The Civil Aeronautics Board (CAB) plans to scrap the fuel surcharge on domestic and international flights this year to lower the cost of passenger fare and airfreight fees following the continued decline in the price of oil in the global market.
CAB executive director Atty Carmelo Arcilla said the effectivity of the removal of the fuel surcharge for “all international and domestic airlines with operations in the Philippines” will depend on the signing of the final resolution, which could take place in early 2015.
“This surcharge is imposed by airlines to cover volatile price levels of fuel like upward spikes,” Arcilla explained.
“Because of the significant reduction in fuel prices, there is now no more basis for the surcharge,” the CAB chief added.
Global oil prices have fallen sharply over the last six months and are seen to recover only in the second half of 2015.
Dexter Yu, director of the Aircargo Forwarders of the Philippines, Inc., told PortCalls in a text message that “this is good news for the industry as it makes airfreight more competitive and a more viable alternative.”
Yu added this is also “good for the customers with the current port congestion problem and better for our country as well.”
There were reports that at the height of the Manila port congestion, some exporters opted to ship via airfreight to ensure timely deliveries. – Roumina Pablo
Image courtesy of Michelle Meiklejohn at FreeDigitalPhotos.net
