Middle East war impacts aviation, statistics show

• By Sam Garcia and Jake Chung / Staff writers, with CNA

Fuel prices for international flights have increased by 122 percent since the war in the Middle East began, leading to about 1.7 percent of flights being canceled next month, data from CPC Corp, Taiwan and the Civil Aviation Administration (CAA) showed yesterday.

The Legislative Yuan’s Transportation Committee yesterday invited Minister of Transportation and Communications Chen Shih-kai (陳世凱) to present on the government’s response to the war in the Middle East and rising gasoline prices.

As of April 1, fuel prices for international flights had reached US$1.2816 per liter, an increase of 122 percent compared with pre-Iran war levels, the Ministry of Transportation and Communications said, citing data from CPC Corp.

Fuel prices for domestic flights had risen to NT$44.2 (US$1.4) per liter, up 116 percent, significantly increasing airlines’ operating costs, the ministry said.

While fuel supply from CPC Corp and Formosa Petrochemical Corp remains normal, some airports in other countries — including Myanmar, Vietnam and the Philippines — have imposed refueling restrictions, resulting in a sharp increase in fuel costs for airlines, it said.

Airlines are adjusting operations by reducing and consolidating flights to save costs, Chinese Nationalist Party (KMT) Legislator Wan Mei-ling (萬美玲) said.

An average of 7.3 flights per week had been canceled this month as of Monday, accounting for about 0.2 percent of total flights, Wan said, citing data from the CAA.

Cancelations next month have risen to 52.6 flights per week, or 1.7 percent of total flights, and flight cancelations in July and August currently average one flight per week, she said.

These cancelations would have a significant impact on international travel during the upcoming peak season, she said, asking if it could be guaranteed that flights would not be further reduced.

While the ministry cannot mandate that airlines maintain flights, it would monitor their challenges, provide assistance and maintain communication to help minimize reductions, Chen said.

Meanwhile, the ministry told the committee that the base price for highway bus transportation is expected to rise starting next month and that it would provide NT$120 million in subsidies, while the subsidy amount for taxis would remain unchanged.

Subsidies have been a backup plan available to bus operators should diesel prices meet the standard for a base price hike, the ministry said.

As of last month, diesel prices, even after weighted consideration, stood at NT$28.31 per liter, which did not meet the price-hiking standard of NT$29.6 per liter, it said.

Average prices have met standards this month, and should operators file for subsidies, the ministry would make the announcement next month, Highway Bureau Director-General Lin Fu-shan (林福山) said.

If the subsidies start next month and continue through December, the total subsidies would stand at NT$120 million, Lin said.

When asked whether taxis would receive gasoline subsidies, Chen said that subsidies for other public transportation, including taxis, were still being discussed.

If approved, based on previous models — NT$5 per liter in subsidies — the government is looking at NT$190 million per month and about NT$1.5 billion from next month through December, he said.

When asked whether domestic public transportation would maintain a freeze on ticket prices, Chen said the freeze was part of the Executive Yuan directives.

The ministry said it estimates that the total funds needed to cover the costs of maintaining a freeze on ticket prices would amount to NT$8.5 billion, and that it would ask CPC Taiwan to pay out of pocket first before reimbursing it through future budgets.