Southern Airlines to suspend flights of China and Japan imposed fuel surcharges. As early as April this year, Sino-Japanese routes fuel surcharge by 400 yuan per leg down to 35 yuan. Japan in July in the “free” open a time when airlines charge at the same time suspended in the fuel surcharge on routes.

The evening of June 29, National Development and Reform Commission also announced that ex-factory price of aviation kerosene with the 25.6 percent increase in gasoline and diesel, which makes domestic airline once again facing heavy cost pressures, it has been canceled to resume six-month fuel surcharge for domestic flights is imperative only when the relevant departments may have to re-entry decisions.

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