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CAB to hear PAL fuel surcharge petition

By Louella Desiderio | The Philippine Star

MANILA, Philippines — The Civil Aeronautics Board (CAB) is set to hold a hearing on the petition of flag carrier Philippine Airlines (PAL) and sister carrier PAL Express to impose a fuel surcharge amounting to P158 up to P405 on domestic flights next month.

A regulatory filing showed PAL and PAL Express are seeking to impose fuel surcharge for domestic flights.

In particular, PAL and PAL Express want to impose fuel surcharge for each way for flights from Luzon to Luzon or Visayas (P282); Luzon to Mindanao (P405); Visayas to Visayas (P158); and Mindanao to Visayas or Mindanao (P222).

The case is scheduled for hearing on July 10.

While PAL filed a petition with the CAB last December to impose fuel surcharge worth P51 to P207 to recover higher costs of fuel, company president and chief operating officer Jaime Bautista said earlier the carrier would update the figure and amend its petition as fuel prices continued to rise.

He said the price of fuel rose by $13 from January to April.

As PAL is set to consume 11 million barrels of fuel this year, the $13 increase in fuel price would result in $143 million worth of additional cost to the carrier.  

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