DOTr open to allowing airlines to impose fuel surcharge

The Department of Transportation (DOTr) will soon be allowing airline companies to impose a fuel surcharge to help ease the impact on its business of the rising petroleum prices.

In a recent interview, Transportation Undersecretary for Aviation Antonio Tamayo said the Civil Aviations Board is now in talks with local carriers on coming up with a fare matrix scheme in relation to adjusting fuel surcharges.

"Ang gusto kasi ni Secretary [Arthur Tugade] at ng economic managers is to have the template. With this template, if there would be any fluctuations on fuel, 'di na kailangan bumalik samin for permission," Tamayo said.

"I-adjust niyo na lang based on the template. Kung tumaas, eh di itaas niyo, kung bumaba, ibaba niyo rin," he added.

Tamayo said local carriers Philippine Airlines and Cebu Pacific have their proposed fare matrix schemes in relation to its petition to impose surcharges due to rising cost of fuel.???

"They have proposed. I have talked to Philippine Airlines already last week and Cebu Pacific, they're supposed to present to me the matrix," he said.

"Actually ipe-present nila sa CAB (Civil Aviations Board)... kinukuha lang namin yung inputs ng iba, dapat stakeholders kasi."

The Transport official said the surcharge will help airline companies offset losses incurred from higher fuel costs. He said that the absence of a cost recovery scheme might prompt carriers to cancel flights in several routes "where they are losing money."

In 2017, PAL incurred a comprehensive net loss of $129 million or P6.9 billion) due to cost of fuel.

Likewise, Cebu Air Inc.’s net dropped by 18.9 percent to P7.91 billion in 2017 from P9.75 billion in 2016, citing increases in fuel prices and operating expenses. —KBK, GMA News