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The Civil Aviation Department (CAD) of Hong Kong Special Administrative Region government approved on Thursday a 6 percent downwards adjustments of the passenger fuel surcharge by six airlines as a result of falling oil prices.

 

The passenger fuel surcharge will be sliced from HK$113 (US$14.5) per passenger for short haul flights to HK$106 (US$13.6). For long haul flights, the fee will be cut from HK$466 (US$59.7) to HK$438 (US$56.2).

 

The six airlines were Cathay Pacific Airways, Air China, China Eastern Airlines, China Southern Airlines, Hong Kong Dragon Airlines and Xiamen Airlines.

 

Meanwhile, the CAD also approved another four foreign airlines -- Jetstar Asia, Pakistan International Airlines, Royal Nepal Airlines and Saudi Arabian Airlines, to maintain their existing levels of fuel surcharges.

 

The newly approved surcharges will take effect from Feb. 1.

 

Fuel surcharge is a type of aviation tariff which requires the approval of the relevant aeronautical authorities before it could be levied.

 

When approving applications for levying fuel surcharges, the CAD would take into account changes in the prices of aviation fuel, the justifications provided by the airline operators and other relevant factors such as the charges levied by the other airlines.

 

"When approving fuel surcharges, CAD would ensure that the revenue so generated would not exceed the additional costs borne by the airline operators due to increased oil prices during the corresponding period," a CAD spokesman said.

 

On global oil markets, the crude oil prices steadied above US$52 a barrel on New York Future Exchange.

 

(Xinhua News Agency January 19, 2007)