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February 3, 2015

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Domestic air ticket prices drop

DOMESTIC flight tickets were cheaper to buy from yesterday after Chinese airlines stopped imposing fuel surcharges on domestic routes as jet fuel prices continued to drop.

Domestic airlines, including Xiamen Airlines and Lucky Air, have stopped levying the surcharges, and other airlines will follow soon, said Ctrip, China’s biggest online ticket-selling platform.

In January, passengers had to pay 30 yuan (US$4.80) fuel surcharge on domestic routes of over 800 kilometers, and 10 yuan for shorter routes. The surcharge for routes over 800 kilometers was 120 yuan in February 2014.

But passengers on domestic routes still must pay a 50-yuan Civil Aviation Development Fund fee, formerly known as the airport construction fee, on top of their airfares.

They pay a 90-yuan development fund fee for international routes departing from China, according to the Civil Aviation Administration of China.

The CAAC said the fund for both routes will be charged till the end of the year.

For international routes, Malaysia-based AirAsia has stopped charging fuel surcharge from January 26, while Australia-based Qantas and Virgin Australia have also said they would stop the surcharge.

The fee suspension follows the drop in the price of domestic jet fuel by 1,013 yuan per ton to 3,782 yuan this month as a result of the decline in the benchmark price of Singapore jet kerosene, according to Ctrip. The jet fuel price was 7,055 yuan per ton last February.

It was the second time Chinese airlines removed the fuel surcharge. They stopped levying the surcharge for 10 months in 2009 due to the low price of jet fuel.

Ctrip also said domestic flight tickets will be cheaper to purchase in March after the Spring Festival.




 

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