Now, check-in bags can raise your air fare

Berlin: The more luggage you carry, the more expensive your air ticket could be. Jet Airways has indicated that passengers may be charged extra for their check-in luggage to make up for spiralling fuel prices. Jet's move comes in the wake of the mighty American Airlines announcing its plan to levy a $15 fee on the first piece of checked-in baggage and $25 on the second piece.
"I'm not overruling fuel prices going up further and every airline has to look at its bottom line and adopt some measures," said Naresh Goyal, chairman, Jet Airways at the Berlin Air Show on Tuesday. "We have not yet decided on how fares will increase, but they will increase and every airline will have to do so too."
Goyal added that Jet Airways will explore every solution to check losses accruing from the rise in fuel price. He said the Indian airline industry stood to lose up to $2 billion in 2008. The price of crude oil reached a record $133.82 a barrel last week, forcing airlines to make deep cuts in order to stay in the business. Until now, Indian carriers responded to fuel price hikes by increasing the fuel surcharge component on the air ticket.
At the show where German Chancellor Angela Merkel was present, Goyal took delivery of an Airbus A330-200 aircraft, sending out signs that cost cuts would not affect the purchase of new aircraft, with Jet spreading its wings to Hong Kong and expanding services to Europe and the Middle East.
28/05/08 Manju V/Times of India

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Categories: Berlin air show 2008, Foreign May 2008, Jet Airways May 2008