Airlines divided on increasing fuel surcharge

New Delhi: Indian carriers, already reeling under high fuel costs, were on Tuesday divided over the issue of whether to pass on to customers the burden of hike in the rates of aviation turbine fuel announced by state-run oil companies yesterday.
At a meeting of the Federation of Indian Airlines, an umbrella body of the airline industry, top executives of major carriers could not arrive at a decision on the issue.
"No decision has been arrived at," said Jet Airways CEO Wolfgang Prock-Schauer when asked about the FIA meeting.
When asked whether the airlines would be increasing the fuel surcharge following the 4.3 per cent hike in ATF prices announced by state-run oil companies yesterday, he said no decision has been arrived at so far. "I can't say anything today or tomorrow," he said.
Chiefs of Kingfisher, IndiGo and SpiceJet were among those present at the meeting chaired by Air India's Anita Goyal.
However, industry sources said the airlines, which had not passed on the benefit of customs duty reduction from 10 per cent to 5 per cent announced on June 5, were divided on the issue of whether to hike the fuel surcharge or not.
01/07/08 PTI/Economic Times

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Categories: Indian Aviation- In General Jul 2008