Rising crude to increase cess for air travellers

New Delhi: With global crude prices hovering around $110 per barrel, Indian airlines are almost certain that aviation turbine fuel (ATF, jet fuel) will become expensive next month. And the burden of this hike will be passed on to passengers in terms of higher fuel surchange, which at present is Rs 1,650. Some airlines are now going to have differential surcharge to stop short-haul passengers from shifting to other cheaper modes of transport.
Kingfisher EVP Hitesh Patel said the higher fuel prices have led US carriers to announce a steep hike in fuel surcharge. ''There is no way any airline can absorb the rising crude price and this burden will have to be shared with passengers in form of higher surcharge,'' he said, while ruling out differential fuel surcharge for Kingfisher-Deccan combine.
SpiceJet executive chairman Siddhantha Sharma feels that current crude prices indicate that ATF will reach a level where surcharge can't remain same for all sectors. GoAir CEO Edgardo Badiali also echoed the need for having different cess for short and medium haul flights.
15/03/08 Saurabh Sinha/Times of India

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Categories: Indian Aviation- In General Mar 2008