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Emirates hikes fuel surcharge, more to follow
By Patrick Michael (Deputy Editor)

6 September 2005
DUBAI — Taking the cue from Thai Airways, other airlines too have jumped on to the bandwagon and announced an increase in fuel surcharge yesterday.

Emirates airline yesterday announced that they too would be slapping a fuel surcharge on passengers. The award-winning airline will start applying additional fuel surcharges on tickets issued in Dubai, effective September 14. For all Emirates destinations, there will be a fuel surcharge of Dh160 for one-way and Dh320 for return trips, the only exceptions being Amman,  Beirut and Dammam which will be Dh130 for one way and Dh250 on return fares, Emirates airline said in a statement issued to your favourite No. 1 newspaper, Khaleej Times.

For Osaka, it will be Dh180 for one way and Dh360 on return fares. On tickets booked from destinations across its network, Emirates is levying an average fuel surcharge of $45 for one-way travel and $90 on return tickets. “In order to minimise and delay the need to increase the fuel surcharges, Emirates has spared no effort to offset the negative impact of the huge escalation in jet fuel prices through stringent cost-containment measures across its operations. These measures, though effective, have proved insufficient, leaving us no alternative but to revise the fuel surcharges,” said the airline in its statement.

Cathay Pacific too has raised its fuel surcharge following the rise in oil prices and the consequent rise of jet fuel prices. The airline’s last revision on fuel surcharge took place on August 1. “We regularly review the impact of increase in fuel prices and the fuel surcharge which is already in place will be reviewed again this month,” said James Evans, the airline’s Country Manager for UAE and Oman.

Several other airlines are expected to follow suit following the sharp increase in petrol prices all over the world.

“To date, Gulf Air has worked hard to minimise the impact of the cost of fuel on the total cost of travel to the customer. Most of the cost has been borne by the airline, which has mitigated its exposure to fuel by implementing cost saving initiatives across the airline. However, given the unprecedented price of oil, it is necessary to take further measures including the imposition of a fuel surcharge to recover some of this expenditure,” Gulf Air President and Chief Executive James Hogan told Khaleej Times.

“We believe the consistent and systematic imposition of fuel surcharges across the respective markets will, although they account for only a proportion of the increased fuel cost, alleviate the considerable burden this has placed on our commercial operation. “However, Gulf Air will be led by market practice and will, subject to continual review, follow the policy and practice of national carriers across its network, levying fuel charges that match those of national carriers in each of the markets in which it operates,” he added.

British Airways too is keeping a close watch of fuel prices and may well join other airlines in raising its fuel surcharge. “We keep the price of fuel under constant review and are monitoring the situation. We will adjust surcharge levels where and when we feel it is appropriate to do so,” said Deborah Frampton, British Airways’ Manager for the UAE.

A source at the Indian Airlines told Khaleej Times that the airline was watching the situation as it develops, and would decide on the fuel surcharge issue after taking into consideration similar moves by other airlines. “As of now, they are still considering the issue and have chosen to wait and watch; a decision on the surcharge should however be out by tomorrow,” the source said.

Top officials at the airline were not available immediately for comment. Speaking to Khaleej Times earlier on the issue, an official said that the airline could not announce a fuel surcharge unilaterally and would rather wait for a decision on the issue at a soon-to-be-held meeting of the Board of Airlines in the emirate. Officials at Air India have been tight-lipped on the issue since the fuel hike was announced. The airline’s officials were unavailable for comment till late last evening.
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