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Passenger service charge and air navigation fees at Civil Aviation Authority of the Philippines-operated airports will be reduced
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This is part of measures to help alleviate the effects of rising fuel prices on air passengers and on airlines
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Fuel surcharges will now be monitored and implemented every 15 days instead of the current 30 days, allowing airlines to more frequently reflect jet fuel price changes in fares
Transport acting Secretary Giovanni Lopez ordered the reduction of passenger service charge (PSC) and air navigation fees at Civil Aviation Authority of the Philippines (CAAP)-operated airports as part of measures to alleviate effects of rising fuel prices on air passengers and airlines.
CAAP operates more than 40 commercial airports, excluding the major hubs in Manila, Clark, Cebu, and Caticlan.
The Civil Aeronautics Board’s (CAB) evaluation and implementation period for fuel surcharges will also be shortened to every 15 days instead of the current 30 days in order for airlines to more frequently reflect changes in jet fuel prices in their fares, the Department of Transportation (DOTr) said in a statement.
READ: Airfares steady as CAB keeps fuel surcharge unchanged in March
DOTr noted that based on its latest monitoring, jet fuel prices has almost doubled to US$188.2 per barrel as of March 9 from $90.87 per barrel on February 19.
Under CAB Resolution No. 25, airlines can choose to charge a fuel surcharge for passenger and cargo as an optional fee to cover rising fuel expenses and prevent financial losses during fuel price spikes. The implementation of the surcharge is subject to application with CAB and is limited to the level of surcharge that is approved by the board for the period.
DOTr said it continuously monitors the situation and coordinates with the aviation industry to ensure that air travel is safe, reliable, and affordable for the public.
For sea transport, the Maritime Industry Authority earlier issued its contingency measures to address the impact of the ongoing Middle East crisis on the maritime industry.
READ: Domestic shipping operators pass on extra fuel cost to customers
