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Manufacturers, Exporters, Wholesalers - Global trade starts here.
Airlines Enter High Season as Fuel Prices Rise

From April 10 air travelers in China will pay up to 20 yuan in surcharges as airlines find new ways to cope with rising fuel prices.

Chinese airlines will welcome the high season despite the fuel surcharge which is in place until October. The six months will include two of China's "golden week" holidays: the Labor Day and National Day vacations.

Passengers will be charged an extra 10 yuan on flights less than 800 kilometers, and 20 yuan over that, according to the new regulation jointly issued by the National Development and Reform Commission and the General Administration of Civil Aviation of China.

China consumes about eight million tons of aviation fuel every year. When the price rises 300 yuan per ton, the total cost will increase 2.4 billion yuan. The price rise this time will benefit Chinese airlines, thus reducing the impact of high fuel cost.

Supply generally exceeds demand in China's passenger transportation market. So many airlines have to compete on the ticket price. Facing the high fuel situation, airlines adopted a strategy to save the fuel.

The China Southern Airlines has set a goal to save 200 to 300 million yuan in fuel costs to cover the price rise.

The China Eastern Airlines will introduce 25 new aircraft this year, many of which have low fuel consumption.

Some airlines have reduced the number of magazines on board and the weight of cabin food trolleys.

Last year, Air China recorded a profit of 2.92 billion yuan, thanks to restrictions of flying heights and speeds to save fuel, said Li Jiaxiang, president of Air China.

Tourism industry experts said the increase in fuel prices failed to cause an instant reaction by tourists and it was natural for airlines to save fuel in order to control costs.

High fuel prices were a problem for Chinese airlines and fuel efficiency was a saving, said Tian Baohua, president of the Civil Aviation Management Institute of China.

(Xinhua News Agency April 10, 2006)

Int'l Travelers Face Fare Hike, More Trip Options
Airlines Take New Steps to Save Fuel
Jet Fuel Prices Become More Market-oriented
China Raises Fuel Surcharge for Domestic Air Travels
Shanghai to Hold Hearing on Floating Taxi Fares
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