ANA to Partly Raise Fuel Surcharges from October, Regrouping Areas of Surcharges
ANA will apply revised jet fuel surcharges for tickets to be issued between October 1 and December 31, by regrouping the areas to which the surcharge applies and setting the new surcharge level.
A primary change focuses on the areas to be regrouped, namely from the current “Hawaii, India, Thailand, Singapore, Malaysia” route into two new routes “Hawaii, India” and ” Thailand, Singapore, Malaysia”. The present routing “Vietnam, Guam, Hong Kong, Taiwan” will also be regrouped into two, namely “Vietnam, Guam” and a new group “China, Hong Kong, Taiwan” by listing Hong Kong and Taiwan under the current “China”. Effective from October 1 the regrouping will, in effect, raise the fuel surcharge in one area and keep the status quo in the other.
ANA has also fixed the benchmark kerosene price for fuel surcharges applicable to the newly regrouped areas with the jet fuel price averaging between 140 US$ and 150 US$ from October 1 to December 31. The airline has meanwhile set up two higher kerosene benchmarks with a range from150 to 159 US$ and 160 to 169 US$ per barrel as a measuring stick, should the jet fuel continue to hike.
Commenting on the regrouping of the routes and the revision of the surcharge levels, ANA’s public relations office said, “We have placed a special emphasis on finding a balance based, especially, on our aircraft fuel consumption and on the competitive environment with our competitors.” The airline added, “We had originally intended to further segment the current fuel surcharge levels to set up a surcharge amount per distance flown, then decided otherwise since things may turn out to be too complicated and not transparent to our customers.”
The airline is therefore said to have made a revision only to the regrouping of applicable areas of surcharges. Considering a possible impact on the market demand as well, ANA mentioned, “We have effected the changes exactly according to the market needs, judging from the passenger production figures.”
Regarding a tentative surcharge level set due to a possible further increase of the fuel surcharges, the airline explained, “It is the worst scenario that we might encounter. The next benchmark period from January to March next year shows a further rise, but we don’t necessarily simply implement the increase.” The airline implied that it might freeze the surcharge level, not reflecting the further soaring jet fuel price as it was observed during the period from January to March this year when the two Japanese airlines had a different strategy for the jet fuel surcharge.
Source: Travel Vision
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