Aviation oil price hike drives up air tickets

Ranchi: With public sector oil firms increasing aviation turbine fuel (ATF) sale prices by 18.5 per cent, air-carriers have raised fuel surcharge with effect from Tuesday, making air travel costlier.
Four air-carriers — Air India, Jetlite, Deccan and MDLR — that operate to and from Ranchi.
Air India has raised its fuel surcharge from Rs 1,950 to Rs 2,250 for a distance of 750km and from Rs 2,350 to Rs 2,900 for a distance beyond 750km.
Jetlite has raised the fuel surcharge from Rs 2,850 to Rs 3,250. Deccan has raised its fuel surcharge from Rs 1,950 to Rs 2,500, while MDLR has raised its surcharge from Rs 1,500 to Rs 2,000.
The hike in ATF was announced on Saturday, forcing the air-carriers to pass on the additional burden to the passengers.
Fuel accounts for almost 40-50 per cent of an airline’s total operating cost. Airlines have blamed the hike on the steep rise of crude oil prices.
But, the good news for the airlines has been that the rise in the fare has not affected the commuters or the ticket sales adversely — as yet.
03/06/08 The Telegraph

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Categories: Indian Aviation- In General Jun 2008