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Fri, April 28, 2006 : Last updated 20:58 pm (Thai local time)



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Home > Business > Local airlines to up fuel surcharges





Local airlines to up fuel surcharges

Airlines are looking at lifting their fuel surcharges on both domestic and international routes while bus operators are trying to hold the line on fares as long as the retail diesel price does not climb above Bt26.98 per litre.

Thai Airways International Plc will increase its fuel surcharge for medium- and long-haul flights by US$10 (Bt377) to $15 over the next two months.

For medium-range services, the national carrier plans to raise the surcharge on its Bangkok-Japan and Bangkok-China routes from $25 to $35.

Passengers travelling from Bangkok to Europe or the United Sates will pay $60-$65 for fuel in the future instead of $50.

Acting president Somchainuk Engtrakul said yesterday that the airline needed to trim operating costs, particularly fuel bills.

"THAI's fuel surcharge, which is collected from passengers, is covering only 48 per cent of the cost, down from 60 per cent earlier. we wanted to solve this problem," he said.

The airline will not adjust its airfares, as it has to maintain its competitiveness, he said.

Many airlines operating between Thailand and Europe have already increased their surcharge. Some of them are charging up to $70, he said.

THAI will decrease its fuel surcharge for short haul flights from $25 to $15, but only for Bangkok-Singapore and Bangkok-Laos services.

Nok Air's chief executive, Patee Sarasin, said the budget airline might increase its fuel surcharge at the beginning of next month. It is expected to go from the current Bt200 per ticket up to Bt300.

Nok Air is carefully monitoring oil prices but any fuel surcharge adjustment depends on the market, he said.

The airline operates 14 daily flights to Chiang Mai, three daily flights to Udon Thani, four daily flights to Hat Yai and two daily flights to Phuket. It also offers daily morning flights to Nakhon Si Thammarat and Trang and four weekly return flights between Chiang Mai and Udon Thani.

Yongyut Lujintanont, Cathay Pacific's marketing manager for Thailand, Cambodia and Burma, said the head office in Hong Kong was considering changing its fuel surcharge. Once the airline decides to adjust the surcharge, it would cover all world routes, he said.

"The fuel surcharge is subject to market conditions," he said.

Cathay Pacific charges $15.50 for short haul routes. For long hauls, it charges $52.

Suchat Sritama

The Nation

----------------------

Bus fares the same, for now

Suchinda Cherdchai, a major provincial bus operator, promised to maintain fares until the retail diesel price reaches Bt28.69 per litre, and to keep running buses so as not to cause people trouble.

Diesel is going for Bt26.09 a litre at several petrol stations.

Suchinda's pledge was made jointly with Deputy Transport Minister Chainant Charoensiri under the condition that the government would ease the fuel cost burden of the bus operators by giving a Bt1-per-litre break in diesel prices at petrol stations.

Previously, Suchinda threatened the government to raise bus fares by nine satang per kilometre or else she would keep her buses parked.

 








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