Committed to PEOPLE'S RIGHT TO KNOW
Vol. 5 Num 101 Fri. September 03, 2004  
   
Front Page


Air travel cost rises on back of fuel hike


Air travelling is getting costlier with most carriers raising fuel surcharge on back of jet fuel price hike on the international market.

Most airlines operating from Bangladesh, including national carrier Biman Bangladesh Airlines, have either raised fuel surcharge or plan to do the same soon.

Biman, which introduced a $5 fuel surcharge last month, now plans to further raise the charge as the price of a litre jet fuel soared from 29 cents to 34 cents in Dhaka last month.

Leading foreign players in Bangladesh -- Singapore Airlines, British Airways, Emirates, Thai Airways, Malaysia Airlines and Indian Airlines -- have already introduced or hiked fuel surcharge.

Emirates added $10 more to its existing fuel surcharge of $5, Singapore Airlines added $5 to $12, British Airways $9.25 to $22 (return) on per stoppage on Wednesday.

Malaysia Airlines introduced $10 and Thai Airways $7 fuel surcharges in June and Indian Airlines introduced $5 on August 1. The airlines now plan further rise in the surcharges.

High officials of leading foreign airlines said fuel surcharge was not only applicable to passengers from Bangladesh, but to all across the world.

An official of Singapore Airlines said it introduced a $5 surcharge on June 7 and the rising fuel price pushed it to $12.

KL Chandolia, manager of Bangladesh operations of Indian Airlines, said the airlines copied the national carriers of other countries in introducing the surcharge.

"As Biman has introduced a $5 fuel surcharge, we also applied it to our Bangladesh operations. If Biman further raises it, we will follow suit," he told The Daily Star yesterday.

Biman Managing Director Mahmoodur Rahman yesterday said it has plan to further increase fuel surcharge because of rising prices. "We will soon sit with the energy ministry and take a decision on further rise. We definitely need to increase the surcharge to cope with soaring oil prices on the international market."

Biman's 15-member fleet consumes about 10,000 tonnes of jet fuel costing the national carrier Tk 23 crore a month. Foreign airlines also buy about 12,000 tonnes a month from Padma Oil.

Padma Oil, a subsidiary of state-run Bangladesh Petroleum Corporation, hiked jet fuel price from 29 cents to 34 cents at Dhaka airport depot and from 28 cents to 33 cents at Chittagong airport depot from August 10.

Sources said Saudi Arabian Airlines, Kuwait Airlines, Gulf Airlines, Qatar Airways and Iran Air currently have no plan to introduce fuel surcharge as the national flag carriers of the oil-rich countries get fuel at subsidised prices.