Differential fares mooted to tackle ATF price hike

Mumbai: Consequent to a 13% plus revision in the prices of aviation turbine fuel (ATF), most of the airlines are hiking the fuel surcharges levied on each ticket.
But this time, the twist is the differential hikes for short haul and long haul rather than an across-the-board one.
Airlines which have confirmed this include Jet Airways, Kingfisher Airlines, Deccan and SpiceJet. Air India said that it hasn’t yet decided on the hike.
Flights connecting destinations within 750 km are seen as short-haul flights. For these destinations, the hike would be Rs 150 per ticket. Traveling outside this radius would attract a hike in fuel surcharge of Rs 350.
Thus the two new fuel surcharges would be Rs 1,800 and Rs 2,000. Oil marketing companies like Indian Oil Corporation revise prices in step with movements in international crude prices. These have been hovering around the $100 mark leading to the price hike.
The ever-increasing fuel surcharge has been a major reason driving price sensitive passengers away from flying.
02/03/08 Nirmal John/Daily News & Analysis

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Categories: Indian Aviation- In General Apr 2008