ATF price, airfares to rise again

Mumbai /New Delhi: India’s state-run oil firms have indicated they will increase jet fuel prices by more than 10% starting 1 June tracking record global oil prices, forcing airlines to increase domestic airfares even as they scale back on routes to rein in costs, and customers turn away citing unaffordable ticket prices.
Airlines have increased the so-called fuel surcharges levied on air tickets by up to Rs350 in May after oil firms increased aviation fuel prices. It is unlikely to be any different this time, though it is unclear by how much.
“It is bound to happen,” said Samyukth Sridharan, chief commercial officer at SpiceJet Ltd, referring to the increase in fuel surcharge and follow-on airfare increases. The airlines “cannot afford not to pass the hike” to passengers, he added.
“Airlines have said fuel taxes will go up by another Rs400 per person (from 1 June) even as the international fuel taxes are ever increasing,” said Sanjeev Bhasin, assistant vice-president at travel portal Makemytrip.com India Pvt. Ltd.
The airlines include Jet Airways (India) Ltd, which together with its low-cost carrier JetLite Ltd makes for the biggest Indian airline group by passengers carried, and SpiceJet, he added. Calls and text messages to Jet Airways chief executive Wolfgang Prock-Schauer for comment were not returned.
31/05/08 P.R. Sanjai and Tarun Shukla/Livemint

To Read the News in full at Source, Click the Headline

Categories: Indian Aviation- In General May 2008