# Costs of air travel to increase in the Philippines



## Tim_L (Jul 14, 2018)

Cost of flights to rise as fuel surcharges reintroduced in the Philippines

Flights in the Philippines are set to get more expensive after the Civil Aeronautics Board approved the reimposition of fuel surcharges.

CAB had previously disallowed the surcharges in 2015. However, in a statement issued today (Monday, September 10), the board said: “Airline Fuel surcharge is an optional fee, imposed and collected by airlines to recover fuel costs and stem losses caused by an upward spike in fuel cost.

“Fuel surcharges are not a part of the basic airfare and may be reduced or removed depending on the price of jet fuel in the market, in accordance with prevailing international practice.”

In its resolution, the CAB noted that that aviation fuel prices have increased to $85.16 per barrel as of April 2018. This is up by 25.24 per cent from the $63.66 per barrel in April 2017.

Under the resolution, passengers of one-way domestic flights may be charged anything up to 769 pesos. For international flights, the maximum surcharge will be 9,860 pesos.

“The applicable fuel surcharge will be determined based on the two-month average of jet fuel MOPS [Mean of Platts Singapore] prices in its peso per litre equivalent, and will be fixed for two months,” the CAB resolution read.

“If the two-month price average of jet fuel per litre falls below 21 pesos, no fuel surcharge will be collected.”

According to the resolution, the fuel surcharge will take effect immediately and will be the same for all passengers, except for infants travelling without their own allocated seats.

None of the country’s major airlines have yet issued any statement on the reintroduction of fuel surcharges.


----------



## Manitoba (Jun 25, 2014)

I have no problem with a fuel surcharge. Air travel should be a completely deregulated method of travel, except for the obvious safety needs etc but on pricing and levels of service it should be wide open.

If the price gets too high, I simply will not fly.


----------



## mogo51 (Jun 11, 2011)

Manitoba said:


> I have no problem with a fuel surcharge. Air travel should be a completely deregulated method of travel, except for the obvious safety needs etc but on pricing and levels of service it should be wide open.
> 
> If the price gets too high, I simply will not fly.


Too far to swim Manitoba!


----------



## Manitoba (Jun 25, 2014)

mogo51 said:


> Too far to swim Manitoba!


Take a boat.

I took the ferry back from Balcold City to Manila. For two in a stateroom it was less than 2 airfares and that included one nights accommodation and 3 meals.

Or just don't go. If it costs too much, just stay home. Travel is not a right. The ability to travel is but you have to be able to pay for it.

Personally I'd charge airlines the full cost of operating airports and the air traffic system and let them pass these on to the end consumer as they see fit. Reduce barriers to entry, if anyone can provide a safe service then they should be allowed to do so. If the airports are too crowded then have periodic auctions for landing slots and let the market sort it out. Any profits from the sale of landing slots could go into expansion of the air transportation system which would increase supply and reduce prices until some balance was achieved.

I also realize that roads cost and these should be paid for by some sort of user pay system. It can be tolls (except these slow down traffic significantly) or fuel taxes or vehicle licensing fees or any combination of these.


----------

