Wednesday, August 02, 2006

Domestic air fares set to soar

Mumbai: Domestic air fares are set to go up for the third time in 2006 with airlines planning to increase fuel surcharge on tickets.
This is after India’s largest aviation turbine fuel (ATF) producer Indian Oil Corporation announced a 2.4% hike in the jet fuel price to Rs 47,691 a kilolitre on Tuesday. IOC has 90% market share in the domestic ATF business.
ATF prices have risen 31% in the last 12 months to hit an all-time high of Rs 47,691 a kilolitre on Tuesday.
Indian Airlines (IA) chairman & managing director V Trivedi said, “We will shortly increase the fuel surcharge as ATF prices have gone up again.” The existing fuel surcharge on domestic air fares is Rs 500.
SpiceJet director Ajay Singh said, “If everybody hikes fuel surcharge, we will also do so.”
India's first low-cost carrier Air Deccan has similar plans.
01/08/06 Financial Express
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