Domestic air ticket prices will probably increase 15 percent to 20 percent because of soaring oil prices, Civil Aeronautics Administration (CAA) Director-General Chang Kuo-cheng (張國政) said yesterday.
"I predict domestic air ticket prices will increase 15 to 20 percent, but the CAA has yet to convene a meeting to make the final decision," Chang said.
Chang said domestic air ticket prices will not increase 30 percent as has been reported in the media, Chang said .
Chang said media reports of the hike were groundless and that the agency has not even met to review proposals by airlines to raise their ticket prices.
Chang made the remarks during a meeting with a group of People First Party legislators.
Besides the possible hike in ticket prices, the legislators were also concerned about the government's plan to build more airports.
They questioned the necessity of these projects, when airlines are expected to lose many of their passengers to the cheaper high-speed railway after it opens next year. Although admitting that as many as 15 of the 18 airports are operating at a loss, Chang said they must be kept open to serve the transportation needs of local residents.
Chang also said he did not agree with any plan to build additional airports, a proposal routinely offered by many presidential candidates.
Meanwhile, Consumers' Foundation Secretary-General Cheng Jen-hung (程仁宏) said the foundation will ask the Fair Trade Commission to look into the airlines' plans to raise ticket prices and demand that the companies cut prices should oil prices fall.
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