Higher Prices as Flexible Response to Market Changes
ANA to reinstate international passenger fuel surcharge for October – November 2009
ANA today applied to the Ministry of Land Infrastructure, Transport and Tourism of Japan to reinstate its fuel surcharge on international flights from October 1 this year.
The fuel surcharge was abolished at the end of June in line with falling fuel prices. Since then, however, they have steadily risen above the average US$60 per barrel threshold for Singapore kerosene, as reported by the US Department of Energy, and ANA regrets that it must again ask its customers to share the increasing burden.
Although the surcharge will be set at previous levels, it will be fixed for a period of two months, rather than three, in order to allow a more flexible response to market changes. At the end of the two month period, it will be revised on the basis of the average market price of Singapore kerosene for the two months previous to the month of application for revision. Jet fuel rose to an average of US$74.5 per barrel for June and July this year, accordingly the following surcharge levels will apply:
Fuel Surcharge Levels (per person per single sector)
Routing: Japan to | Surcharge Oct 1 – Nov 30, 2009 |
Europe, N.America (not Hawaii), Middle East | US$ 69 (7,000 yen) |
Hawaii, India | US$ 39 (4,000 yen) |
Thailand, Singapore, Malaysia | US$ 30 (3,000 yen) |
Vietnam, Saipan | US$ 20 (2,000 yen) |
Hong Kong, Taiwan, China | US$ 15 (1,500 yen) |
Korea | US$ 3 (300 yen) |
Conditions for Revision (and Removal) of the Surcharge:
(1) The fuel surcharge will apply for the two months from October 1 to November 30, 2009 regardless of movements in the kerosene market. The levels stated are subject to government approval.
(2) The next revision of the fuel surcharge will be announced in October, in accordance with the chart below, and will apply to tickets issued on or after December 1, 2009, based on the average cost of Singapore kerosene for August and September. Should this fall below US$60 per barrel, the fuel surcharge will be removed altogether.