Air fares set to go up by 8-10%

Mumbai: Air fares are set to go up again, with the government announcing an over 18 per cent average increase in the prices of aviation turbine fuel (ATF), effective Saturday midnight.
Airlines are preparing to increase the fuel surcharge, which is expected to push up fares by 8 to 10 per cent. "We should be able to come out with the exact details of the hike in fares by Monday..", said Hitesh Patel, executive vice-president, Kingfisher Airlines. According to sources within the airline, Kingfisher will jack up the fuel surcharge to Rs 750, split in two parts.
Mumbai-based low-cost carrier GoAir said it is looking at differential pricing. The airline is looking at introducing a separate haul category – a medium haul (600-1,000 km) – where it can adjust the fare increase. The aim is to spare the short-haul fliers.
The largest private carrier, Jet Airways, could not be contacted and its CEO Wolfgang Prock-Schauer neither took calls nor replied to text messages. Airlines had announced an additional levy of Rs 350 as fuel surcharge last month.
"We will have to pass on the additional costs incurred to the passengers, there is no way we can absorb these costs," said G R Gopinath, executive director, Simplify Deccan.
Air India said it will increase the fuel surcharge for flights up to 750 km by Rs 300 and for flights beyond that by Rs 550, effective June 3.
01/06/08 Manisha Singhal/Business Standard

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Categories: Indian Aviation- In General Jun 2008