Sign up | Log in



Home  >>   Daily News  >>   Malaysia  News  >>   Aviation  >>   Airlines may increase fuel surcharge
NEWS UPDATES Asean Affairs        14 January 2011

Airlines may increase fuel surcharge

Related Stories

December 28,2010
Open skies for Malaysia airlines

November 26, 2010
AirAsia Indonesia to Surpass Malaysia Business

September 23, 2010
Indonesia delays Garuda's share sales until January 2011

August 31, 2010
Airport woes in Indonesia

April 29, 2010
Indonesia, Japan sign air transport deals


April 10, 2010
Indonesia reminds Myanmar junta of need to hold tranparent elections

January 16, 2010
Five Indonesian airports ready for open sky

Local airlines may increase air fares or fuel surcharges should their regional peers do so as jet fuel prices continue to trend upwards.

As crude oil prices continued to trade above US$90 per barrel, aviation jet fuel price for this week was quoted at US$106.3 per barrel, based on the International Air Transport Association's website.

Avenues for airlines to contend with rising oil prices include increasing airfare, re-imposing or increasing fuel surcharge.

AirAsia X chief executive officer Azran Osman-Rani said the long-haul budget carrier would raise airfares if competing airlines operating similar AirAsia X routes did so.

"We will have to see how far (up) oil price goes, if like 2008 levels (which peaked at US$146), before we can make that decision," Azran said yesterday.

He added that AirAsia X did not have a targeted price increase and it was important for it to maintain its price differentiation in terms of keeping fares lower, compared with other airlines competing on similar routes.

"Our (A330) aircraft also has more seats, which means that the cost of fuel per passenger is lower than other aircraft," he said.

Malaysia Airlines (MAS) managing director and chief executive officer Tengku Datuk Seri Azmil Zahruddin said fuel surcharge for its tickets was under constant review.

"In light of sustained increase of jet fuel prices in recent months, MAS is monitoring the situation closely. Any increase in fuel surcharge would be benchmarked against our competitors to ensure our fares remain competitive," he told StarBiz.

An aviation analyst attached to a foreign research house said MAS might at increasing fuel surcharge, following Singapore Airline's (SIA) decision to do so last month. SIA said in December that it was increasing its fuel surcharge, its first hike since June 2008, due to sustained escalation in the price of jet fuel in recent months.

Based on the airline's website, both SIA and its unit, SilkAir, would see fuel surcharge increase between US$3 and US$25 per sector, depending on the distance and class of travel. AirAsia group chief executive officer Datuk Seri Tony Fernandes said that the airline was not looking to impose a fuel surcharge or increase air fares at the moment.

"We will continue to monitor oil prices and make a decision when the need arises," he said. Meanwhile, a local aviation analyst said low-cost carriers were unlikely to impose a fuel surcharge unless oil prices exceeded US$100 per barrel.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below




1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Today's  Stories    14  January 2011 Subsribe Now !
• Ground broken for new Cambodian dam
Subcribe: Asean Affairs Global Magazine
• Indo rupiah heads down Asean Affairs Premium
• Coal prices, government policy, hit state utility
• Airlines may increase fuel surcharge
Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• Thai banks lift rates
• New line strains Thai Mitsubishi
• Hanoi banks target capital increase
• HCM City promises to help businesses
Asean Analysis    14 January 2011 Advertise Your Brand
• World Bank’s 2011 economic outlook Sponsor Our Events
Asean Stock Watch    14 January 2011
• ASEAN Market Outlook
Global News Impacting Asia    17 November 2010
• Bank of America sees Asian inflation
• Lloyd’s increases insurance push in Malaysia
• Wells Fargo analyst on euro
• Obama’s visit to Asia

ASEAN NEWS UPDATES      Updated: 04 January 2011

• Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore
• Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline
• Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2020 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand