Charter operators to raise rates 20% from September

New Delhi: Even as growth in traffic on chartered flights has fallen 6 to 8 per cent over the past year, rising fuel prices are forcing private charter operators to raise tariffs a substantial 20 per cent from September 1.
This follows an 18 per cent increase in the last 12 months. India has more than 50 non-scheduled operators, which include helicopter operators like Global Vectra, aircraft operators like Ran Air and Taj Air and companies like Deccan Aviation Ltd that fly both helicopters and aircraft. A chartered flight costs Rs 50,000 to Rs 2 lakh an hour, depending on the aircraft capacity and the services offered.
Aviation turbine fuel (ATF) accounts for around 35 per cent of the total costs of a private charter operator against around 25 per cent last year.
Demand for charters has slowed for two reasons. First, because airlines have cut fares (though these have also increased drastically in the past three months), and increased the number of flights. As a result, corporate travellers find flights to suit their schedules.
Second, many companies are now buying their own jets that they use in preferences to charter services.
10/07/08 Anirban Chowdhury/Business Standard

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Categories: Indian Aviation- In General Jul 2008