Virgin Blue fuel surcharge to remain steady

Thursday, 02 May, 2006 0

Virgin Blue announced its decision today not to introduce an across the board fuel surcharge, and instead will review its air fares on a route by route, case by case basis.

Virgin Blue operates over 300 flights daily to 22 Australian and eight overseas destinations.

The airline has resisted increasing its fuel levy since April 2005.

The decision comes in the wake of escalating jet fuel prices which have reached record highs.

Virgin Blue Chief Executive Brett Godfrey said:

“Unrelenting rises in fuel prices are a challenge for the aviation industry globally and Virgin Blue is not immune. However as an airline which offers consistently lower fares we try to bear the burden of cost increases as long as possible,” he said.

“While it’s a fact of life that invariably prices do increase, we don’t feel passing on these costs through a flat rate fuel surcharge is necessarily the ideal solution,” he said.

“Instead we will take a detailed look route by route, and will increase fares in accordance with their market dynamics,” he said.

In conjunction with its decision, Virgin Blue today announced a special network wide sale to allow travellers to get in early prior to the introduction of even minor fare changes.

The discounted fares are on sale from tomorrow Tuesday 1 May until midnight Thursday 4 May and are for flights taken between the dates of 13 May to 11 June inclusive.

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Graham Muldoon

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