Forget cheap travel, air fares set to rise sky high

New Delhi: Air travel is getting expensive by the day and in fact the low-cost carriers and super-low discount schemes may soon die an early death. Jet and Kingfisher Airlines are planning to hike prices and more private carriers are likely to follow suit. Jet wants to raise fares by 10 percent.
Blame the higher crude oil prices as the root cause. The air carriers claim they have already suffered losses to the tune of Rs 2,000 crore last year. The travelers will also have to feel some pain. Other airlines could soon also hike prices soon and that includes budget airlines as well.
The carriers have signalled this increase by imposing another round of fuel surcharge of Rs 150 from Sunday mid-night, which will take the total fuel surcharge to Rs 1,100. The increase in surcharge is primarily to take care of the hike in the price of aircraft turbine fuel (ATF), which was announced a few days ago. Airline sources said an increase of Rs 600 to Rs 1,000 is necessary for all carriers to become profitable.
10/08/07 CNN-IBN

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Categories: General Aviation Aug 2007