Costlier ATF may push air fares

New Delhi: Many domestic airlines have almost decided to raise fuel surcharge - that was hiked by Rs 100 to touch the Rs 1,200 mark on October 1 - again very soon as the international price of crude has touched an all-time high of $ 92.
Oil PSUs declare aviation turbine fuel (ATF) prices on the first of every month and a hike of up to Rs 300 is on the cards from November 2 or 3. Passengers who book their tickets before the hike is announced, won't be required to pay this difference. But coupled with the higher basic fares being charged in this peak travel season, domestic ticket prices are headed firmly northward from next month.
The aviation ministry and airlines have been fighting g a losing battle to keep ATF prices in control because raising petrol, diesel, LPG and kerosene prices is a political minefield. Air travellers, on the other hand, are still considered to be an elite class that can be asked to keep paying more to cross subsidise the types of fuel.
27/10/07 Times of India

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Categories: General Aviation Oct 2007