Oil Woes: Thirteen Hong Kong Airlines Increase Surcharge

Due to continuously rising oil prices, the Civil Aviation Department of Hong Kong has given formal approval to 13 airlines to maintain or increase surcharges on passenger transportation from June 1, 2008.

The thirteen airlines are Aeroflot, Air Canada, Air China, Air Mauritius, All Nippon Airways, Cathay Pacific Airways, China Eastern Airlines, Royal Nepal Airlines, Pakistan International Airlines, Saudi Arabian Airlines, Shanghai Airlines, Singapore Airlines, and Turkish Airlines.

Of these, only Royal Nepal Airlines and Saudi Arabian Airlines will maintain the original surcharge, and all the other airlines will raise the surcharge by between 22% to 39% for example Cathay Pacific Airways, Air China, and China Eastern Airlines will levy a 37% increase. The surcharge will be increased from HK$125 to HK$171 for short routes and, for long-distance routes, it will go up from HK$518 to HK$710, representing an average growth rate of 37% which is higher than ever before. The new price of surcharge will be effective until July 31.

According to The Civil Aviation Department of Hong Kong, the price of oil used for aircraft has increased by 50% from the beginning of this year, going up from US$106 per barrel to US$159 per barrel. Because of recent oil price rises there is the possibility of an additional surcharge in August. HKTB Chairman The Hon James Tien said that the surcharges are expected to affect Hong Kong's tourism sector by the end of the year.