GoAir’s flat-fare move could lead to differential fuel surcharges

Mumbai: Low-fare airline GoAir has dropped fares on the Delhi-Jaipur route below the surcharge airlines in India levy on passenger tickets, potentially triggering a similar move by others if jet fuel prices decline further.
At a time when airlines have been increasing the so-called fuel surcharge, the Mumbai-based Go Airlines India Pvt. Ltd that runs the carrier now offers a flat fare of Rs1,075 for passengers flying from New Delhi to Jaipur, including all taxes and surcharges.
At present, domestic airlines, which have posted some Rs2,000 crore losses the last fiscal year, are charging Rs1,650 as fuel surcharge and Rs150 as congestion surcharge, apart from Rs225 passenger service fees (payable to the government) per ticket.
It was not immediately clear whether the Wadia Group-promoted airline would extend this flat fare strategy to other routes as well. The normal fares charged by low-fare carriers on the 40-minute Delhi-Jaipur air-route is nearly Rs2,750 (including surcharges and taxes), while a full-service carrier such as Air India charges Rs6,310.
10/01/08 P.R. Sanjai/Livemint

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Categories: GoAir Jan 2008