50% fuel cess cut to make no-frills flights cheaper

New Delhi: There's good news for air travellers. Airlines have finally reacted to the charge of persisting with high fuel surcharge — introduced last August when jet fuel price was at its peak — even today when it is at a four-year low. Indian low cost carriers (LCCs) have reduced fuel surcharge on some of their routes by nearly half.
Airlines, both LCC and full service, were levying fuel surcharge of Rs 2,700 and Rs 1,950 for flights above and below one hour travelling time. Now, on routes where this surcharge has been slashed, this figure is down to about Rs 1,379 and Rs 975, respectively. Acting after a recent query from the Directorate General of Civil Aviation (DGCA) on the need for fare hike, no LCC was willing to say how long the surcharge would remain low.
For instance, Kingfisher Airline's website showed that travelling its full service flight between Mumbai and Goa on March 19 would cost Rs 3,179 (including a fuel surcharge of Rs 1,950) while its LCC flight would cost Rs 1,604 (including a fuel surcharge of Rs 975). Similarly, flying SpiceJet on Delhi-Mumbai route on March 22 costs Rs 2,694 as the fuel surcharge is down to Rs 1,379 instead of the previous Rs 2,700. And a ticket on IndiGo's Delhi-Goa flight later this month costs Rs 2,725 that includes a surcharge of Rs 1,379. Almost all LCCs have reduced fuel surcharge, and hence total fares, on several of their flights.
This action comes just days after DGCA chief Nasim Zaidi cracked the whip on airlines.
08/03/09 Saurabh Sinha/Times of India

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Categories: Low Cost General Mar 2009