Jet Air, Kingfisher Increase Levy on Higher Oil

Jet Airways (India) Ltd., the nation's biggest domestic carrier, Kingfisher Airlines Ltd. and other carriers raised their fuel surcharge by as much as 550 rupees ($13) to recover higher oil costs.
Jet Airways and its low-fare unit JetLite Ltd. raised the levy by 300 rupees on flights of up to 750 kilometers (465 miles) and 550 rupees beyond that, A.K. Sivanandan, an airline spokesman, said in a phone interview today. Kingfisher and its affiliate Deccan Aviation Ltd. will raise the surcharge by a similar margin, spokesman Prakash Mirpuri said in a text message.
Surging fuel costs, most Asian carriers' biggest expense, may threaten passenger traffic growth in India, where seven new airlines started in the past four years. Global carriers may post combined losses of as much as $6.1 billion this year, the International Air Transport Association said yesterday.
India's domestic air passenger traffic rose 8.7 percent in April, slower than the 25 percent the government has forecast until the end of the decade, according to the civil aviation ministry. The nation is set to become the world's fastest- growing major air travel market by 2025, according to Airbus SAS forecasts.
03/06/08 Vipin V. Nair/Bloomberg

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Categories: Jet Airways Jun 2008, Kingfisher Jun 2008