Price of aviation fuel, surcharge may rise

New Delhi: Air fares in the country are expected to go up again, with airlines planning a sharp hike in the fuel surcharge (at present Rs 1,650 per ticket). They are fearing a hike in price of aviation turbine fuel (ATF), after global crude hitting the $100 mark.
Airlines, which are already making huge losses, say they will not be able to absorb any increase in input cost, which means costlier flying. At this stage, no airline was able to give a figure on fare hike as oil PSUs determine ATF prices based on the prices of crude.
What’s more, “the increasingly difficult financial position that some airlines will get into because of rising fuel cost could pave way for more consolidation in the industry in the next 18 to 24 months,” said an industry insider. In the last financial year, airlines reported a collective loss of $500 million and the current one (2007-08) could be even worse.
04/01/08 Saurabh Sinha/Times of India

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Categories: Indian Aviation- In General Jan 2008