Fuel prices raised; airlines may hike fares Rs 150-300

New Delhi: Domestic air travel could become more expensive in the coming days by Rs 150 to Rs 300 .
With Indian Oil raising the price of aviation turbine fuel (ATF) by between 4.3 per cent and 6.5 per cent in the four major metros, airlines may raise fares to offset their increasing fuel bill.
On Monday night, Indian Oil announced that in July domestic airlines refuelling in Chennai will be charged Rs 75.50 a litre of ATF up from the June sale price of Rs 72.36 a litre.
Similarly, in Delhi airlines will be charged Rs 69.09 a litre up from Rs 66.22 a litre charged earlier, while in Kolkata they will be charged Rs 78.64 a litre compared to Rs 73.47 a litre charged in June. Currently, ATF constitutes 45-50 per cent of the operating cost of most domestic airlines.
However, they are keeping the cards close to their chests.
The domestic airlines last raised fares on June 19 this year. While the full service airlines decided to levy a minimum basic fare of Rs 1,000 for distances of up to 750 km and charge a basic fare of Rs 3,000 for longer journeys, the low cost airline SpiceJet decided to raise basic fares by between Rs 300 and Rs 400.
01/07/08 Business Line

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Categories: Indian Aviation- In General Jul 2008