MAS drops fuel surcharge

PETALING JAYA: Malaysia Airlines (MAS) will remove fuel surcharge for domestic travel in Malaysia starting today.

Its managing director and chief executive officer Datuk Seri Idris Jala said the decision was made based on the drop in fuel prices, competitive pressures and the need to boost air travel during the current economic slowdown.

We have always offered competitive fares that are benchmarked against our competitors on a route-by-route basis. Our stand is the total amount that the customer pays must be competitive, whether it is the fares alone or fares in combination with the fuel surcharge, he said in a statement here yesterday.

Idris said the removal of the fuel surcharge would see more competitive prices for the MH Value Fares that offered four fare options for economy class travel, with discounts of between 20% and 70% being offered.

For international travel, MAS had earlier reduced fuel surcharge for travel from Malaysia to South Korea, Japan, France, Hong Kong and Singapore, and from other points of sales to various destinations, he said.

In markets where other carriers are the major players, we will follow if they drop the surcharge. In markets where we lead, we will evaluate the customer demand against the supply, Idris said, adding that despite the recent drop in oil price, MAS fuel costs were still higher compared with when the surcharge was first introduced in 2004.

The Star