Emirates, Etihaad take lead on fare-hike route

Mumbai: International airfares threaten to throw many a finely tuned holiday-budget off balance, as European and Middle-Eastern airlines head for a steep increase in their fares.
Two airlines, Emirates and Etihaad, have kicked off the process with a 10% jump in their fares that comes into effect on Thursday. A host of other carriers like British Airways, Air India and Lufthansa are expected to follow, as oil prices compete with airlines to reach stratospheric highs.
In tandem with rising crude oil prices, jet fuel prices in the international markets are now touching $170 per barrel, which airline sources say is “absolutely uncharted territory”. Domestic airlines in India have already revised their fuel surcharge to Rs 2,350 per sector earlier this month. Most international carriers had not made revisions in the recent past, but with oil prices firming up, they are now ready to announce an increase.
Some airlines such as Emirates club the fuel surcharge with basic fare. The economy class fare on Emirates for an India-London return ticket has now gone up to Rs 32,695 from Rs 29,995 earlier. For an India-New York (JFK) return ticket, passengers will have to shell out Rs 49,045, up from Rs 44,995 earlier. The same airline is offering India-Dubai return at Rs 20,165 up from Rs 18,500 earlier. The fares exclude airport and other taxes.
14/05/08 Cuckoo Paul/Economic Times

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Categories: Foreign May 2008, Indian Aviation- In General May 2008