ATF-hit carriers not to hike fares

New Delhi: Bleeding Indian carriers, which suffered another setback in the form of a 7 per cent-hike in aviation turbine fuel (ATF) prices today, have decided against raising fares this month. This is the first time this year that the carriers are not increasing prices in spite of a hike in ATF rates.
Air fares was one of the key issues discussed by the Federation of Indian Airlines (FIA), a lobbying body of the Indian carriers, at a meeting held here today, sources said.
"There was some resistance from full service carriers but eventually they also agreed," said a source present in the meeting.
All the carriers had increased prices from June 1 when an ATF fare hike was announced. But none of them decreased fuel surcharge or basic fare when the ATF prices were decreased later due to dip in customs duty on ATF. Hence, carriers have decided not to increase fares this season," a source said.
ATF prices have been increased four times since January and lowered twice.
02/06/08 Business Standard

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Categories: Indian Aviation- In General Jul 2008