GOVT SEES AIR FARE DROP
Manila, March 22, 1998 - Good news for travellers. Trade and Industry Secretary Cesar Bautista expects a drop in air fares by as much as 60% as a result of the recent rollback in oil prices.
Bautista said the Civil Aeronautics Board has written the Economic and Monitoring and Mobilization Task Force regarding a decrease in passenger and cargo fares.
Oil prices were reduced by an average of 56 centavos per liter last March 6.
Apart from the rollback in oil prices, competition among local airlines is seen by Bautista as another factor that will pull down passenger fares and cargo rates.
Bautista said Philippine Airlines and Grand Air will be seeking fare reductions, because still competition among airlines influences them to lower their charges. Several airlines are already offering discounts by as much as 50% on tickets purchased in advance.
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