ATF prices fly low but fuel surcharge still soaring

Mumbai/Bangalore: Aviation turbine fuel (ATF) prices have only been sliding since August this year. This month, for the first time after three cuts, Delhi’s jet fuel prices fell 5% against those in November last year.
But the fuel surcharge in the same period is over 114% and 66% higher for long-haul and short-haul flights, respectively, for budget carriers.
Low-cost airlines were charging Rs 1,350 as fuel surcharge per ticket in November last year. This year, the levy is Rs 2,250 per ticket on short routes and Rs 2,900 per ticket on longer routes.
Till last month, jet fuel prices were higher when compared with last year. For instance, October’s price was 42% higher than in the same month last year and climbed up 82% on a year-on-year (y-o-y) basis in August. But softer fuel prices now are not pulling down fuel surcharges, which are currently between Rs 2,250 and Rs 3,350 per ticket.
Why are the airlines refusing to slash fuel surcharges despite a 44.55% drop in ATF prices since August?
Most airline executives blame the devalued rupee for not revising the fuel surcharge.
19/11/08 Nirmal John & Praveena Sharma/Daliy News & Analysis

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Categories: Indian Aviation- In General Nov 2008