Extra fuel surcharge to raise airfares by Rs 150

Mumbai: Domestic airlines are all set to raise fuel surcharge on passenger tickets by Rs 150 from May 4. The higher amount combined with the congestion charge, will mean that passengers will have to pay Rs 1,050 per ticket on fuel related charges.
Of this amount, the fuel surcharge will go up from the existing Rs 750 to Rs 900, while congestion charge is Rs 150. In addition to the fuel related charges, air-travellers also shell out Rs 225 as service fee, which accrues to the airport and the government.
The increase in fuel surcharge will help improve the airlines’ margins to some extent. An overcapacity situation in the domestic airspace has led to a situation where none of the nine airlines in the country is making profits.
In fact, they are collectively expected to lose about $300m in 2006-7. “The increase in fuel surcharge is to compensate for higher aviation turbine fuel (ATF) prices in the past few months,” airline sources said.
30/04/07 Cuckoo Paul/Economic Times

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Categories: General Aviation Apr 2007