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ANA to reduce international fuel surcharge benefitting long-haul holidays

Affecting the routes they serve all around the world including Europe, North America and the Indian Ocean, ANA, the Japanese carrier is to reduce international fuel charges across all of its long-haul holiday destinations.

ANA to reduce international fuel surcharge benefitting long-haul holidays

ANA, the Japanese carrier, recently applied to the Ministry of Land, Infrastructure, Transport and Tourism to reduce its fuel surcharge on international flights from 1st October, 2010, thus enabling cheaper Caribbean holidays for Japanese travellers, as well as cheaper holidays in the Indian Ocean and North America. Making it easier for Japanese holidaymakers to plan for long-haul holidays across many world holiday destinations; the fuel surcharges are fixed for a period of two months, after which it will be revised on the basis of the average market price of Singapore kerosene for the two months previous to the date of application for revision. As jet fuel fell to an average of US$86.21 per barrel from June to July 2010, the surcharge will be fixed in the way explained below.

Surcharge Levels (per person per single sector):

  • Europe, North America and Middle East to be reduced from 14,000 (Japan yens) to 10,500 beginning October, 2010
  • Hawai and India to be reduced from 8500 (Japan yens) to 6000 beginning October, 2010
  • Thailand, Singapor and Malaysia to be reduced from 6500 (Japan yens) to 4500 beginning October, 2010
  • Vietnam and Saipan to be reduced from 4000 (Japan yens) to 3000 beginning October, 2010
  • Hong Kong, Taiwan and China to be reduced from 3500 (Japan yens) to 2500 beginning October, 2010
  • Korea to be reduced from 1000 (Japan yens) to 500 beginning October, 2010

Conditions for Revision (and removal) of the Surcharge :

  1. The fuel surcharge will not be revised for the two months from 1st October to 30th November, 2010 regardless of market movements. The levels stated are subject to government approval.
  2. The level of the fuel surcharge from December 1, 2010 will be fixed based on the average market price of Singapore kerosene for the months of August and September.
  3. If the two months average cost of Singapore kerosene falls below US$60 per barrel, the fuel surcharge will be removed altogether.

This could mark a brighter near future for tour operators and those in the travel business as it enables them to work with cheaper air fares and thus create more competitive products and packages in far-off destinations like Caribbean holidays, for example.

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