Will airlines cut fuel surcharge this Diwali?

Mumbai: From the time fuel surchage on air tickets was introduced, it has only been on the rise. Even a fall in fuel prices did nothing to bring it down. But now there is some good news for passengers as airlines have started cutting down on fuel surcharge. Flyers can expect more airlines to come up with competitive fares in the coming weeks as the Diwali holiday market hots up.
Lufthansa and Singapore Airlines have announced a cut in fuel surcharge this week. While Lufthansa has streamlined fuel surcharge for ultra long-haul travel, giving a clear benefit to India flyers, Singapore Airlines has brought down fuel surcharge from $110 to $100 for its flights between Singapore and cities in India and others like Australia, New Zealand, China, Japan, Korea, Hong Kong, Taiwan, etc. On the other hand, Lufthansa passengers flying from India to the US/Canada save up to $100 on each round-trip ticket. But why the decision to bring down fuel surcharge at a time when fuel prices are still volatile? "The reduction of the fuel surcharge is for commercial reasons as we are aiming for competitive fares for our customers , especially for those booking the longest routings available with us,'' the Lufthansa official said, adding that this was an adjustment to the calculation of fuel surcharges , which results in overall reduction of fuel surcharge for those travelling on two connecting intercontinental flights in the same journey.
Travel agents said airlines will introduce more such offers to capture the Diwali travel market.
However, airlines in India have not yet announced any cuts in fuel surcharge.
12/09/08 Times of India

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Categories: Indian Aviation- In General Sep 2008