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Air China Applies For Resumption Of Fuel Surcharges

AIR China has submitted an application to the country's fuel price controller as it seeks to resume fuel surcharges on domestic flights to offset rising jet fuel costs.

"We have applied to government authorities about the resumption but it's still unclear which level the fuel surcharges will return to," said Huang Bin, board secretary of the Beijing-based carrier.

The National Development and Reform Commission, which controls fuel prices, authorized state oil firms to raise factory-gate prices for jet fuel almost 26 percent to 5,050 yuan (US$739) a ton effective on June 30, following a 13 percent jump in May.

The move triggered some domestic carriers, including Guangzhou-based China Southern Airlines, to call for a resumption of fuel surcharges, which were suspended in January due to a fall in kerosene prices as global oil prices dropped.


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