Airlines see ATF, cess cut

New Delhi: The New Year may ring in some good news for budget fliers who have been troubled by constant hikes in fuel surcharge levied by domestic carriers for past few months. Global crude has fallen from its all-time high of $99 to about $90 now and the industry expects a fall in price of aviation turbine fuel (ATF), which may see the fuel surcharge of Rs 1,650 going down proportionately.
What’s more, domestic travellers flying short-haul distances that can be covered in about an hour may pay less surcharge that those flying longer distances.
Almost all domestic carriers, irrespective of being low-cost or full-service, have been fearing losing budget fliers to cheaper trains — that have not seen a fare hike in past four budgets. Increasing surcharge — that’s risen from Rs 1,100 per ticket in September to Rs 1,650 now — is giving nightmares to airlines as the industry is witnessing a steep increase in capacity with induction of more planes that need more fliers to fill them up instead of losing even the existing ones.
25/12/07 Saurabh Sinha/Times of India

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Categories: General Aviation Dec 2007