The nation's aviation regulator last night approved applications by domestic airlines to raise fares on domestic routes to cover rising fuel costs. The hikes, ranging from 2.7 percent to 6.9 percent, will become effective on June 1.
According to a tally of new rates revealed by Civil Aeronautics Administration (CAA), four airlines applied for an increase of five percent to six percent on airfares.
One-way fare hikes
Far Eastern Air Transport Corp, for instance, increased one-way fares on its Taipei-Kaohsiung route to NT$2,124 from NT$2,021, while TransAsia Airways planned to increase one-way fares on its Taipei-Tainan route to NT$1,846 from NT$1,730.
Fares on domestic routes hadn't been adjusted for about five years. The Ministry of Transportation and Communications made its last adjustment at the end of 1999.
Soaring fuel costs
Operation costs for domestic airlines are soaring, especially the cost of jet fuel expense, which airlines expect will account for about 15 percent to 20 percent of their total costs. These costs are contingent on what type of aircraft an air carrier uses and what routes they offer to travelers, officials said.
The fuel price charged by Chinese Petroleum Corp has increased six percent to NT$13.62 per liter on average last year from NT$8.56 per liter in 1999.
Customers who brought air tickets before June 1 and plan to use the tickets in June are not required to pay extra, the CAA said.
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