Airline companies are preparing to file an application for another rise in fuel surcharges after the National Development and Reform Commission (NDRC) announced a fuel hike on June 20, the Beijing Business Today reported Monday, citing unknown sources.

“It’s normal for airlines to apply for an appropriate rise in fuel surcharges after jet fuel prices have gone up,” said Luo Zhuping, Company Secretary of China Eastern Airline.

“However, the rise in fuel surcharges won’t be a significant one, because China’s oil prices are still lower than those on the international market,” Luo added.

Luo said that the airline companies would take their passengers’ pocketbooks into consideration and more discounts may appear on flight tickets in the future.

Although the NDRC has vowed to control any possible domino effects resulting from price hikes of major oil products, it didn’t rule out raising reasonable fuel surcharges by airline companies.

In the official statement released by the NDRC, civil aviation industry fuel surcharges could be raised by an appropriate amount after the airline companies have absorbed part of the costs.

Regarding details of the proposed fuel surcharge hike, there are two rumors: one projects that fuel surcharges for distances under 800 km would be raised from 60 yuan to 80 yuan, while those over 800 km would be raised from 100 yuan to 130 yuan. Another scenario speculates that fuel surcharges for distance under 800 km will be raised from 60 yuan to 100 yuan and those over 800 km from 100 yuan to 150 yuan.

The price hike is expected to go into effect on July 1.

For more details, please read the full story in Chinese

(http://www.bbtnews.com.cn/mainland/channel/49864.shtml)

(China.org.cn by Yan Pei, June 23, 2008)