The Civil Aeronautics Administration yesterday announced that the aviation fuel surcharge would be reduced to NT$0 due to tumbling international aviation fuel prices, adding that the new measure would take effect on Sunday.
It would be the first time that international flight passengers would not have to pay the surcharge, which is included in air fares, since the agency allowed Taiwanese airlines to charge it in July 2004.
Aviation industry observers said that reducing the surcharge is not likely to boost to the flagging travel and aviation industries, as many people are refraining from traveling overseas for fear of contracting COVID-19.
Photo courtesy of China Airlines
For airlines to charge the surcharge, the international aviation fuel price has to be more than US$40 per barrel, the agency added.
However, CPC Corp, Taiwan (CPC, 台灣中油) announced last week that the international aviation fuel price had dropped to US$29.62 per barrel, which does not meet the requirement for airlines to charge customers a fuel surcharge.
Passengers on international flights would need to pay the surcharge if the aviation fuel price rises above US$40 per barrel, the agency said, adding that the amount each international passenger would have to pay would be adjusted to reflect changes to the fuel price.
Agency records showed that the aviation fuel surcharge peaked in June 2008, when short-haul passengers were charged US$32.50 per aviation segment and long-haul passengers paid US$84.50 per aviation segment.
In March, the surcharges for short-haul and long-haul flights were US$12.50 and US$32.50 per aviation segment respectively, the agency’s records showed.
However, the surcharges last month dropped to US$5 and US$13 respectively.
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