Air India to hike domestic fares by 10%

New Delhi: National Aviation Company of India Ltd (NACIL), the largest airline of the country created by the merger of Air India and Indian Airlines, is all set to hike fares by 10% on domestic sectors. The company may also raise fuel surcharge on international routes.
The move comes in the wake of domestic oil marketing companies (OMCs), such as IOCL, BPCL and HPCL, hiking jet fuel price due to soaring global crude price, which touched $120 a barrel. ATF price in Delhi has increased by 35% in the last six months.
Naresh Goyal-owned Jet Airways, the largest domestic carrier by market share, has already increased basic fare by 10% effective Saturday. Due to a hike in ATF price last year, Jet has to fork out additional $6 million per month on fuel, which contributes to 40% of an airline’s operating cost.
05/05/08 Nirbhay Kumar/Economic Times

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Categories: Air India Domestic May 2008