Fuel Surcharge

Open letter to Pacific Coastal Airlines customers

As you may be are aware, the cost of fuel has risen to historic levels over the past few months. Analysts are predicting that fuel prices are not likely to drop significantly in the near future. Although we have done our best to manage fuel cost, the high price of fuel is now having a significant impact on our operation.

In light of this unusual situation we have made a decision to add a fuel surcharge to all of our fares
effective Tuesday, April 12, 2011. 

The surcharge...

• is a true reflection of fuel cost
• will be reviewed and adjusted, up or down, on a week-to-week basis if applicable
• will be eliminated when the price of fuel returns to a level that is covered by fares

Introducing a fuel surcharge was a better and more transparent alternative to constantly adjusting fares.

The surcharge varies from $3.00 - $7.00 and has been distributed across three distances and applied per single leg between Vancouver the listed communities in the left column.

I understand that such an increase is never a welcome event and want you to know that we did not take the implementation of a fuel surcharge lightly. We value your business and trust that you understand
the unique nature of this situation. Your support allows us to continue to provide essential services to
local communities and travel, charter, and cargo services throughout B.C. and western Canada.

Regards,

Quentin Smith,
President