Domestic flight operators confirmed that they have submitted applications to raise ticket prices as they have not been changed for 26 years.
The nation’s two domestic flight carriers — Uni Air (立榮航空) and Mandarin Airlines (華信航空) — urged the Civil Aviation Administration (CAA) to consider their requests to raise ticket prices at a seminar on aviation safety management system in Taipei yesterday.
The aviation authority calculates upper and lower limits of airfares for domestic flights based on 14 cost items submitted by domestic carriers.
Photo: Wu Liang-yi, Taipei Times
Since 2014, the agency has also allowed airlines to flexibly adjust airfares based on changes in the fuel surcharge, which is one of the 14 items.
Uni Air vice president Chen Yong-yu (陳永裕) said that the domestic airfare adjustment mechanism has not been updated for 26 years.
Although ticket prices can be adjusted based on the fuel surcharge, the other 13 cost items remain at their 26-year-old values, Chen said.
With rising labor and maintenance costs, airlines have been trying to optimize efficiency and cut costs, but they still hope that ticket prices can adequately reflect expenses, Chen said.
Mandarin Airlines general manager Chuang Ming-che (莊明哲) said that it has acquired nine new aircraft to replace older ones, while Uni Air has purchased 19.
Airfares would inevitably increase as both carriers have incurred high costs after upgrading aircraft and paying higher salaries to employees, Chuang said, adding that airlines need sufficient revenue to invest in new aircraft to ensure continued safety improvements.
Chuang said that while they do not want passengers to bear an excessive burden, a reasonable fare increase is necessary to maintain a positive cycle.
He added that there are more than a dozen items affecting ticket prices and the CAA is reviewing which cost components have increased.
The CAA said that it would comprehensively evaluate the airlines’ requests, taking into account operating costs, transportation needs to outlying islands and the interests of residents of the islands.
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