SpiceJet, IndiGo not to raise surcharge

New Delhi: The latest 20% hike in aviation turbine fuel (ATF) price has for the first time divided the aviation industry on its pricing policy.
While Air India, Deccan-Kingfisher and Jet-JetLite combines have hiked surcharge by Rs 300 to Rs 550, standalone low cost carrier (LCC) SpiceJet has not done so.
Instead it says will hike its basic fare by a like amount. IndiGo has also not hiked surcharge so far and is looking at other ways to bridge its cost-revenue gap.
SpiceJet director Ajay Singh said, ‘‘We have decided to hike our basic fares by Rs 300 and Rs 550 for small and medium sectors. We did not raise this amount in surcharge as the situation was becoming strange with airline taxes and surcharge being over Rs 3,000 and basic fares like Rs 500 or Rs 1,000.''
IndiGo chairman Bruce Ashby said, ‘‘We have not hiked the fuel surcharge so far and will continue to evaluate over next couple of weeks. Surcharge has been increasing steadily for a while and there have been certain issues about it. We are looking at options to modify the structure so that low fares can be reserved and our cost also be recovered. It's indeed a tall order.''
The Directorate General of Civil Aviation (DGCA) has recently issued new rules that make it mandatory for airlines to refund all taxes and surcharge to passengers who cancel their tickets well in time.
04/06/08 Saurabh Sinha/Times of India

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Categories: Indigo Airlines Jun 2008, SpiceJet Jun 2008