MAS removes fuel surcharge on domestic travel

SUBANG: Malaysia Airlines (MAS) will remove its domestic fuel surcharge for travel in Malaysia effective Wednesday, Jan 14.

It decided this after taking into account the decline in fuel prices, competitive pressures and the need to boost air travel during this period of economic slowdown.

“Today’s move is in line with the competition, ensuring even more competitive pricing,” MAS managing director and chief executive officer Datuk Sri Idris Jala said in a statement here Tuesday.

“Our stand is the total amount that the customer pays must be competitive, whether it’s the fares alone or fares in combination with the fuel surcharge. It’s the total sum of the parts that matters.”

The removal of the fuel surcharge will see more competitive prices for MH Value Fares which offers four fare options for economy class travel – MHlow, MHbasic, MHsmart and MHflex.
“There will be more value travelling with Malaysia Airlines as on top of the removal of the fuel surcharge, the fare options offer discounts off the fares - MHlow up to 70% discount, MHbasic, up to 50%; and MHsmart, up to 20%,” Idris said.

For international travel, MAS had earlier reduced fuel surcharges for travel from Malaysia to Korea, Japan, Paris, Hong Kong and Singapore, and from other points of sales to various destinations.

“We are always reviewing the surcharge as we continue to benchmark the international fuel surcharge against our competitors. 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 customer demand versus supply,” he added.

Despite recent falls in oil price, MAS said its fuel costs are still higher compared with when the surcharges were first introduced in 2004.

“The fuel surcharge only covers about 30% of the fuel cost,” Idris said.