Singapore Airlines to Implement Green Fuel Levy, Fares to Rise
Executive Summary
Key insights and market outlook
Singapore's Civil Aviation Authority (CAAS) has announced a green fuel levy on flights departing from Singapore starting next year. The surcharge will range from US$1 to US$41.60 per ticket, depending on route and class. Economy class passengers on short-haul flights within Southeast Asia will face the lowest additional cost of US$1 (Rp 16,600), while long-haul business class passengers to destinations like the United States will be charged significantly more.
Deep Dive Analysis
Singapore to Introduce Green Fuel Levy on Flights
Environmental Surcharge Takes Effect Next Year
Singapore has become the first country to implement a green fuel levy on air travel, affecting all passengers departing from its airports. The Civil Aviation Authority of Singapore (CAAS) announced that the additional charge will vary based on both the route and class of travel.
Pricing Structure for Different Routes and Classes
The green fuel levy will be implemented on a sliding scale:
- Economy class passengers on short-haul flights within Southeast Asia: US$1 (Rp 16,600)
- Economy class passengers on long-haul flights to destinations like the United States: US$10.40 (Rp 172,640)
- Business class passengers: charges can be four times higher than economy class rates
Rationale and Industry Context
This initiative is part of Singapore's broader environmental strategy to reduce carbon emissions in the aviation sector. The revenue generated from the green fuel levy is expected to support the development and adoption of sustainable aviation fuels.
Source References
Story Info
Topics Covered
Key Events
Green Fuel Levy Implementation
Sustainable Aviation Policy