Airlines divided on raising fares

New Delhi: The domestic airline industry is divided on whether the increase in prices of aviation turbine fuel (ATF) should result in a further rise in airfares.
While a section feels that the industry should absorb the latest increase of about up to 6.5 per cent in ATF prices as last month there was no rollback in airfares after the Government halved the customs duty on ATF, this is objected to by some airlines.
Speaking to newspersons after a meeting of the Federation of Indian Airlines (FIA) here on Tuesday, the Chief Executive Officer, Jet Airways, Mr Wolfgang Prock-Schaeur said, “No decision was taken today. A decision, if any, could be taken in the next few days”.
Late on Monday, Indian Oil raised ATF prices by between 4.3 per cent and 6.5 per cent in the four major metros.
During the month, airlines in Chennai will be charged Rs 75.50 a litre of ATF up from the June sale price of Rs 72.36 a litre, while in Delhi airlines will be charged Rs 69.09 a litre up from Rs 66.22 a litre charged earlier.
02/06/08 Business Line

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Categories: Indian Aviation- In General Jul 2008