British Airways World Cargo Increases Fuel Surcharge (06/09/2002)

British Airways World Cargo today announced that it has increased its fuel surcharge to GBP0.06/kg or local equivalent, effective from 23rd September 2002.

The increase to the fuel surcharge has been caused by the continued rise in fuel prices, causing the fuel index to exceed the level 2 threshold for two consecutive weeks.

The index was developed by British Airways World Cargo to provide customers with more information about the calculation of fuel surcharges. It is updated on a weekly basis and posted on the British Airways World Cargo website.

Based on the fuel index methodology, if the fuel index exceeds 175 for two consecutive weeks the fuel surcharge will be increased to GBP0.09/kg or local equivalent. If the fuel index decreases below 125 for two consecutive weeks the fuel surcharge will be reduced to GBP0.03/kg or local equivalent.

Methodology
The British Airways World Cargo fuel index is based on the average price of aviation fuel in four key spot markets; North West Europe, Singapore, Los Angeles and US Gulf. These averages are monitored against a fixed base of USD 0.513 per US Gallon, equal to index 100, and from this a weekly fuel price index will be published. Fuel surcharges will be determined when the index reaches specific trigger points as shown in the table below for two consecutive weeks:

This index is a guideline only.

British Airways World Cargo reserves the right in its discretion to apply different rates where required by local government or legislative bodies or commercial considerations. British Airways World Cargo reserves the right in its discretion to suspend the index at any time, and to change rates without notice.