Airfare: Skies drift for the middle class

The sky, which once seemed within reach, has started to elude the middle class in India with major carriers announcing a hike in airfares. The north bound oil prices have battered the public sector oil firms who have found an already bleeding aviation industry as their last resort to recoup some losses.
Unlike other petroleum products such as petrol and diesel, the government does not control aviation turbine fuel (ATF) prices. The Public Sector Undertakings (PSU) oil firms had raised ATF prices by 18 per cent on Saturday. Jet Airways, Kingfisher, Deccan and Air India have already hiked fuel surcharge.
With the increase, a passenger will be charged Rs 2,250 as fuel surcharge for a distance of up to 750 kilometres, and Rs 2,900 for beyond 750 kilometres. Kingfisher and Deccan hiked their fuel surcharge by Rs 300 for short-haul and Rs 550 for long hauls, effective today.
Last month, when ATF prices rose about rupees five per litre, most airlines had hiked fuel surcharge by Rs 150 to Rs 350. Air India did not pass on the additional burden to its passengers. The airlines argue that increasing fuel bills forces them to hike fuel surcharge every time oil companies revise the ATF sale prices, as it helps them offset the additional liability to some extent.
03/06/08 Merinews

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Categories: Indian Aviation- In General Jun 2008