ATF hike in offing, air fares set to go up

New Delhi: Cost of air travel within the country is all set to go up once again as airlines are bracing up for another hike in aviation turbine fuel (ATF) prices on December 1. The two options under consideration are a hike in basic fare or another increase in fuel surcharge which is already hovering at Rs1,350. Either way, cost of air travel would increase by Rs.200 or at least Rs150 per sector for economy class travel between metro cities.
The actual increase could be far higher as discounted fares also being reduced to the bare minimum. Airline sources said the current apprehension is ATF price would go up by 10% at the beginning of December and efforts by civil aviation minister Praful Patel and petroleum minister Murli Deora have failed to goad public sector oil companies to cut fuel prices. Most airlines are in favour of another hike in fuel surcharge as it is simpler to implement and chances of undercutting are minimum, said a sources familiar with the development.
21/11/07 G Ganapathy Subramaniam/Economic Times

To Read the News in full at Source, Click the Headline

Categories: General Aviation Nov 2007