British Airways World Cargo Increases Fuel Surcharge (29/04/2004)
British Airways World Cargo today announced that it has increased its fuel surcharge to GBP 0.12/kg or local equivalent, effective from 13th May 2004. This is consistent with our policy of giving customers at least two weeks notice of the changes to fuel surcharges.
The increase to the fuel surcharge has been caused by the continued rise in fuel prices, causing the fuel index to exceed the level 4 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 225 for two consecutive weeks the fuel surcharge will be increased to GBP 0.16/kg or local equivalent. If the fuel index decreases below 175 for two consecutive weeks the fuel surcharge will be reduced to GBP 0.09/kg or local equivalent. Details of the current index level, including the latest Fuel Index Graph
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:
| Implementation/Increase |
|---|
| Fuel Index |
Fuel Surcharge |
Area of Application |
| Exceeds 125 |
GBP 0.03/kg |
From UK
All other countries local currency equivalent |
| Exceeds 145 |
GBP 0.06/kg |
From UK
All other countries local currency equivalent |
| Exceeds 175 |
GBP 0.09/kg |
From UK
All other countries local currency equivalent |
| Exceeds 200 |
GBP 0.12/kg |
From UK
All other countries local currency equivalent |
| Exceeds 225 |
GBP 0.16/kg |
From UK
All other countries local currency equivalent |
| Exceeds 250 |
GBP 0.20/kg |
From UK
All other countries local currency equivalent |
| Reduction/Suspension |
|---|
| Fuel Index |
Fuel Surcharge |
Area of Application |
| Below 225 |
GBP 0.16/kg |
From UK
All other countries local currency equivalent |
| Below 200 |
GBP 0.12/kg |
From UK
All other countries local currency equivalent |
| Below 175 |
GBP 0.09/kg |
From UK
All other countries local currency equivalent |
| Below 145 |
GBP 0.06/kg |
From UK
All other countries local currency equivalent |
| Below 125 |
GBP 0.03/kg |
From UK
All other countries local currency equivalent |
| Below 100 |
Suspend surcharge |
Global |
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, 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.
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, 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.
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