Airfares to go up from Monday

Mumbai: Airlines will increase their fuel surcharge by Rs 300 to Rs1,650 from Monday. While Jet, Kingfisher and Spice Jet have confirmed this move, Go Air and IndiGo say they are still assessing the impact and no decision had yet been taken.
Air India was not available for comment at the time of going to press. The hike is consequent to Indian Oil and its counterparts, HPCL and BPCL, raising jet fuel prices for the ninth time this year.
It is up by Rs6264.39 a kilolitre in Mumbai from Rs42,796.74 to Rs.49,061.13, according to the Indian Oil Company (IOC) website.
The aviation industry says it is high time the government steps into the picture.
ATF prices are revised every month on the basis of international crude prices. It is also heavily taxed and local prices show a premium of close to nearly 80% compared to international levels.
Analysts say that with the constant surcharge, hikes will soon start hurting load factors by driving away sections of the passengers, especially leisure travelers back to railways.
01/12/07 Nirmal John/Daily News & Analysis

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Categories: General Aviation Dec 2007