Japan Airlines and All Nippon Airways on Thursday requested approval from the Ministry of Land, Infrastructure, Transport and Tourism (MLIT), to remove the fuel surcharge placed on all international passenger tickets from July 1.
JAL originally introduced the fuel surcharge on international tickets in February 2005 in response to rises in the cost of jet fuel at that time. The surcharge was progressively reduced when the price of fuel decreased, and as the price of Singapore kerosene has stayed below the benchmark of $60 per barrel, at $55.08 per barrel, for a consecutive period of 3 months from February 2009 to April 2009, the fuel surcharge for international tickets issued between July 1 and September 30, 2009, will be removed, both airlines said.
The fuel surcharge for tickets issued from October to December 2009 will be reviewed based on the average price of fuel for the 3-month period of May through to July, 2009.
© Japan Today
11 Comments
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pointofview
This is called "In Your Face Corruption." They do it because they can and despite all the complaining the airlines will roll whichever way want. People are still flying aren`t they? We have a lot of choices but very little say in the matter.
VoXman
Its called price gouging. The other airlines reduced or removed their entirely months ago........some free enterprise they have here.
Pukey2
I don't know how much the surcharge is for JAL or ANA now, but British Airways has to be one of the worst. They are still charging 66 pounds for a one way trip from UK, longhaul. When I asked them when they would update the surcharge (most airlines significantly reduced surcharges or abolished them earlier this year), they fobbed me off, saying that they reduced it late last year. And Virgin never explained why the surcharge went down for UK->Japan flights, but went UP for Japan->UK fights.
motytrah
Basically ANA and JAL messed up and hedged fuel at much higher rates than market for a very long time. They aren't he only airline to do it, but it's put a real pinch on them.
You have to realize the largest holders of oil contracts in the world isn't an oil company, it's large international banks. Which is how supply can go up, demand can go down, yet fuel prices keeps getting higher.
I can't fund any public information in English on what JAL hedged fuel at, but some Airlines were hedging fuel 50+% of their fuel at $85+/barrel well into 2009. The third largest carrier in Japan, Northwest Airlines (Now Delta) for the most part is paying market prices or less, and has some attractive fare prices.
realist
JAL and ANA = rip-off merchants. They ripped me off twoce this year, bit never again. The very fact they are waiting until July to abolish this disgraceful charge shows them to be money-grabbing people who couldnt care less about their customers. Oh - and the food on JAL flights sucks, big time.
larguero
So, basically, now that the fuel is at $55, they are making 150-300$ extra out of each ticket charging something they shouldnt be charging. Cut the surcharge now.
30061015
What took them so long?
Sarge
"requested approval from the Ministry of Land, Infrastructure, Transport and Tourism ( MLIT ) to remove the fuel surcharge"
If I were in charge of MLIT, I'd say, what are you askin' me for? If you can make a profit without charging the fuel surcharge, go for it!
Okinawamike
Can someone reccomend a nice influenza free part of the world?
Yep, Okinawa, we are flu free!
gaijintraveller
We all know that the fuel surcharge has been a huge scam. Since pump prices for petrol are what they were back the the 1970s, I can only assume that other fractions of petroleum are also back to 70s prices. As JAL and ANA seem to have to ask the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) permission to drop the charge, is it fair to assume the ministry is working in collusion with the airlines in this scam?
I suppose those working at the ministry have to think about their future and prepare for retirement. No doubt some will get jobs JAL or ANA.
Elbuda Mexicano
Great! I can't wait to go to a Swine flu free destination without the fuel surcharges! Can someone reccomend a nice influenza free part of the world?