Foreign and domestic airlines operating in the Philippines have scrapped their fuel surcharges following the government lifting of their authority to impose such charges in the wake of falling oil prices globally.
The Civil Aeronautics Board (CAB), in an advisory, said 27 foreign airlines revoked their fuel surcharges effective Jan 8.
These airlines include Air Asia, Gulf Air, Air China, Japan Air International, Air Micronesia, Silk Air, Singapore Airlines, Eva Airways, Air Busan, Air Nippon Airlines, Jin Air, Korean Air, Thai Airways, Etihad Airways, Emirates, Qantas Airways, China Airlines, Cathay Pacific Airways, Delta Airlines, HK Dragon Airlines, United Airlines, Air Niugini, Jeju Air, KLM Royal Dutch Airlines, Royal Brunei Airlines, Qatar Airways, and Asiana Airlines.
For domestic airlines, flag carrier Philippine Airlines and Cebu Pacific Air said they have removed fuel surcharge in compliance with CAB Resolution No. 79. The ruling signed last December last year lifts the authority of domestic and international airlines operating to and from the Philippines to impose fuel surcharge on domestic and international cargoes.
CAB said that with the “substantial and continuous decrease of fuel prices in the world market,” its Board deemed it time for airlines to discontinue imposing fuel surcharge.
CAB Memorandum Circular No. 5-2015, dated January 8, states that no fuel surcharges on passenger and cargo should be collected from January 8, 2015.
It added that CAB Resolution No. 79 is “prospective,” meaning tickets sold prior to January 8 with fuel surcharge add-on but “intended for travel at a later date shall retain the fuel surcharge add-on and the amount of fuel surcharge shall not be refundable.”
CAB said it will not entertain any fuel surcharge application or extension until the Board gives it permission to do so. It added that airlines that will continue to impose fuel surcharge on tickets sold beginning January 8 will be subject to sanctions under Republic Act No. 776, or the Civil Aeronautics Act of the Philippines.
CAB executive director Atty Carmelo Arcilla, in a text message to PortCalls, said the resolution is indefinite “until the need (to impose fuel surcharge) arises again.” – Roumina Pablo
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