Air travel to cost more

New Delhi: Low cost air travel is seeing some creeping increase in fares. In the coming days, such travel will become costlier with most airlines planning to increase the fuel surcharge by Rs 100 to offset their rising fuel bill.
This follows an increase of between Rs 1,604.52 per kilolitre (kl) to Rs 1703.49 per kl in the sale price of aviation turbine fuel (ATF) in October as compared to the previous month at the four major metro cities.
Airline officials point out that with ATF prices being on the rise continuously for the past several months, they have little choice but to pass on the increase to the passengers. In India, ATF accounts for between 30 per cent and 35 per cent of the operating cost of most major airlines.
A spokesperson for low cost airline SpiceJet said the airline was likely to announce a Rs 100 increase in the fuel surcharge within the next day or two. Jet Airways and the Madurai-based Paramount Airways confirmed a similar increase.
“The cost push has to be passed on to the consumer. In the past six months, the impact of increase in fuel costs has been offset by increasing the fuel surcharge,” said the Chairman and Chief Executive Officer of Kingfisher Airlines, Mr Vijay Mallya.
This is the fifth time that airlines have hiked the fuel surcharge since September last year.
01/10/07 Business Line

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Categories: General Aviation Oct 2007