China cuts fuel surcharges on domestic flights

By Xin Dingding (China Daily)
Updated: 2008-12-20 07:49

China's top planning body, the National Development and Reform Commission said on Friday it will cut fuel surcharges on domestic flights from Dec 25.

This came after the commission lowered the jet fuel price by more than 30 percent late on Thursday.

The charge on flights of more than 800 km will decline to 40 yuan ($5.60) from 150 yuan per ticket, while that for routes shorter than 800 km will fall from 80 yuan per ticket to 20 yuan.

The rate will equal the level in the first quarter of 2006, when the surcharges began to float in response to fluctuations in the international jet fuel price.

The last adjustment to the fuel surcharge took effect on July 1 this year, when it was raised from 60 yuan to 80 yuan per passenger for short-haul flights, and from 100 yuan to 150 yuan per passenger for long-haul flights.

The reduced surcharges are expected to encourage more people to travel by air, said Li Xiaojin, a professor at the Civil Aviation University of China in Tianjin.

"The present fuel surcharges are relatively high compared to the ticket price, putting some people off air travel," he said.

Ye Ruozhou, who works in Beijing, said she may consider flying to Nanjing to visit her parents during the coming Spring Festival holiday, due to the surcharge cut.

The cheapest air ticket from Beijing to Nanjing is now just 300 yuan, almost the same as a train ticket. "But if the surcharge were not cut, my husband and I would have to pay an additional 800 yuan on a round trip by air," she said.

Major Chinese carriers, hit hard by the global economic slowdown, have all offered big discounts in order to lure passengers.

As they do not need approval from the commission or the civil aviation authority to cut fuel surcharges on international and regional flights, several airlines have already reduced the rate.

Since Dec 1, China Eastern, Shanghai Airlines and China Southern have cut fuel surcharges on flights from the mainland to Hong Kong from 175 yuan to 95 yuan.

China Southern and Air China have also reduced the surcharge on flights from Hong Kong to the mainland from 196 yuan to 108 yuan this month.

China Southern, China Eastern and Air China all rose in Shanghai trading on Friday following the commission's decision.

Xinhua contributed to the story