Domestic flying to become more expensive

New Delhi: Domestic flying could become more expensive in the next few days. With aviation turbine fuel (ATF) prices increasing by more than Rs 2,300 per kilolitre at the four metro cities, some airlines plan to pass on the burden to the passengers.
However, sections in the industry feel that the increase in ATF prices is not toohigh and can be absorbed by the airlines.
On Saturday, Indian Oil announced that the per kilolitre price of ATF in Delhi would be Rs 47,048.86 up from Rs 44,716.49 charged during the previous month. In Chennai oil companies are to charge domestic airlines Rs 51,090.08 per kilolitre during the month up from Rs 48,548.82 charged previously.
At the moment, ATF accounts for between 30 and 35 per cent of the operating cost of most major airlines and with the global prices of oil rising airlines have been passing the increased burden on to the passengers.
02/03/08 Ashwini Phadnis/Business Line

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Categories: Indian Aviation- In General Mar 2008