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All Nippon Airways applies to cut fuel surcharge

16-Feb-2007

Tokyo (XFN-ASIA) - Japan's second-largest carrier All Nippon

Airways Co Ltd (ANA) said it plans to join rival Japan Airlines Co Ltd in reducing

a fuel surcharge on tickets due to falling oil costs.

ANA said it plans to cut its surcharge on most international routes from April 1, contingent on government approval.

The surcharge varies per route. For routes between Japan and North America or Europe, ANA will lower the surcharge to 12,000 yen from 13,000 yen per flight.

A company statement said it made the decision because the price of Singapore kerosene had remained below 75 usd a barrel for 30 straight days.

"The fuel surcharge will be discontinued completely if the market price drops below 40 usd per barrel for 30 consecutive days," it said.

However, ANA said it will more than triple its surcharge on flights between Japan and Hong Kong from 1,600 to 5,200 yen, saying the earlier fuel surcharge had been undervalued.

Rival Japan Airlines (JAL) announced similar surcharge adjustments on Tuesday.

The two Japanese carriers first imposed an oil surcharge in February 2005, complaining that high global oil prices were hitting them hard.

ANA, however, has been growing and reported record net profit for the nine months to December on strong demand, amid a recovery in the Japanese economy.

JAL, by contrast, has continued to face sluggish demand and earlier this month said it would cut a further 4,300 jobs.


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