Hong Kong’s two major carriers will impose levies on passengers to cover the increasing cost of fuel. The city’s aviation authorities say they will allow Cathay Pacific and Dragonair to impose surcharges.

Cathay can add between US$4 for short-haul flights to US$14 on long haul services. Dragonair will add US$5 charge per sector.

Eleven other airlines not based in Hong Kong have also received the permission for a surcharge to help cover the record cost of fuel, now at a 14-year high.

Dragonair chief financial officer, Mr. Francis Wai, estimates the boost in fuel costs added about 5 per cent to airline costs in the first quarter.

(CNTA.com June 10, 2004)