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MAS Increases Fuel Surcharge

Posted on: Monday, 12 September 2005, 00:00 CDT

MALAYSIAN Airline System Bhd (MAS) yesterday moved to address rising fuel

costs, raising fuel surcharges on overseas flights for the third time

this year.

The national airline has also asked the Government to allow it further

increases if jet fuel prices continue to rise.

This comes a day after the carrier named Idris Jala, an executive with

oil company Shell, as its new boss to help turn things around after a

heavy first-quarter loss.

MAS said it was compelled to further increase its fuel surcharge on

ticket prices by as much as 14 per cent from September 14 to help offset

higher jet fuel prices. The last increase was in July.

Analysts had said that MAS' surcharges were insufficient to cover the

jump in fuel cost. On long-haul flights, what MAS charges is about half

those imposed by other major airlines, they pointed out.

"The steep escalations of jet fuel prices, which have hit an all- time

high, are putting tremendous pressure on airlines worldwide to manage

cost," MAS said in a statement released in Kuala Lumpur yesterday.

"Measures are being taken to mitigate this escalating increase

including adjusting the fuel surcharge rates," it added.

It joins other carriers such as Qantas Airways Ltd and Singapore

Airlines Ltd, which have already announced an increase to their existing

fuel surcharges.

MAS said the fuel surcharge for flights between Malaysia and Europe,

Australia, New Zealand, North and South America, West Asia and Africa

will be raised to US$32 (US$1 = RM3.77) per sector from US$28 currently.

Meanwhile, the surcharge on regional flights will be raised to US$16

per sector from US$14 currently, while the revised surcharge to Singapore

will be US$15 per sector from the current US$14. This will take effect

from September 21.

The fuel surcharge for flights between Peninsular Malaysia and Sabah

and Sarawak, however, will remain unchanged at RM15 and for travel within

Peninsular Malaysia and Sabah and Sarawak, including rural air services

at RM7.50.

Source: Business Times; Kuala Lumpur

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