No fuel surcharge hike for this month

New Delhi: Domestic carriers have decided against hiking fuel surcharge, that presently is Rs 1,650 per passenger, following the latest increase in jet fuel prices for this month. This move comes as March is anyways a lean travel season when airlines offer attractive schemes like low basic fares or discounts to lure fliers. Secondly, airlines did not reduce this surcharge even as aviation turbine fuel (ATF) witnessed price falls in past two months. So without passing on the benefit of lower prices to passengers, they find it hard to pass on extra cost with the latest hike.
Oil PSUs change ATF prices every month-end depending on global prices of crude as making petrol and diesel dearer is a politically sensitive decision and air travellers have to bear this burden. ATF prices touched a record high last December when airlines raised fuel surcharge to Rs 1,650 and coupled with other cess and taxes, the fixed cost for each ticket became Rs 2,025.
In January and February, ATF prices saw reductions but airlines refsued to react, calling this an 'aberration'. And in March ATF again became dearer - but the price is still below December level.
04/03/08 Times of India

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Categories: Indian Aviation- In General Mar 2008