Philippines Outlaws Fuel Surcharges

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Philippines has taken the right direction and banned fuel surcharges on a resolution issued by the House of Representatives on January 8, 2015.

Philippines Fuel Surcharges

Airlines have long played with the fuel surcharges and, as a matter of fact, they are often now called “carrier surcharges”, as they have very little, if anything, to do with the price of the oil.

READ MORE: Why All Inclusive Fare Advertising is Required in Asia: Case Cebu Pacific

You can read more about this development on the Philippine Flight Network website here and below is an excerpt from the piece:

On January 8, the House of Representatives issued a resolution ordering airlines operating in the Philippines to remove their fuel surcharge from airfares. The fuel surcharge was a measure implemented by the Civil Aeronautics Board to enable carriers to offset rising fuel prices.

After the resolution was issued, the country’s main airlines each issued statements confirming compliance with the directive:

“Cebu Pacific has complied with the Civil Aeronautics Board resolution and has implemented removal of fuel surcharges effective January 9,” said Jorenz Tanada, Cebu Pacific’s Vice President for Corporate Affairs. Meanwhile, AirAsia Zest CEO confirmed in a text message that the surcharge would be removed from their airfares.

The country’s flag carrier, Philippine Airlines, stated that it would remove the fuel surcharge on its flights effective January 10. In a statement released to media, PAL stated that, “This is to comply with a Civil Aeronautics Board directive calling on all air carriers operating in the country to desist from charging its passengers fuel surcharge in view of declining crude prices.”

Conclusion

All the governments should follow Brazil and the Philippines and outlaw these fake surcharges from airfares.

Airlines instituted them because negotiated discounts are not calculated from them, travel agents are not paid commissions for the amount of surcharges and many airlines collect these on award tickets issued for loyalty program members.

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