Wednesday, December 15, 2010

BA increases fuel surcharge; move will hurt Caribbean tourism sector

British Airways (BA) is increasing its fuel surcharge on long haul services from Thursday by an additional £10 (US $15.86) per sector, which means travellers to the Caribbean will have to pay an additional £20 (US $31.71) for a return fare.

The airline said Tuesday it had to increase the cost due to substantial increases in fuel charges.

The increased fuel surcharge and the airport passenger duty (APD) implemented by the British government in November, will continue to hurt the region. 

Return travelers to the Caribbean from the United Kingdom would face an additional minimum surcharge from from a low of £126 (US $199.77) to a high of £216 (US $342.47), depending on which class they choose for their travel.

The announcement coincided with a warning from the International Air Transport Association (IATA) that higher fuel costs would be the biggest challenge for airlines in 2011.

IATA noted Tuesday that the price of jet fuel is currently 17.6% higher than a year ago and had risen by almost 5% in the past month. IATA forecasts that the average oil price in 2011 would be US$84, up from US$79 this year.

The added cost will put the Caribbean tourism industry at an unfair disadvantage as British Airways since the surcharge doesn't apply to BA's shorthaul services.

Caribbean governments have lobbied London to drop the APD but despite promises to reconsider it, the British government has left it in place.

British Airways had supported the lobbying efforts against the APD stating that it would seriously hurt the aviation industry that supports more than 500,000 jobs in the UK and "provides the transport links that are vital to the success of UK businesses in a globalised economy. Excessive taxation puts aviation’s social and economic benefits at risk.”

British Airways has more direct Caribbean services than any other European airline with 64 weekly flights to 15 destinations. Next summer it plans to increase flights from Gatwick to Barbados and Antigua and between St Lucia and Port of Spain.

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Jai & Sero

Jai & Sero

Our family at home in Toronto 2008

Our family at home in Toronto 2008
Amit, Heather, Fuzz, Aj, Jiv, Shiva, Rampa, Sero, Jai