China’s three largest airlines have called for the reintroduction of fuel surcharges on domestic routes in response to rising oil prices, South China Morning Post reported. The joint application was filed by China Southern Airlines, China Eastern Airlines and Air China on 10 July to the National Development and Reform Commission.
Wang Jianjun, managing director of China Southern’s finance department, said that because of the price increase, the carrier faced paying Rmb2.24bn more for jet fuel in the second half of 2009. Surcharges, which could be partially passed on to passengers, might help alleviate the problem but analysts believe the action might stifle demand for air travel. The idea of a fuel surcharge was rejected by the government in January.