Surcharge not affecting MAS passengers

ALOR STAR: Malaysia Airlines (MAS) is still competitive for international routes despite the upward revision of the surcharge for the international sector, Transport Minister Datuk Seri Chan Kong Choy said Thursday.

He said the revised surcharge was still lower than the rates levied by other international carriers.

"MAS will not suffer a slide in passenger load as the people will have to use flights to go to another country. Furthermore, the surcharge rates are still low compared to other airlines," he told reporters after performing the groundbreaking for construction of a hostel of a Chinese private school, here.

MAS announced revised surcharge rates for international flights effective Wednesday following spiralling jet fuel prices. The surcharge for domestic flights remain.

The surcharge for passengers flying to Europe, Australia, New Zealand, North and South America, West Asia and Africa has been increased to US$32 (RM122) from US$28 (RM106) while to Asia to US$16 (RM61) from US$14 (RM53).

This is the third time MAS was raising the surcharge. Chan said the Government allowed MAS to review the surcharge when crude palm oil prices in the world market surpassed RM69 per barrel.

"If the fuel prices escalate further and MAS wants to review the surcharge, it needs approval of the Government, the main stakeholder of the national carrier," he said.

He said while fuel price hikes had burdened the airline, the surcharge imposed by MAS could only meet less than half of the overall fuel costs borne by the airline. For budget airline AirAsia, he said, the carrier could raise the surcharge without government approval.

Courtesy of: Bernama