Saturday, November 04, 2006

Airline CEOs to discuss fare hike today

New Delhi: The stage seems set for another battle in the airline industry over fuel surcharge. The recently-formed aviation industry body Federation of Indian Airlines (FIA) will meet in Mumbai on Saturday to decide a fresh flight path for fuel surcharges.
The meeting, airline industry sources said, will see the airlines crossing swords again over the contentious issue of fare hikes and fuel surcharge. While some full-service carriers have been building a case for effecting another hike in fuel surcharge, the low-cost airlines have been against any such move.
While international airlines have already begun reducing the fuel surcharges on their tickets, the domestic airlines in India are yet to follow suit. Sources said some of the airlines felt it would help them wipe off some of the losses.
The CEOs of the 11 Indian carriers are also trying to give their newly-formed association a neutral, professional face. They are also expected to discuss appointment of a head-hunter who will be entrusted with the charge of finding a professional secretary general for their association.
04/11/06 Byas Anand/Times of India
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