******************************************************
Following is a question by the Hon Paul Tse and a written reply by the Secretary for Transport and Housing, Ms Eva Cheng, at the Legislative Council meeting today (October 21):
Question:
At present, travel agents, in selling air tickets, are required to collect fuel surcharges and air passenger departure tax ("APDT") on behalf of airlines. However, the airlines do not pay the relevant commission or administrative fee to travel agents. In this connection, will the Government inform this Council whether:
(a) the Civil Aviation Department will, in vetting and approving applications submitted by airlines for adjusting fuel surcharges, require the airlines to bear the expenses incurred by travel agents in collecting fuel surcharges on their behalf when selling air tickets; if it will, when the relevant measure can be implemented; if not, of the justifications for that; and
(b) the Government will directly pay travel agents the expenses incurred in collecting APDT on its behalf, or adopt appropriate measures to make the airlines concerned pay such expenses; if it will, when the measure can be implemented; if not, of the justifications for that?
Reply:
President,
The Transport and Housing Bureau, and the Financial Services and Treasury Bureau have policy responsibilities over aviation fuel surcharges and APDT respectively. Our consolidated reply is as follows:
(a) Fuel surcharges are a type of aviation tariff which allow airlines to partially recover the increase in operating costs due to fluctuations in aviation fuel prices. As an aeronautical authority in Hong Kong, the Civil Aviation Department considers and approves fuel surcharge applications from the airlines in accordance with bilateral Air Services Agreements. The commercial arrangements on the collection of fuel surcharges and the remuneration involved or the sharing of the relevant costs should be a matter between the airlines and travel agents.
(b) Under the Air Passenger Departure Tax Ordinance (Cap 140), the airlines are responsible for collecting APDT from departing passengers on behalf of the Government. At present, the Government pays an administration fee for the airlines to meet the costs of providing the service. As the airlines have direct and full access to departure figures, we consider the existing arrangements appropriate and effective. The Government will not interfere with the commercial arrangements between the airlines and travel agents.
Ends/Wednesday, October 21, 2009
Issued at HKT 15:41
NNNN
